Enterprise for internal use - Segments target enterprises that would use delivered products or services for improving internal productivity, or for use as part of their service delivery. Enterprise Firmographic (industry grouping) - Specific attributes within companies or industries (e. g. industry, role, region... ) are used as a way to target needs in business to business (e. healthcare) and government markets. This is similar to demographic segmentation used in consumer businesses. Key accounts - Big companies or organizations can provide opportunities large enough to justify dedicated marketing to those key accounts. Additional strategies and hybrids are possible, but alternatives may have less data available, making it more difficult to determine the sizes of segment populations. Evaluating alternatives for the market segmentation strategy The following criteria, when prioritized, can be used to identify the segmenting approach best suited to the company situation and market environment.
Knowing your target market is the first step in selling your products and services. A marketing segmentation strategy further divides your target market into subgroups that are easier to manage. Customized customer experiences lead to higher customer loyalty and better-focused marketing campaigns. A market segmentation strategy organizes your customer or business base along demographic, geographic, behavioral, or psychographic lines—or a combination of them. Market segmentation is an organizational strategy used to break down a target market audience into smaller, more manageable groups. A customized customer experience leads to loyalty, better brand recognition, and ultimately higher profits for a product or service. Determining the right marketing segmentation strategy for your business means using or combining demographic, geographic, behavioral, and psychographic segments to reach a more targeted consumer or business base. Marketing segmentation strategies help your business predict where your products and services are most wanted, allowing for better customer experiences, loyalty, and niche marketing.
Homogeneity - Segments within the strategy should identify customers with similar needs for the products or services that will respond to the marketing mix. Intensity of competition - The segmentation strategy should provide opportunities for likely products or services to compete effectively. If the intensity of competition is destructive (destroying value for all players) then you want to avoid this strategy. Heterogeneity / Unique needs - Customers in different segments should have unique needs to justify separate offerings of products, marketing, or both. Increasing clarity of customer needs and wants Choosing a segmentation strategy is a scoping decision that helps focus early efforts of a business on the customer opportunities most likely to generate success. An effective segmentation will: Provide a source of advantage against larger competitors Direct early product, service and marketing development on specific customer needs and wants where success is more likely Improve sales, branding, distribution and advertising Limit expenses during early stages of business development Enhance and accelerate downstream decisions by limiting scope The focus created with a segmentation strategy enables continuing business as initial segments are served successfully.
For quality insurance, IKEA tests its products in their development stage by simulating the stress that furniture may endure at homes. The company has two test labs in Sweden and China where they also act as training grounds for employees. World-class supply chain management. IKEA seeks to source its wood close to its markets to reduce transportation costs. In some markets, such as Russia, IKEA leases forest land and has its employees directly manage the timberland. By 2013, IKEA was sourcing 20% of its wood from the leased forest in Russia. The company also partners up with a Russian-Chinese joint venture that was formed exclusively to meet IKEA's specifications on wood supply for the Chinese market. By backward integrating its supply chain, IKEA can efficiently control it in terms of cost, quality, and quantity. The company managed 1, 046 home furnishing suppliers in 52 countries, and its wholly-owned factories manufactured 25% of its own particleboard and 15% of its furniture, and there was a plan to expand its manufacturing capacity to 66% in 2013.
Any formula that serves to articulate its communication strategy is explored. Obviously you may have noticed that I have overlooked the digital channel. The truth is that it gives so much that I am going to talk about it on a new post that I hope you find it as interesting as these two. What have you cleared up from IKEA communication strategy? Anything to apply to your store? We are sure to.
Let's talk and define your marketing segmentation strategy today. Think. Do. Move.
Burger King Corporation is founded by James McLamore and David Edgerton, beginning the legacy of flame-broiled beef and commitment to quality ingredients and friendly service. BURGER KING is the second largest fast food hamburger chain in the world. Nowadays, more than 11 million... Wendy's, Viral marketing, Burger King advertising 1076 Words | Open Document