It is irrefutable that amidst the effort of companies to deliver the value which they have chosen to impart, there have been discrepancies with these two. The tactical aspect of marketing often does not fully embody what has been strategically formulated. In line with this, this paper looks at the value creation within MB, identifying the value that it chooses and how it provides this value to its clientele. At the end, this paper will give further recommendations on how value creation can be enhanced through the alignment of strategic and tactical marketing.
As with any business organization, MB's strategic aspect of marketing is comprised of its segmentation, targeting, and positioning. The company's identification of the value that it wants to provide is rationally through identifying its customers and their specific needs and wants and specifically pinpointing what image the company wants to build in the mind of its customers.
Among these client groups, the New Anxious represents approximately 25% of the company's customers. This segment, having the least income (average is FF12, 700), demands the most value for their hard-earned money for their first homes. It should also be noted that MB has a relatively high presence in this group indicated by the 138 MB presence index reported.
The Wealthy Savers comes next with approximately 24% of MB's clientele. Directly opposed to the New Anxious, this group generates high income which averages FF18, 100 and have owned their previous homes. MB also has a high presence in this segment relative to the industry (MB presence index is 123).
Autonomous Independents represents 19% of the MB's total market. Having an average income of $16, 500, this group occupies high social level and desires to own their home after renting for some time. Relative to its competitors, MB has a relatively low presence in this market indicated by MB's presence index which is reported at 53.
Wealthy Spenders and New Responsible both share approximately 16% of MB's entire market. Wealthy Spenders have the highest average income at FF19, 700. However, MB's presence in this sector is only limited compared to the whole industry. New Responsible group has a low average income of FF14, 400 who demands more value and quality from MB's products because they would want to leave their house to their children. The company has a very high presence in this segment (MB's presence index is 123).
The conducted market segmentation above clearly distinguishes the targeting strategy employed by MB. Furthermore, looking at the history of the company shows how it has alters and augments the particularly markets that it intended to serve: "Initially MB focused on building small, basic homes for middle and lower-income households. During the mid-1980s, the company shifted its focus to the higher end of the single family market." This shift in targeting strateg