Segmentation Factors to Use in Selecting the Target Market - Assignment Example

University

Introduction

Marketing is one the activities that any organization must take seriously to make it prosper. Today, businesses are characterized by competition and innovation of products. Because of this, any organization must cope with the pressure to enjoy a competitive advantage. Similarly, new businesses face challenges when entering the market because of the changing market dynamics. However, some overcome this by conducting due intelligence that enables them to mitigate some risks likely to be faced. Moreover, it is important for any organization to know its target before embarking on ways of reaching the potential consumers. This can be achieved in different ways.

Segmentation factors to use in selecting the target market

Different factors such as demography, psychographic, geography, and behavior influence the choice of the target market (Ferrell & Pride, 2016). In this case, the company will begin by using demographic factors to identify the target market. This will involve age, gender, marital status, family size, income, education level, race, occupation, and religion. Annex Company is a company that installs music systems in vehicles for consumers. Therefore, its target customers are those who own vehicles. Because of this, the organization targets the young aged middle-income consumers employed and have flowing income.

The psychographic factors the company will use are the hobbies and interests (Ferrell & Pride, 2016). The target group, who are the young middle-class loves entertainment and riding in flashy cars that are well equipped. Understanding the psychographic nature of the consumers is important in customizing the products and services that match their tastes.

Lastly, the business will use behavioral factors to target the market. These are important in understanding why these consumers would prefer one product or service to the other. Similarly, it will entail the understanding of the frequency of buying and how much time it take them to buy the product or service.

Portrait of ideal consumers

My ideal consumers are the middle-income individuals who own cars. This is so because they can purchase the products and services without bargaining much because they have money. The business target consumers from all races that are not barred by religion or culture from listening to music. They have a stable income and earn much money that will enable them to install different music systems in their cars to bring them convenience and feel the comfort. Similarly, my ideal consumers are those who love entertainment and would do all they can and within their means to entertain themselves. They have a positive attitude towards spending in something they feel adds value in their life. They are not bound by religious beliefs or cultural beliefs because they serve self-interest. They are people looking for quality and high value that meets the need of their social class.

Lastly, the ideal consumers are those who frequently buy products and changes different tastes. They take minimal time to choose what they want to buy because they have preferential choices with them. Ideal consumers are loyal to the organizational brand and values convenience, good prices and quality. They accept different payment methods that are convenient for them and the organization and buys from anywhere they can obtain the products or services.

Key buying behaviors and decision motivators of the consumers

Cultural

Culture plays a significant role in influencing consumer’s purchasing behavior (Madaan, 2009). Different aspects of culture from where the individual comes from also determine his or her purchasing behavior. First, these ideal customers are likely to be influenced by their family, friends, and the society that teaches them the importance of having a music system in the car. The society they come from embraces music and most of the people with cars have it; hence, the potential customers will follow suit since it is the culture.

Similarly, these consumers have a subculture that they conform to, and it dictates that they ride on cars with music. Therefore, it is difficult for an individual not to have a music system since it may make one to be prohibited from the subculture. Similarly, it is a way of identity within the subculture hence motivates them.

Lastly, cultural trend and social class are cultural factors that will influence these consumers to buy the products. For instance, these groups have adopted music system in their cars as a form of lifestyles, and it meets their interest. It is also a cultural trend that today's cars have a music system and many people looks for ways of acquiring one. The social class they belong will influence them to buy one.

Social

Social factors affect consumer behavior, and they fall under three categories namely membership group, family and social roles as well as status (Madaan, 2009). The target market has a social group which they belong and influences their buying behavior. It is made of people from almost similar age, reside together, and have some common leisure activities. They are likely to do an activity together or copy the initiator in case they feel it is right for them.

Moreover, the target market plays different social roles in the society and has distinguished social status that they want to maintain. For instance, some of this group is made of celebrities who would like to maintain certain social status to make their fans identify them. Therefore, they will buy the product to maintain their social roles and status.

Personal

Personal factors influence the decision of the target market towards buying behavior in many ways. First, age, and way of life influences buying behavior (Madaan, 2009). The young middle class frequently purchase because they like flashy things and to attract attention. Music is preferred among the young adults. Moreover, one's way of life would influence one to buy in case the consumer identifies with such a product.

Purchasing power and revenue is also a personal factor that influences purchasing behavior (Burrow, 2012). The working classes who have a flowing income and high purchasing power compose the target market. They are likely to purchase more often because they can afford the products and services. Moreover, they may buy to communicate their incomes and level of purchasing power to the external environment.

Psychological

The psychological factors influence the individuals buying behavior in four ways namely motivation, perception, learning ad beliefs and attitudes (Burrow, 2012). The target market is motivated to buy because they want to have a new experience. They are also motivated to buy because they want to identify themselves with the brand. Similarly, they feel the products meet their need by shielding them from boredom.

The target markets have a positive perception towards music system. This is likely to influence them because it brings to them a different experience that they cannot leave go. This is so because of the previous positive experience that they have had with the product as it brings convenience to them.

Moreover, learning is vital psychological factors influencing buying behavior as it changes behavior as one acquires information and experience. The target market has a prior learning experience because they have used such products. Therefore, they are likely to buy and use.

Lastly, their beliefs and attitudes will make them buy the products. The target market believes that music systems are good, and they are of quality. This belief has been cemented by the social groups and sub-cultures they subscribed to and seen the importance. The positive attitude and beliefs will contribute and make them purchase the products.

Product, personnel, marketing and brand image differentiation

The products differentiation will involve modification of objective properties of the products to make them meet the needs of the clients. Not many companies offer these services; hence, ours will be the first in the market. Because of this, the market will only have this for the meantime. The organization will offer after-sales services, and this will involve training the user on different aspects of the system (Kotler, Burton, Deans & Armstrong, 2005).

Personnel differentiation will include employing people with good skills and knowledge to make them serve customers better. Employees will be courteous, consistent and accurate with the information they receive and deliver. Moreover, employees will be trustworthy for the end consumers and quick in response (Kotler, Burton, Deans & Armstrong, 2005).

Image differentiation will have an identity that is different from the image to curb counterfeit and copyright of the products. It will aim at identifying itself to the customers and create a firms perception in the mind of consumers.

The marketing differentiation will include the use of different marketing avenues such as social and print media. These are vital because of the target market. Similarly, it will involve face-to-face marketing where the company will meet the target customers. Lastly, it will use email advertisement to reach those in the office who may be unable to be reached by other channels.

Positioning statement of the company

The positioning statement of the company is:

"For all the car owners who love music, Annex is a music system installer that provides instant quality entertainment in your car. We provide extraordinary convenience, low prices, and comprehensive system selection."

Conclusion

Marketing is critical in any business. It makes organizations tailor their products and services to specific customers. Because of this, they spend less money in the advertisement. However, the organization needs to choose its target customers carefully to customize the products and increase sales.