To succeed, it needs to attract and retain a growing base of satisfied customers.
Marketing is the tool to bring in customers to a business and has two important principles. All company policies and activities should be tailored towards customer needs and profitable sales volume is more important than maximum sales volume. An appropriate marketing plan will aim at trying to get visibility for its existing brand of "OnTyme" watches as well as the new teenage brand of watches named "Wotch" it.
It is common knowledge that no one product will satisfy all kinds of consumers. Therefore, information about the market is invaluable and timely relevant information needs to be obtained. It is impossible to sell products or services that customers do not want. Learning what customers want, and how to present it attractively, drives the need for marketing research.
Market research will also demonstrate trends that may show the necessity to enhance an existing product or create a new one. Demographics, Population shifts, legislation passed, and the economic conditions of a market often determine the purchasing power of the buyer in the market place. Market research may also be employed to ascertain the value of a competitor's product and its associated value so that a comparative perceived value could be created for "OnTyme"s product as well.
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Analyzing returned items, asking former customers for their feedback, and looking at competitor's prices are all examples of such research. Formal marketing research provides a framework to organize market information.
Conducting survey of a sample population to determine their views on the "OnTyme" and competitor brands,
Collecting primary data through mail surveys and email questionnaires
Personal surveys in high traffic areas like malls, supermarkets etc
Probability sampling that identifies who will be interested in purchase of wristwatches, the teen targeted "wotch" brand and the watch with the built in pager based on age, income and gender preferences.
Identifying the target segment
The target segment for the "OnTyme" might be adults purchasing a watch for their own use, buying it as a gift for someone else, for the "Wotch It" it would be the teenagers and youth, or adults purchasing it for the younger group as a gift. The watch with the built in pager may look at a different segment that is employed and needs to be on call and reachable at all times or parents of teenagers and youth, because the teenagers are now locatable, thanks to their pagers and is a great relief for the adults.
Once a wider customer base is identified, "OnTyme" needs to formulate a marketing strategy to serve its customers better and align the product to the identified needs of the customer. Ideally, the strategy should address niche needs of the customer especially if there are gaps that need to be filled. This would ensure potential profitability. A good strategy helps a business focus on the target markets it can serve best.
Target Marketing helps the concentration of the efforts in the key market