management report.doc

8/10/2019 management report.doc

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marketing approach' (Armstrong and Kot er, !""#$ *++&

B. Gender Segmentation

0ender segmentation is used to di4erentiate the needs and wants between menand women due to the fact that men and women have di4erent attitudes towarda product' he gender segmentation has ong been app ied in connection withc othing, hairsty ing, cosmetics and maga)ines' -urthermore it must be takeninto consideration that metro sexua ity has become a common gender3factorand thus the marketers must not on y de.ne a product as being mascu ine orfeminine (Kot er and Ke er, !""1$ !# &'

C. Income Segmentation

5ncome segmentation divides the market into di4erent income groups' 5t is usedin automobi es, c othing, cosmetics, .nancia services and trave ' 6any

companies within the mentioned categories seek to target the high3incomecustomers' 7thers seek to target the customers with a ower income in order togain consumer oya ty and essen the competitive pressures' 8owever,companies must consider the fact that the income does not a ways predict themost suitab e customers for a given product due to the fact that somecustomers may have other preferences and prioriti)e their money di4erent(Kot er and Ke er, !""1$ !#+&'

D. Generation Segmentation

/ach generation is in9uenced by the times in which they grow up i'e' the music,the movies, po itics and other signi.cant events characteristic of that period'6arketers therefore market to a generation by using icons and images that isre atab e according to the generation (Kot er and Ke er, !""1$ !#1&'

E. Social Class Segmentation

:ocia c ass segmentation divides the customers according to their preferencesin cars, c othing, home furnishings, eisure activities, reading habits andretai ers' 8owever, a though the tastes of socia c asses changes, manycompanies design products for speci.c socia c asses (Kot er and Ke er, !""1$

!;"&'$# GEOGRAPHIC

he geographic segmentation divides customers into segments based ongeographica areas such as nations, states, regions, counties, cities orneighbourhoods' A company can target one or more areas and must be aware of the fact that data according to geographic segmentation may vary due to


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popu ation shift ( ;&'

5t is important to segment according to geographic, due to the fact that thepurchasing behaviour of the customers are in9uenced on where they ive, worketc' (0unter and -urnham, *11!$ #&'

herefore many companies customi)e their products, advertising, promotion andsa es e4orts to .t the needs of the geographica variab es (Armstrong and Kot er,!""#$ *+;&'

%# PS&CHOGRAPHIC

&'


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Occasions

7ccasions are when the customers are divided into segments based on the timeof day, week, month and year (Kot er and Ke er, !""1$ !;>&'


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importance not to exc ude the non3users, ight users and medium users due tothe fact that these users may provide a positive prospect for future expansions'

B+,er!Rea-iness stage

=uyer3readiness stage refers to peop e2s awareness and interest of the product':ome peop e are unaware of the product, some are aware, some are informed,some are interested, some desire the product and some intend to buy (Kot erand Ke er, !""1$ !;%&'

he purpose is to ead the customer a ong so he or she wi purchase the productin the end'

hus the company shou d seek to design their marketing strategy according tothese factors' -or examp e, peop e from the E:A may have imited know edgeabout a product from the EK' :o in order for the product to be successfu in the

E:A, the company shou d adapt their marketing strategy according to theimited know edge an American may have'

)o,a.t, stat+s

A market can a so be segmented according to the oya ty of the customers' 5t isassumed that customers are a ways oya by buying the same product' hesecustomers are referred to as hard3core oya s' 7ther peop e that are oya towardtwo or three brands and buy these on a random basis are referred to as beingsp it oya s' A third group of peop e are those who shift from one brand toanother and staying with that brand for a period of time unti they shift toanother brand' hese customers are referred to as shifting oya s' he fourth and.na group of oya s are those who do not show oya ty or preference towardsone particu ar brand, but rather buy a product or brand that is on sa e oravai ab e at the time of the occasion' hese customers are referred to asswitchers (Kot er and Ke er, !""1$ !;%&'

Attit+-e

As a .na variab e to the behavioura segmentation is attitude toward a product'


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marketer has identi.ed the segments it must be decided how many and whichcustomer groupsFsegments to target' ith respect to the decision to whichcustomer groups or segments to target the company may choose one or acombination of the fo owing marketing strategies? mass marketing strategy(undi4erentiated marketing&, sing e segment strategy (di4erentiated marketing&or mu ti3segment strategy (concentrated marketing& (Dibb and :imkin, *11;$ *#3*;&'

*n-i/erentiate- arketing

ith undi4erentiated marketing a company does not consider the di4erencesbetween each segment and chooses to target the market with one o4er'

hereby the company focuses on the simi ar needs of the customers rather thanthe di4erences' 8owever, when using undi4erentiated marketing, it is notpossib e to meet every customer2s needs and thus it is not possib e to satisfy acustomers' -urthermore companies may meet hard competition from companiesusing e'g' concentrated marketing (see be ow&'

Di/erentiate- arketing

Di4erentiated marketing is a marketing strategy where a company target manymarket segments with o4ers specia y designed for each segment' hereby thecompany may have a higher sa e and thus stronger position within each marketsegment' 8owever, di4erentiated marketing a so means increased costs of

doing business due to the separate marketing p ans for each segment' hereforecompanies must consider increased sa es against increased costs when usingdi4erentiated marketing strategy'

Concentrate- arketing

Concentrated marketing, a so referred to as niche marketing, invo ves goingafter a arger share of one or a few segments' =y using niche marketing thecompany can market more e4ective y due to a strong position and greatknow edge of the customers2 needs within each segment' A thoughconcentrated marketing can be high y pro.tab e it a so invo ves a high risk dueto the fact that the company re y on one or a few segments for their who ebusiness and wi su4er great y if the segment turns sour (Armstrong and Kot er,!""#$ !""3!"!&'


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Positioning

he third and .na step in the market segmentation process dea s with

positioning' 7nce the company has identi.ed the segments and chosen whichsegment or segments to target the .na step is to decide on, what position itwants to occupy in those segments'


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uses and possessing simi ar physica characteristics constitutes a product ine'-or examp e, =aGaG / ectrica s turns out fans, e ectric amps, cab es, e ectricirons, heaters, transformers and so on'

01at is Pro-+ct 3Bran-4 Manager2

he product manager is assigned to a brand (or product& and is responsib e forp anning, estab ishing obGectives, deve oping a marketing strategy, and ensuringthat p ans are proper y executed'


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(c&


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iii' 5f the company operates in mid segment and comes out with ow end productas we as high end product then it is stretching both ways'

c# Pro-+ct .ine f..ing7 Adding more items in the present product ine' -orexamp e, in the year !""" 6aruti :u)uki aunched A to' his product wasbetween 6aruti +"" and 6aruti Ien' 8ere company was trying to . the gapexisting in the segment by introducing AH 7, i'e' ine . ing'

-# Pro-+ct .ine 5r+ning7 Jemoving the unpro.tab e products form the productine' oyota Kir oskar phased out their we known brand uai s when they

thought the brand was not adding va ue to the product ine'

C*STOMER PO)IC&

Defnition7

An agreement between a commercia entity and itLs c ients which states theintended re ationship between said entity and said c ients' 5t is often non

verba y binding upon purchase with the entity' 5t often inc udes things such asthe entityLs view on refunds, emp oyee and c ient standards, and the entityLsgoa s as a commercia business'

Benefts7

he potentia bene.ts to a business from providing a consistent y high eve of customer service inc ude$

M 5ncreased sa es N more ike y to try out other productsFservices tooM Customer oya ty Nmore ike y to be a source of repeat business and torecommend the business to friends and fami y

M /nhanced pub ic image N he ps bui d a brand and provides protection if there isa s ip3up in customer service


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M 6ore e4ective workforce N satis.ed customers he p create a positive workingenvironment

P+r5ose7

o estab ish programs and procedures for deve oping, imp ementing andenforcing accessibi ity standards in order to achieve accessibi ity for customerswith respect to the goods and services provided by the company'

(ERTICA) INTEGRATION


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Pro-+ction Processes


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he production process is concerned with transforming a range of inputs intothose outputs that are required by the market'

his invo ves two main sets of resources 3 the transforming resources, and the

transformed resources' he transforming resources inc ude the bui dings, machinery, computers, andpeop e that carry out the transforming processes' he transformed resources arethe raw materia s and components that are transformed into end products'

T,5es o9 Processes

M Pro:ects 3 carry out sma , unique production' /ach item or task is done byhand, one at a time' hereLs very itt e, or no, standardi)ation'

M =atch production occurs when parts of a proGect or product are processedtogether to increase e@ciency' his is sti a ower3vo ume process, but it canhand e more than the proGect'

M Mass Pro-+ction! hen vo ume continues to increase, an assemb y ineis set up' /ach worker has a speci.c ro e, or task, to comp ete'

M Contin+o+s Pro-+ction 3 hen vo ume is extreme y high and the rangeof products is extreme y sma , continuous 9ow is set up' Continuous 9ow meansthat production never stops' his approach is used primari y in factories'


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)i itation

Current techno ogy is unab e to automate a the desired tasks'

M6any operations using automation have arge amounts of invested capita andproduce high vo umes of product, making ma functions extreme y cost y and

potentia y ha)ardous' herefore, some personne are needed to insure that theentire system functions proper y and that safety and product qua ity aremaintained'

MAs a process becomes increasing y automated, there is ess and ess abor tobe saved or qua ity improvement to be gained' his is an examp e of bothdiminishing returnsand the ogistic function'

MAs more and more processes become automated, there are fewer remainingnon3automated processes' his is an examp e of exhaustion of opportunities'Oew techno ogica paradigms may however set new imits that surpass theprevious imits'

PROD*CTION CAPACIT&

Dea.ing ;it1 1ig1 ca5acit, +ti.isation

5f a .rm is strugg ing to keep up with demand, it cou d use the fo owingapproaches$

E


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cou d send components to another specia ist .rm for p ating and concentrateitse f on the other aspects of production' 6otor manufacturers haveincreasing y sourced bodywork pane s and other components throughsubcontractors, concentrating on assemb y and .nishing of vehic es'

his is a practica approach adopted by many .rms that a ows the .rm toconcentrate on what it does best' he partner .rm may be more e@cient at theoutsourced operation' 8owever, there are ogistica cha enges and costs associatedwith this and it does depend on the re iabi ity of the partner .rms'

his approach is a so used as a primary mode of expansion by many argemanufacturers' App e, for examp e, very quick y out3sourced the manufacture of i


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