Target Market Segmentation and Marketing Mix Approach

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&nbsp.In order to segment a company has to identify various target clients and deliver products that meet their needs. This is what is often referred to as needs-based segmentation. Doing such targeting is important to a firm as often they realize that they can roll out innovations without necessarily having to add value to their service. Key among most target markets would be the price as they realized with the introduction of the new brand, Xiameter. However, for companies to benefit from need-based segmentation its important for them to be well prepared for a new product line and organize its product development accordingly (Lilien and Grewal, 2012).
Success in new product roll out to a given segmentation must have the right marketing mix. It is important that the new product is of the right quality, have the ability to meet a current need and be supported by a price that resonates to the target market. Doing so enhances market acceptance and adoption as well as shorten the break-even period. As these products succeed in the market, a company’s market share continues to grow. It is important that a company keeps in touch with changing customer needs and preferences and respond to the appropriate. This, therefore, calls for in-depth knowledge of one’s customers. To understand customers a company has to pay special attention to customer feedback as well as develop a strong customer relationship management model. A company has to invest in its employees by equipping them with the right customer skills so that they can deliver exceptional service to clients and discern any setbacks in the products. This creates a medium through which ideas are exchanges and corrections made. These interactions help to develop a value-based business model where different market segments are satisfied.
Having the right marketing mix also calls for proper distribution chain so that customers can have products and services at their convenience. In addition, a company must invest in market research so that it can identify the various target clients and develop products that meet their needs and tastes. In target marketing, companies need to understand that different markets are unique and therefore some clients will be price sensitive preferring low-cost products while others are value-driven and are willing to pay a premium to get goods of superior quality. With such knowledge companies are able to fill all opportunities and whether the competition from rival companies. Giving personalized service to high net customers is also known to increase loyalty among customers. Such customers grow with the company and can take highly-priced products or services due to past experience. In addition, the introduction of new products to loyal customers has been known to have a high adoption rate than when customers are divided among the many competitors. Finally for management to benefit from the need-based segmentation there is a need for quick decision making so that emerging opportunities can be tapped before competitors to so.