Principle Of Marketing/Management Lecture Notes PDF

PRINCIPLE OF MARKETING/ PRINCIPLE OF MANAGEMENT 1st Semester 3rd Stage Assit. Lecturer Haneen Khalid Dany MSc. Information Technology Management THIS LECTURE Segmentation of the Market Defining segments and segmentation of the market, targeting and positioning of...

PRINCIPLE OF MARKETING/ PRINCIPLE OF MANAGEMENT 1st Semester 3rd Stage Assit. Lecturer Haneen Khalid Dany MSc. Information Technology Management THIS LECTURE Segmentation of the Market Defining segments and segmentation of the market, targeting and positioning of products WHAT IS MARKET SEGMENTATION Market segmentation refers to the aggregating prospective buyers into groups or segments with common need and who respond similarly to the marketing action. Market segmentation can help companies to target just the people most likely to become satisfied customers of their products or services 4 Types of market segmentation 1. DEMOGRAPHIC SEGMENTATION splitting the audience based on observable , people based differences, like, age, marital status, family size, gender, education, income, ect. Positive benefit: the information is relatively easily accessible, an low cost to obtain. To gather demographic data 1. ask the customer directly 2. send or third party data provider 2. GEOGRAPHIC SEGMENTATION Splitting the market regarding the location, it help companies better understand their need and enable it to send out location specific ads. It splitting depending on : 1. country, state, zip code, 2. climate, population, density. 3. urban, suburban, rural. Example: showing warm clothes ads for people who lives in cold countries, and the opposite for those who lives in warm countries. BEHAVIOR SEGMENTATION Divide costumers depending on their behavior patrons they interact with the company. It studies the behavioral trails of consumers, which includes their knowledge of , attitudes toward, respond to a product, service, promotion, or brand. 4 types of behavioral 1. purchasing and usage behaviorsX 2. occasion purchasing 3. benefit sought 4. Customer loyalty PSYCHOGRAPHIC SEGMENTATION Deals with mental and emotional feelings of the consumers. Example:  personality traits Interest Beliefs values Attributes Lifestyle Understanding theses aspects of your customers help you to create a continent that appeal more perfectly Example is the luxury brands that customize HOW TO IMPLEMENT MARKET SEGMENTATION 1. Define your market: is there a need for your product or service? Is the market large or small? Is your brand suits the market place? 2. Segment your market: decide which types of 4 market segmentation, but remember most of the brand use a combination. 3. understand your market: conduct preliminary surveys, focus group, ask questions related to the segments chosen, etc. 4. Create your customer segments: analysis the responses from your conduct survey to highlight which customer segment are most relevant to your product or services. 5. Test your marketing strategy: test your finding on a target market using conversion tracking to see how effective it is. BENEFIT OF MARKET SEGMENTATION i. Increase resources efficiency: allow managers to focus on certain demographics of costumers. Example: promotion a a product depending on customer age: Product: A fitness app. Younger Audience (18-30 years):  Message: Focus on high-intensity workouts, body sculpting, and social sharing features.  Platform: Instagram, TikTok, and YouTube, with influencer collaborations.  Tagline: "Stay fit, stay connected! Workout anytime, anywhere." Older Audience (50+ years):  Message: Emphasize low-impact exercises, health benefits, and easy-to-use features.  Platform: Facebook, email newsletters, or traditional media like TV.  Tagline: "Feel strong, feel young—fitness for life at every age." BENEFIT OF MARKET SEGMENTATION ii. Stronger brand image: Considering which message to be more intentional for targeted audience. Example: Tesla: Brand Identity: Innovation, sustainability, and luxury. Why It Works: Tesla has crafted a strong image by being synonymous with cutting-edge electric vehicle technology and sustainable energy. By consistently promoting green energy solutions and revolutionary automotive designs, Tesla has become a symbol of modern luxury with a strong commitment to environmental responsibility. Tesla's innovative marketing strategy includes minimal traditional advertising, relying on CEO Elon Musk’s presence, social media, and word-of-mouth to build a loyal following. BENEFIT OF MARKET SEGMENTATION iii. Greater brand loyalty: build a long term relationship with the company Example: Disney's annual passholder programs for its theme parks encourage frequent visits, and its Disney+ streaming service connects generations of fans to its vast entertainment catalog. These consistent, positive experiences build a lasting bond with the brand. Iv. Stronger market differentiation: gives the company the opportunity to exact message to the market and the competitors to create product differentiation. Example: Tesla provides Electric cars save on fuel and maintenance costs compared to traditional gas-powered vehicles. BENEFIT OF MARKET SEGMENTATION V. better targeted digital advertisement: develop on company strategy and plan to Maximized Profit Potential. Example targeting people depending on the customer location to hunt customers willing to pay more for certain products or services. LIMITATION OR DISADVANTAGES 1. Legal and Ethical Risks : Collecting and using detailed customer data to create segments can raise privacy concerns 2. Inflexibility Since the market is change rapidly and the innovation develops its hard to keep changing the market strategy. 3. Data Limitations :If the data is outdated or incorrect, the company may target the wrong segments, wasting resources and missing potential customers. 4. Complexity in Management: Managing different marketing campaigns, pricing strategies, and product variations for various segments adds complexity to business operations. It requires careful coordination across departments like marketing, sales, production, and customer service. And many other limitations. THANK YOU Any Question?