Every firm wants to maximize its earnings and profits as it offers various products and services to its customers therefore leading to high levels of satisfaction. In order to guarantee the top quality products meet the specific needs of the target consumers, it is essential to understand the customer first. It is however impossible to have any product that satisfies everyone since people have different tastes and preferences which influence their liking or disliking of any commodity. It would be impractical to design unique products for each and every person therefore the need to standardize some commodities which are targeted for certain group of people which increases the likelihood of satisfaction. Every company should have a market segmentation strategy in place if it intends to grow its customer base and level of utility.
Firms find it easier to manufacture group or customer specific commodities as opposed to standardized ones since they can learn these people better. They may make products which trigger demand by making life easier for consumers. Satisfied consumers have a high likelihood of repurchasing and referring others which cause increases in turnover and profitability.
An understanding of the population which is expected to consume a certain product guides firms in making sufficient quantities of a certain commodity. This eliminates incidents of stock outs. This leads to increased reliability in the supply of various products and prevents firms from making excessive quantities which would otherwise only increase storage costs.
The location of factories for producing consumables and distribution centers for ensuring those products reach the targeted consumers is very important. Many people buy products just because they are conveniently located, probably in their nearest shop. Having the processing or manufacturing plants located close to source of raw materials minimizes transport costs which are passed to consumers in form of lower prices.
The marketing strategies employed are dependent on the type of targeted customers in terms of preferences. For instance, when targeting the youth, many firms use entertaining ads to communicate their intended message. This minimizes incidents of designing the wrong ads or campaigns which may be considered inappropriate by the targeted population.
Organizations sometimes have to use brand ambassadors to market products among certain groups of people without necessarily involving none members. They therefore can maximize returns through reduced promotion cost and high response since first hand response may sometimes be needed. Samples of products are also given to the intended consumers.
Organizations venture to know their customers better by doing surveys which influence on which brands to make. Improvements on existing products can best be done by understanding what the consumers go through while using such items. As a result, various items are specially made to satisfy some specific need which certain customers have therefore high levels of satisfaction.
Before developing any market segmentation strategy, firms should ensure it is in line with its objectives otherwise it would be considered ultra vires. In addition, any decisions made should be verifiable by having relevant documents supporting it. Any failures which may result due to making decisions based on assumptions are minimized.
Firms find it easier to manufacture group or customer specific commodities as opposed to standardized ones since they can learn these people better. They may make products which trigger demand by making life easier for consumers. Satisfied consumers have a high likelihood of repurchasing and referring others which cause increases in turnover and profitability.
An understanding of the population which is expected to consume a certain product guides firms in making sufficient quantities of a certain commodity. This eliminates incidents of stock outs. This leads to increased reliability in the supply of various products and prevents firms from making excessive quantities which would otherwise only increase storage costs.
The location of factories for producing consumables and distribution centers for ensuring those products reach the targeted consumers is very important. Many people buy products just because they are conveniently located, probably in their nearest shop. Having the processing or manufacturing plants located close to source of raw materials minimizes transport costs which are passed to consumers in form of lower prices.
The marketing strategies employed are dependent on the type of targeted customers in terms of preferences. For instance, when targeting the youth, many firms use entertaining ads to communicate their intended message. This minimizes incidents of designing the wrong ads or campaigns which may be considered inappropriate by the targeted population.
Organizations sometimes have to use brand ambassadors to market products among certain groups of people without necessarily involving none members. They therefore can maximize returns through reduced promotion cost and high response since first hand response may sometimes be needed. Samples of products are also given to the intended consumers.
Organizations venture to know their customers better by doing surveys which influence on which brands to make. Improvements on existing products can best be done by understanding what the consumers go through while using such items. As a result, various items are specially made to satisfy some specific need which certain customers have therefore high levels of satisfaction.
Before developing any market segmentation strategy, firms should ensure it is in line with its objectives otherwise it would be considered ultra vires. In addition, any decisions made should be verifiable by having relevant documents supporting it. Any failures which may result due to making decisions based on assumptions are minimized.
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