The Introduction To Market Segmentation Marketing Essay
Market segmentation is where the market has been divided up into groups of customers who have similar needs. Each segment is investigated in great detail. When it comes to advertise and the most likely place the certain market segment will see the advertisement. They will also know how to design the advertisement to appeal to the certain market segment they are aiming at.
Marketing mix is a term which is used to describe all the activities which go into marketing a particular goods and services. They are often summarized as the four Ps of marketing mix which included product, price, place and promotion. For the aspect of product, this is means should apply to the product itself especially design and quality. Next, this is the price at which the product is sold. A comparison must be made with the price of competitors’ product. Besides that, promotion is mean that how the product is advertised and promoted. This is included what types of advertising media should be used. Last, price is refers to the channels of distribution that are selected.
Duermyer, R. (2012) stated that marketing plan is a business document in order to writing down the position of current market of the business as well as marketing strategy for certain term covered by marketing plan. Marketing plan actually has one year to year of life. Duermyer, R. (2012) believed that aim if make up a marketing plan is to distinctly point out what steps should undertake to fulfill the objectives of business's marketing. Marketing plan of a small business could involve a description of some competitors, strengths and weaknesses from a market viewpoint and some competitors as well as goods and services demand.
Consumer behavior refers to process of decision making and physical activities, such as evaluating, using, acquire and even disposing the product or services. Wayne, D H, Deborah, JM. (2008) stated that this is not only purchasing the good and services that get attention in consumer behavior, but the process starts much before the goods had been purchased. Similarly, consumer behavior included processes of psychological that buyer go through in know their needs, finding method to solve what their needs, determine buying decisions, create a plan, construe information, and even carry through the plan.(Wayne, D H, Deborah, JM. 2008).
Target marketing is the formulating market coverage policy processes which market segment offer an alternative opportunity for the organization or bank. The target market process is the handling of marketing mix that included a distinctive goods and services is available for every elect market segment. It included policies of formulating the market coverage that find out the market segment that unfold alternative opportunity.
A marketing plan based on SWOT and PEST analysis, market research, product, profile, and including particular market segmentation, target market, positioning and even marketing mix are describe below.
2.0 Marketing plan
Our bank strives to utilize the unique method and splashing out on specially designed wealth transfer programs to make more business with ultra-high net worth Individuals. In this case, our bank would through this method to attempt to increase wealthy Asian clients and gain more and more profit.
2.1 SWOT analysis in marketing plan
This is an ordinarily apply form of marketing analysis. It views at the internal and external environment of the bank to predict potential future performance that the bank may want to carry through in order to expand market position of the bank.
Bank was offer better services and even addition facilities for employees as well as clients. This is the one advantage of the bank to over competition. Some clients may feel pleased when get enthusiasm treated and better services by the bank. It could help to add value and make for competitive advantage.
Lack of expertise is the weakness of the bank. This issue is because of the bank is only new developing into private banking and also no experience in private banking. Hence, staffs of the bank may need to advance expertise to effectively achieve marketing aim.
Opportunities evaluate the external desirable factors that represent the reason for the bank to become prosper. The opportunities of exist in the particular market from which the bank wish to benefit is to aware brand name image. If the bank are successful to make the brand name more famous, it is more likely to have more clients and consequently to gain more profit. In order to achieve this objective, bank will carry through advertising the strengths in quality of service of the bank.
The biggest threat of the bank is competitors. This is because other private bank is more experience than our bank and one of competitor was offer high interest rate for their clients. This issue may cause some clients prefer to goes to other banks and our bank may loss some clients.
2.2 Marketing mix
The two main product feature of our private banking is included saving account as well as current account. Besides that, the other products which was involved in the marketing plan are Credit cards, home loan, Insurance, and even personal loan.
Services offer by the bank on certain product to the clients to decide the price of the product. In the aspect of pricing, our bank was create a website provide for clients who are willing to know the detailed of pricing changes or the same.
Place is the one significant factor to effect the private banking as well as successful of the marketing planning. Some clients are care about the quality of services in form of place that was location appeal, ambiance, and interiors and so on. There may lead some negative impact to the bank if the place of bank is located at a crowded market. In order to attract clients, our bank would locate the bank in excellent place and more notice in aspect of interior.
Our bank will carry through promotions which are included visualization, association, physical representation and documentation. Our bank would carry through visualization services via billboard, telecasting and advertisements. Promotion of physical representation in services could symbol their status and wealth. Documentation services could support their claims for reliability and popularity.
2.3 Market segmentation
Our bank could focus the market segmentation of loan. Auto loan and even home loan become an important part of bank lending, at the same time, our bank will provide loan for student.
The investment sector is the fast growing segment in our bank. Nowadays, many people especially wealthy people willing to have their own stock, and done some investment. Banker will prepare many more solution of market investment for clients. Our bank could provide some information via investment relate publications for clients.
2.3.3 Standard banking
Our bank promotes savings banking products and standard checking on our website home page. Banker will strive to build relationship with standard banking clients by advance packages in order to make clients gain addition value by mix savings and checking account.
2.4 Target market
Our bank is aggressively budgets for Asia-focused initiatives. Asian clients consisted mainly of entrepreneurs, and professionals. Our bank are target on those Asian, this is because one of the important business opportunity in Asia derives from the region's growing affluence and there were not less than 5 million individuals with a minimum USD 1 million net worth, with their total wealth growing 8.5 percent to USD 7.2 trillion. Thus Asian will become the only focus clients after goes into private banking.
2.5 Bank positioning
Provide some unique services for clients and to satisfy them could retain clients and also get loyalty from them. First of all should find out what is desired by the clients and consequently offer fitting services for them. By the way to satisfy them, bank is intended to launch a specially designed wealth transfer programs for baby boomer generation of ultra high net worth clients. This is because banker was already realising those Asian clients is much more care about their family.
2.6 Consumer behaviour
Clients have their own unique needs, preferences and demands in a certain segment which is better services on family value. So that bank should provide some services to satisfy them profitability. Bank must done this well only could capture the market as possible. In this case, bank could help them manage their wealth, consequently increase value of their wealth through investment and even provide high quality of services and strong security for them in order to get credit standing by the bank. Bank may be able to attract those clients upon on these services.
The marketing people divided the whole market into difference groups and categories, these are called market segmented. The business could use market segmentation to sell more product, they do this by difference brands of a product. The business also could produce various brands of a certain product to satisfy most of the market segments.
Marketing mix is base on the four Ps of marketing which is product, price, place and promotion. Each part of marketing mix has to be considered carefully to make sure that it all fits together and one part does not counteract the other.
Consumer behavior means that the aggregate of consumer decision with concern to the consumption, acquisition, and disposition of some goods and services, people, experience of activities, and even opinion of decision making issue.
Duermyer, R. (2012) believed that marketing plan is significant document that necessitate to be updated on regular foundation. In addition, marketing plans within five years could be revisited at a fix period and to cover changes of market situation, pricing issues, demand and so on.
Process of target market identifies the certain instruction the bank need to follow in conformity with realize of segmentation of the market. Michaeal, A. (2006) stated that it conduces to market positioning strategies development.
Duermyer, R. (2012) Marketing Plan. [Online] Available at: http://homebusiness.about.com/od/homebusinessglossar1/g/marketing-plan.htm [Assessed: 9 November 2012]
Michaeal, A. (2006) A Handbook Of Management Techniques: A Comprehension Guide To Achieving Managerial Excellence And Improved Decision Making. 3rd ed. United Status: Saxon Graphics publishing. P.31. [Online] Available at: http://books.google.com.my/books?id=k_TR4A68dtsC&pg=PA31&dq=target+market+definition&hl=en&sa=X&ei=QQ-RULHNBIyurAfM9IHYDw&ved=0CDcQ6AEwAg#v=onepage&q=target%20market%20definition&f=false [Assessed: 9 November 2012]
Wayne, D H, Deborah, JM. (2008)Consumer behaviour. 5th ed. America: South Western publishing. p.3 [Online] Available at: http://books.google.com.my/books?id=fk1rTxRYtY0C&pg=PA3&dq=consumer+behavior+definition&hl=en&sa=X&ei=PQWRUOPsIs3-rAeU0oG4CQ&redir_esc=y#v=onepage&q=consumer%20behavior%20definition&f=false [Assessed: 9 November 2012]
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