Clients and Markets - Desklib

This study material by Desklib discusses the importance of value in marketing, market penetration, macro environment, and market segmentation. It explains how companies use various strategies to increase their growth and profitability. The material also includes a case study on Adidas targeting young adult women for their new product launch.

clients and markets.

TABLE OF CONTENTS
Question 1....................................................................................................................................3
Question 2....................................................................................................................................3
Question 3....................................................................................................................................4
Question 4....................................................................................................................................5

Question 1
Value in marketing refers to customer – perceived value, value is also known as the
difference between the cost and the benefit which is being received by the customer when they
purchase any products and services. Customer always wants that they may get high value of their
products. Apart from this, it has also been seen that value affects the perception of buyer,
marketers, sellers and society. By provi9ding high value to customers, sellers may earn good
profit because they can easily draw the attention of new customers along with existing one. The
value of marketing for society is also very high. The suitable marketplace can be target market in
which company wants to sell their goods and products. A part from this, value can be derived
from the market place by adopting proper marketing and pricing strategy. Whenever any
company, provides goods and services at low prices then it defiantly attracts new customers. so
the target market of the company can be a better place to gain value form the customers. it is one
of the major principle because it doesn’t matter what products and services is being given by the
company but the value is totally derived by the customers because they always think before
paying the value. For that they will check the situation of their competitors as well like at which
price they are selling similar products. so the strategies of competitors also affect buyers and
their value.
Question 2
Market penetration is a term used in market for measuring that how much total services and
products are used by the customers and clients as compared to the total estimated market of
product and services. This term is used to increase the existing product 's market value without
changing their framework. Starbucks a premium coffee product company used this strategy to
increase the price of their existing product. To increase the revenues and for the growth of
company Starbucks started to launch their new store with the use of market penetration strategy.
They decided to launch drinks and coffee at lower price to attract the customer, once they made
the customer then they set the market penetration strategy to start selling their product on their
original price with no discount so that it will help them to earn more profit. Market development
strategy is used by any organisation to develop and find new market for their current products.
Market development strategy is set for non-buying customer in targeted market. Starbucks
company wants to introduce their company in international market for that purpose they have
targeted their new market with the help of market development strategy, they have made a
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complete report on customer's buying behaviour so that it will help them to sell their product
according to their needs and wants.
Product development process is the process of developing a complete new product or
make a innovation in existing product for the consumers. It consists of several steps which
include idea generation, idea testing, concept development, marketing strategies for the product
etc. Starbucks company used product development strategy to increase the growth of their
organisation they implemented their coffee product and make innovation in their product with
this company started selling more beverages along with coffee to grab or increase new
customers. Diversification strategy allows business to explore in new market, it allows
organisations to increase their revenues and expand their business in new market as well.
Diversification strategy helped the Starbucks company to increase their annual revenues it also
gives an opportunity to the company to expand in new international market. With the help of this
strategies company started making complete report on international market to understand the
environment of their target market. After making complete report company started with the
implementation process of their new product for that purpose they also applies product
differentiation strategy or set their product on lowest price so that new customer can also find
their product affordable. Starbucks company applied all these strategies to develop the
productivity of their organisation with these strategies they are able to increase the sale of their
product it also helps them to develop a new product according to the customer’s needs and
desire, with these strategies they are able to deliver more other product along with their existing
product which also increased the demand of their product in new market.
Question 3
In the entire field of marketing, macro environment refers to the set of all the external factors and
different forces which directly impact the profitability and growth of the company. company do
not have any kind of control over there. Macro factors majorly includes demographic, economy,
culture, technology and political changes. In Titanium, these factor impact the overall decision
making of this company. Macro environmental factor increase or decrease the need of their
products and services in the market, so the management of this company has to make sure that
they form such strategies through which organisation can easily face the market challenges. As
per the decision of management production department of this company will produce products so
that they can meet the market need and also they do not have to face shortage of the products.
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But global environment will definitely impact the decision making of this company, Currently
Covid 19 is present in most of the countries so this company has to change their marketing
strategies and they have to put more focus on digital and e-mail marketing so that company do
not have to spend ample of money on traditional marketing. Apart from this, due to global
pandemic, government of many countries imposed lock downs and various restrictions due to
that this company has to shut down their physical stores for months due to which this company
faced lot of loss. So the management of this company has to focus on selling of the products
through online website and e- commerce channel so that their sells do not get hampered. so the
entire marketing strategy of this company got changed owing to macro environmental factor and
management has to make certain changes in their decision making as well.
Question 4
Market segment defines sub- group of customers which share mutual interest, age, demographic
and lifestyle. As Adidas has launched new and latest designed Women’s shoes so this company
should target young adult women. Because this age group people always try to adopt something
new and emerging so that will help the organisation to gain good growth. This company can
divide target customers as per the market segmentation variables.
Demographic segmentation
Demographic segmentation is the one thing which is being focused by the company. This is one
of the straight forward way to recognise the target customer for the new product of Adidas which
is featuring women. Demographic segment helps the company to determine the age, gender,
income, level of education, profession as well. This company is targeting young women, whose
level of income is high, and they are professional, because the prices of Adidas’s show is high as
they focus on high quality.
Psychographic segmentation
This segment focuses on the personality and interest of the customer. In this company looks for
the life goals. hobbies and lifestyle of the customer. If the customer maintains high lifestyle, then
they will definitely purchase the new product of Adidas because it will give them reputation and
goodwill in their professional life.
Geographic segmentation
It is one of the easiest segment of customer to identify by the company. This segment looks for
the country, region, city of the customer. This segment helps the organisation to reach at the
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local customer, and by this segment, Adidas may remain aware about the location and region of
their target customers. This segment helps the company to remain in touch with their customers
and also company may get feedback from their customers. so that company can know what kind
of changes they have to impose so that they may get good profit in the near future.
Behavioural segment
This is one of the most useful for all the e-commerce business as this company also sell their
product through their online website and e- commerce platform such as – Walmart, Amazon etc.
Especially in the current pandemic this company is focusing on selling the product online so that
they can enjoy the profit.
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