Fundamentals of Business Management: Customer Segmentation, Marketing Mix, and Ansoff Matrix

This report discusses the fundamentals of business management, including customer segmentation, marketing mix, and Ansoff Matrix. It analyzes Honda's STP, marketing mix, and Ansoff Matrix strategies. The report concludes that marketing is a pivotal business activity that helps organizations promote, sell, advertise, and deliver products and services into the potential marketplace.

Fundamental of
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
A detailed description of the consume segment..........................................................................3
Marketing Mix.............................................................................................................................4
Ansoff Matrix..............................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
Books and Journals:.....................................................................................................................7

INTRODUCTION
Business management can be defined as the coordination as well as organization of
different business operations. The business managers handle operations and support their staff
members reach their maximum productivity levels. Marketing is the fundamental function of any
business entity. It supports organization by promoting and selling their goods and services into
target market (Hole, Pawar and Bhaskar, 2018). It is essential that the organization should have
attractive and high quality message or content so that the masses could understood what the
company is trying to sell them. The company which is taken into consideration is Honda It is
Japanese public global automobile organization which is headquartered in Minato, Tokyo, Japan.
In 1946, the company is founded and its produces automobile products, power equipment and
motorcycles. Since 1959, it is the world’s largest motorcycle producers. The following report
will analyse the customer segmentation, brand positioning, marketing mix and strategies with the
help of Anosff matrix.
TASK
A detailed description of the consume segment.
STP is the acronym of the segmentation, targeting and positioning. This is the marketing
model which involves three steps to examine the goods and services and the manner one
communicate their benefit to certain customer segments.
 Segmentation: This is the stage in which assignment of features to the whole customer
base as well as splitting them into different audiences based on data acquired. Customer
can be segmented into many types (Hanson and Kalyanam, 2020). In addition to Honda,
two of them are discussed below:
o Behavioural segmentation: This is the segment which determines how the
customers interact with the brand, how often they make purchases, what they
browse and many more. In context to Honda, customers who sees and desires
good mileage, efficiency, power and comfort in the products and services can
come into this segmentation.
o Demographic segmentation: In this segment, the customers have been divided
on the basis of their age, education level, gender, occupation and many more.
Customers of the chosen automobile brand are the middle income group people

who are seeking for vehicles whether it is four wheelers and two wheelers which
fits their budget and pocket and the same time worth their money.
 Targeting: The main purpose is to look at the segments that have been created before
and ascertain which of those segments are most possibly to make desired conversions. In
addition to Honda, it serves mainly their products to the middle class people who can
easily afford their products. They target these customers on the regional basis (Lahtinen,
Dietrich and Rundle-Thiele, 2020). Also, it has targeted the age group between 30-51, but
in the past few years, it also touched new market segment for the young people and
young families as well.
 Positioning: The following brand is positioned itself among close competitions such as
Ford, Toyota, GM and many more. It has gained the position as a value based
organization who aims to improve livelihood of people globally and contribute them the
power to enjoy their life. The promotion technique that the brand mainly exploits are
advertisements, Tv commercials, newspaper ads and many more.
Marketing Mix
The marketing mix explains to the set of tactics, plans and actions that an organization
utilised to promote its brand or good or service in the potential market. It involves 4Ps such as
product, price, promotion and place. In addition to Honda, the following is the explanation of
those elements:
 Product: Honda is the largest manufacturer of motorcycles throughout the world
which has brought many attractive car, together with bike models to the
marketplace (Camilleri, 2019). It provides products such as motorcycles, big bikes
and scooters. Some of them are Honda Accord 2008, Honda Jazz, Honda CR-V,
Honda Civic, Honda City 2008, XBlade Bs-VI, Livo BS-VI, Activa 125 BS-VI and
many more.
 Price: The pricing strategy used by the organization by keeping their main target
segment that is middle income class people. So, the company goes ahead according
to that. They offer their products and services with a reasonable pricing strategy.
They have also made big manufacturing hubs in evolving nations and expot bikes
in evolved nations where the production cost is higher. Moreover, it also produces

luxury and sport bikes which are priced at the higher. Hence, in order to gain big
market share they charge low prices on their products.
 Place: It is found that it has a direct contact with dealers which does not contain
any middle party. The dealers sell the products and services directly to the
customers and therefore, there is a good communication between the dealers and
customers. Moreover, the production distribution of the business is done by only
authorized dealers (Shah and et. al., 2018). In showrooms, there are several
products have been provided across various locations in various cities all over the
nation.
 Promotion: Honda uses many promotional techniques to promote their brand,
together with its offerings, it does aggressive marketing and advertising on TV as
its exhibits to a big audience. It has launched ads with a range of themes to gain the
customer attraction. It has also shown the dream of founder of Honda of making
high quality cars. They also use social media marketing for their brand positioning.
Ansoff Matrix
Ansoff Matrix is the framework used by teams of management in order to make plan and
strategy to evaluate growth initiatives. This also helps in analysing the risk associated with
various growth strategies. In addition to Honda, the following is the explanation of four
strategies:
 Market penetration: In comparison with other strategies, it is identified that it involves
the least risk. In order to sell more of the current goods and services, the company sells
its present goods and services in the current market for the purpose of having new
customers for the brand. This strategy is used by the organization for the purpose of
attaining market share and competitive benefits in the same market.
 Market development: It is another least risky strategy where the management team of
the organization attempts to capture new market share with their current goods and
services at which they are best to gain customer attention and attraction. The organization
can expand its market share on a regional basis, national or even international basis.
There is a need to conduct good market research where company can gain its new
customer base.

 Product development: With the help of this strategy, the company increases its current
product portfolio by using creative and innovative techniques. They can create new
products for the attraction of customers as they can get bored with the regular and current
products and services (Khajezadeh and et. al., 2019). Or, they can use innovation in the
current product line so that they can also gain competitive benefits.
 Diversification: This strategy involves the highest risk for the business organizations.
Through this plan, the company creates new goods and services and delivers the same in
the new potential market where they can acquire wholly new customers for their
business. It also involves deep market research in order to know the potentiality fo the
target market.
In addition to Honda, the recommended future strategy for growth can be market
development strategy where the company can increase its market share by serving its current
goods and services in the whole new market. By performing good and deep market research,
they could know about the regional, national or international expansion. Also, the company can
hire local person of the new place where they can give insights and information about the likes
and dislikes of the customers. It helps in making better growth strategy for the respective
business.
CONCLUSION
From this report, it can be concluded that marketing is one of the pivotal business activities
which aims to promote, sell, advertise and deliver products and services into the potential
marketplace. With the help of marketers and an effective marketing team, the organization can
better segments its customers, it will also help in brand positioning and satisfying the customers
in the most effective way. Marketing mix is the mixture four elements that are product, price,
promotion and place. By analysing those elements, the company can acquire customers and gain
market in a productive way. Ansoff matrix is covered with four plans such as market
development, product development, market penetration, along with diversification. All those
strategies are covered with risks and benefits so the organization needs to examine them.

REFERENCES
Books and Journals:
Hole, Y., Pawar, S. and Bhaskar, M.P., 2018. Service marketing and quality
strategies. Periodicals of Engineering and Natural Sciences (PEN), 6(1), pp.182-196.
Hanson, W.A. and Kalyanam, K., 2020. Internet marketing and e-commerce.(Student ed.).
Thomson/South-Western.
Lahtinen, V., Dietrich, T. and Rundle-Thiele, S., 2020. Long live the marketing mix. Testing the
effectiveness of the commercial marketing mix in a social marketing context. Journal of
Social Marketing.
Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Shah, A. and et. al., 2018. Multiple surface segmentation using convolution neural nets:
application to retinal layer segmentation in OCT images. Biomedical optics express, 9(9),
pp.4509-4526.
Khajezadeh, M. and et. al., 2019. Application of neural network in portfolio product companies:
Integration of Boston Consulting Group matrix and Ansoff matrix. International Journal of
Economics and Management Engineering, 13(6), pp.809-813.
Sukma, D., Lubis, P.H. and Utami, S., 2019. Analysis of Marketing Strategy of Minyeuk Pret
Using STP, Ansoff Matrix, and Marketing Mix.
Kurniawan, D., Iswahyudin, M.D. and Suciati, T.R., 2020. SWOT Analysis and Ansoff Matrix in
Creative Food Industry Business Development: A Study on Creative Food Business
“Komala”. Open Access Indonesia Journal of Social Sciences, 3(2), pp.128-136.
(Sukma, Lubis and Utami, 2019) (Kurniawan, Iswahyudin and Suciati, 2020)