Segmentation of Marketing - Doc

Marketing
Essentials

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing is refer as creating awareness about product and services offered by company
to enhance it sales by building positive relationship with employees (Pike, 2015). Marketing
include conducting market research to identify needs of customer, promoting and selling
products by providing value to consumers. This report is based on “Knock-out” restaurant which
is new restaurant located in UK. This is a family restaurant which serves authentic food with
some traditional touch to attract all age group people. This assignment will include proper
understanding of marketing environmental audit for starting up new business. This also consist
of segmentation of marketing and communication mix strategy for attracting targeted audience.
MAIN BODY
Marketing is a study which help and manage marketing activities of business. Main
motive of marketing is to attract more customer to business products and services. Identifying
needs of customers and fulling it is ultimate objective of company. Knock out restaurant is also
based on this objective. This restaurant offers high quality and fresh food to customer which is
able to serve value to consumer. Its increases dining experience of customer with effective staff
services. Atmosphere and ambience of restaurant is very attractive and it is special for sports
lover and kids as it also has gaming section within restaurant. Apart from environment and food
of 'knock-out', it same some special food recipe which has traditional factor in its food. This
restaurant food prices are not too high. Price of services justify with its quality and speciality to
customers.
Environmental audit
To understand market environment in which Knock-out restaurant is dealing, it is very
important to evaluate and analyses internal as well as external environment. For conducting
environmental audit, SWOT can be used for analysing internal environment of Knock-out and
PESTLE for external environment of business.
Internal analysis
Internal market analysis can be conducted by SWOT analysis (Simkin and Dibb, 2013).
This will help in identifying strengths, weakness, opportunities and threats to company. SWOT
analyses is effective approach for environment audit.
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 Strength: Knock-out strengths is its new and refreshing innovative idea of restaurant. It
provides fresh and good quality food to customers with its unique and special taste. Team
of restaurant is well qualified, experienced and highly enthusiastic about their work
which is best strength of business. Sports zone in restaurant helps in attracting all age
group people.
 Weakness: This is a new restaurant (start-up) open in market so it is quite less known to
people. Marketing team needs to work effectively to overcome this weakness by
promoting restaurant. This restaurant havehas gaming zone inside restaurant for kids as
well as sports lover leads to minimize space of restaurant. Due to this, there is not enough
space for large gathering.
 Opportunities: Knock-out restaurant can add more healthyhealthier food in menu to
attract health conscious people. Health couscous trend matches with theme of restaurant.
This restaurant is located in centre place so it has more opportunities to get high exposure
to location. Returning of customer and loyal customers recommanding restaurant to
others can be consider as opportunities for business.
 Threat: Threats for Knock-out is factors which leads to lower business profit and market
share of restaurant. Competitors are biggest treat to company as there are many
restaurants located near by Knock-out. Some rival businesses are offering home delivery
and takeaway facilitates to customers which is an attractive strategy. Change in taste of
customer is also threat to customers as customers also like to explore new and trendy
places.
External analysis
PESTLE is a tool used to analyses and evaluate external environment of business
(Baines, Fill and Page, 2013). External market havehas huge impact on business actives of
Knock-out restaurant. PESTLE concept stands for political, economic, social, technology, legal,
environmental. Effect of this on Knock-out is mentioned below.
 Political – These factors have great impact on restaurant and food industry. Knock-out
have to consider all rules and regulation set by political and government. Political factors
will influence Knock-out business decisions by various time to time changes in health
regulation and tax reforms. Policy set by political party in food industry is to take care of
consumers health (Malhotra, 2015). Knock-out have to add healthy choices in its menu
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for customers and restaurant is responsible for adding fresh and health ingredients in
food products for by Knock-out to customers. Restaurant have to follow certain licenses
and permits for certain features to serve.
 Economic – Economic conditions of country affect restaurant industry as when economy
is not good it will directly influence purchasing power of customers (Campbell, Martin
and Fabos, 2018). People will cut out eating outside foods and in restaurants as their first
priorities will be to save money. Economic factors includes income, tax rates, interest
rate, lobar cost etc. these are external factors which can not be controlled by Knock-out
restaurant by as it affect its business in many ways. Income and tax rates are two major
factor as it determine potential of customers to afford services.
 Social – These factors are based on needs and wants of customer and society. Restaurant
and food industry is completely based on costumer’s demands and social trends. Knock-
out restaurant can not control social factor but can make decisions according to new
trends in society. For this Knock-out restaurant team needs to identify needs and wants of
customers and serve food products which is in demand by society. Nowadays social trend
is that people are more health conscious specially the young generation. So Knock-out
should that business decision by keeping social factor to increase market share.
 Technology – There are many new and innovative technology out in market to operate
more effectively and efficiently (Lane, 2016). Technological factor is an external factor
as it leads to influence and attract customers as well as helps in business operation. This
factor can give competitive edge to business. Knock-out can use more updated and
innovative technology then its competitor so increase its market share. Updated
technology will help in becoming more productive and able to serve more customers at
same time. Technology factor will help Knock-out restaurant to other offer facilities to
their customers.
 Legal - Knock-out restaurant have to face various legal law and other legal policies for
operating its business in market. These laws are made by legal party or agencies to check
supply and quality of food products in restaurant. Same legal rules and regulation has
been set which needs to be followed by Knock-out restaurant for its effective functioning
in marketplace. These rules and regulation are implemented to control provision of food
products in market. There are other legal law which for welfare of employees and
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customer. Knock-out have to maintain quality in food products and should take good care
of their customers and employees.
 Environmental – These factors are those external factor which are related to
environmental issues. Environmental factors are more concern with ecology and
atmosphere. Knock-out restaurant team is responsible for developing health environment
and contribute is solving environment problems. Restaurant owner should by well aware
of threats to environment and should follow all government rules and policy to protect
environment. Knock-out should use environment friendly way to manage waste and
should consider usage of water in their restaurant.
Segmentation and communication mix
Segmentation is a process of dividing market into small parts (Clow and James, 2014). It
includes combining smiler group of customers into one segment. Knock-out restaurant have to
understand and identify customers’ needs and divide potential customers of market into sub
group according to some set basis. Segmentation can be done on the basis of geographic,
demographic, psycho-graphic, behavioural. By dividing market in various segments, it will help
deciding most suitable segments and it will also leads to develop profiles of key segments which
will be most profitable segment for Knock-out restaurant. These segments are mentioned below
with details in order to better understand needs and wants of customers.
 Geographic segmentation- These segmentation is bases on geographic boundaries to
target customers (Baker and Magnini, 2016). Knock-out can divide customers in market
and target them on bases of theretheir geographical location. There are many ways to
divide market into sub group of customers in market on geographic location such as by
city, country, state, region, country or international region. Geographic segmentation is
one of the most important and useful segmentation of market as it will help Knock-out
restaurant them to identify its potential customers. Knock-out should target customer
who live near-by restaurant as it is easily reachable for them. This restaurant should
target population of city who work or visit in nearby location of restaurant.
 Demographic segmentation – Demographic segmentation refers to selecting and
dividing market on bases demographic variables. These segmentation are variables such
as age, gender, family size, income, occupation, religion, race and nationality.
Demographic segmentation helps Knock-out to divide large population into specific
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group or sub groups of customers. Each and every individuals hashave an age, gender,
income, occupation etc. Knock-out restaurant have to understand and evaluate different
needs and wants of customers accounting to their age. This restaurant is not only for
youngster but it is also an family restaurant for all age group people. For children it has
special game zone which attract children as well as adults.
 Psycho-graphic segmentation – These segmentation is based on customers’
personalities, lifestyle, social class etc. Psycho-graphic segmentation is a method which is
used to divide market of prospective customers by their personality traits, beliefs, values,
attitudes, interest and other factors (Mueller and et.al, 2015). Knock-out restaurant should
have to understand their potential customers and also have to look their current and past
interests. This restaurant is bases based on sports and gaming theme so it will attract
customers who have interest in games and can refresh themselves by this. This restaurant
can target customers on bases of their lifestyle, customers who like outside food or
explore new places and have potential.
 Behavioural segmentation – This segmentation is refers to the process of dividing
population on bases their behaviour and way population responds to particular thing.
Behavioural segmentation is done by splitting total market into smaller homogeneous
group based on customer buying behaviour (De Jong, Marston and Roth, 2015). Knock-
out restaurant team can divide potential customers by organizing their buying patterns of
customers like usage frequency, brand loyalty, benefits, during any occasion etc. which
influence buying behaviours of customers. This restaurant offeroffers party services to
customers which attract customers on their special occasions such as birthday,
anniversary or other parties. Knock-out can target customers who are loyal customers as
well as customers who need it.
Knock-out restaurant is targeting customer for same city as it will be easy for them reach
restaurant. Customer who work can visit this place frequently and it will help in building loyal
customers. This restaurant is offering products for age above five and gaming theme will attract
kids also. Knock-out is located in centre place which help customer to reach easily.
Communication mix
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Communication mix can be refer as methods which is used to promote business products
to target customers. Knock-out have to use various techniques to attract target customers by
informing them about restaurant products and serves. These methods are mention below.
 Advertising – This is the most effective method for marketing and communicating
Knock-out restaurant products and services. It can be done be communicating effective
message to larger number of people to deliver information about restaurant. By
advertising restaurant offering, it will help in attracting more customers towards business.
Knock-out restaurant can advertise by print media, radio, paper ads, billboards etc. this
will help in reaching large audience. Advertising should be creative and impactful to
influence customers (Pike, 2016). Advertisement of Knock-out restaurant should feature
its unique quality about services and food products in its advertisement. Advertisement
should include proper details about restaurant. This can help in getting competitive
advantage over other rival business.
 Personal selling – Personal selling can be done by direct communicating with customers.
Knock-out restaurant staff can communicate with customers to inform them about food
products and services like organizing different occasional party. Staff member
communication with customer will help in building strong relationship with them and
improve convening power. This is direct communication between customer and
restaurant team, so it will leads to providing informative communication. Personal
interaction will leads to customer more aware about food products and its ingredients.
Staff can help customer in choosing right food according to consumer requirements.
Customers can also give there direct feedback.
 Digital marketing – Internet or online marketing will help in targeting large audience at
same time (Carr, 2014). Knock-out can use online and digital marketing method for
informing business products and services in innovative way. Online marketing can also
help in personalized communication with customers. Online marking includes email,
mobile messages and other social networking sites. This will provide a scope of featuring
business in more creative ways and build brand image. This is very cost effective way in
targeting large audience. By online marketing Knock-out can market its products and
services across world and can attract tourist as it serve traditional foods also.
Boston Consulting Group (BCG)
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This matrix is a tool which is used to identify and organize business products and
services based on simple box methods (Desai, 2013). According to this techniques, Knock-out
restaurant can classify its food products and services as low or high performance depending
upon their market growth rate and relative market share. This will help in understanding which
product or service they should focus or invest and which should be diverted. There are four
quadrants into which products and services are classified.
 Stars: These are those items or services of Knock-out restaurant which is popular as well
as most profitable for business. Traditional food are specialities of restaurant and
customers purchase this most frequently.
 Question mark: Products or services in this part have high growth prospect but low
market share These products or service such as 'party offering' of Knock-out contribute
in profitability but they are not very popular in market.
 Cows: This is those which have high market popularity but does not contribute much in
profitability of business. Gaming zone of Knock-out is varyvery popular between
customers but it is not contributing in profits of restaurant. This game zone service is
attracting customers but restaurant is not take any special charges for this.
 Dogs: These are those items which are nether popular nor profitable in comparison to
other products for business. Drinks offered by Knock-out restaurant contain sugar but
many customers are heath conscious and they do not prefer these drinks.
CONCLUSION
Form the above report it can be concluded that in order to start business in hospitality
industry it is very essential to identify marketing environment audit. This will help in understand
various internal and external factors which affect marketing and business decisions. Before
targeting any market for new business, it is required to divide market in various segment.
Segmentation will help in targeting right audience with right communication mix tool. Different
communication mix strategy has been evaluated for market offering of business. Also BCG
matrix help in identifying products and services which are more popular and profitable for
business.
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REFERENCES
Books and journals
Pike, S., 2015. Destination marketing: essentials. Routledge.
Simkin, L. and Dibb, S., 2013. Marketing essentials. Cengage Learning EMEA.
Baines, P., Fill, C. and Page, K., 2013. Essentials of marketing. Oxford University Press.
Malhotra, N.K., 2015. Essentials of marketing research: A hands-on orientation. Essex: Pearson.
Campbell, R., Martin, C. and Fabos, B., 2018. Media essentials: A brief introduction. Bedford/St.
Martin's.
Lane, P., 2016. Human resources marketing and recruiting: essentials of employer
branding. Handbook of Human Resources Management. pp.23-52.
Clow, K.E. and James, K.E., 2014. The marketing research process. Essentials of marketing
research: Putting research into practice. pp.25-61.
Baker, M.A. and Magnini, V.P., 2016. The evolution of services marketing, hospitality marketing
and building the constituency model for hospitality marketing. International Journal of
Contemporary Hospitality Management. 28(8). pp.1510-1534.
Mueller, J.P., and et.al., 2015. Community‐based livestock breeding programmes: essentials and
examples. Journal of Animal Breeding and Genetics. 132(2). pp.155-168.
De Jong, M., Marston, N. and Roth, E., 2015. The eight essentials of innovation. McKinsey
Quarterly. 2. pp.1-12.
Pike, S.D., 2016. Destination marketing organizations–research opportunities in an era of
uncertainty. In Book of Abstracts-6th International Conference on Tourism.
International Association for Tourism Policy (IATOUR).
Carr, E.R., 2014. E-cigarettes: facts, perceptions, and marketing messages. Clinical journal of
oncology nursing. 18(1).
Desai, S.S., 2013. An Analysis of the Competitive Marketing Strategies of the Hospitality
Industry in UAE. IUP Journal of Management Research. 12(1).
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