Strategic Marketing: Implication of Market Segmentation and Targeting for Evaluation of Potential Consumers

This article discusses the strategic marketing process and its importance in achieving organizational goals. It focuses on the case of Bentley Motors and explores the recommendation of products/services, evaluation of market-entry modes, and the implication of market segmentation and targeting for potential consumers. The article also highlights the application of Porter's generic strategies for competitive advantage.

Strategic
Marketing

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Recommending product/ service for an organisation with macro-environmental factors.......1
2. Evaluating the three modes of market-entry which is suitable for business in competitive
market..........................................................................................................................................3
3. Implication of market segmentation and targeting for evaluation of potential consumers....5
4. Applying Porter's generic strategies as competitive advantage to sustain in perfect
competitive market......................................................................................................................7
CONCLUSION................................................................................................................................9
RECOMMENDATIONS.................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
The strategic marketing is referred as the process through which companies compete with
their marketing strategies to compete from its rivalries through internal strength and external
opportunities. This leads to accomplish organisational goals and objectives efficiently with the
motive of consumer satisfaction through competitive advantages. The client of Ashanti
Marketing Solutions Limited (AMS) is Bentley Motors that has been selected for this project
(Aghazadeh, 2015). Bentley Motors is the world’s most wanted luxury car brand which is
expanding its business in England (Crew) with new Bentayga Speed that is world’s fastest
production of Support Utility Vehicle (SUV). This project covers the product of clothing sector
which is affected by the factors of macro-environmental factors. It further determines three
modes of market-entry which creates ability to sustain in competitive market. This also applies
market segmentation and targeting for their potential consumers. Additionally, it implements
Porter's generic strategies as their competitive advantage in perfect competition market for
achieving success.
MAIN BODY
1. Recommending product/ service for an organisation with macro-environmental factors
The Bentayga Speed of Bentley Motors focuses on enlarging their consumers in global
market. The strategic marketing is essential in capturing global market through proper utilisation
of all scarce resources effectively which leads to achieve desired result efficiently. The Bentayga
Speed is fitted with 626 horsepower W12 engine; the 2020 Bentley Bentayga Speed is capable of
reaching an incredible top speed of 190 mph. It is the world’s fastest Support Utility Vehicle
(SUV) for delivering an unmatched balance of phenomenal power and exquisite level of
craftsmanship. This further provides invigorating driving experience with both thrills and
captives by exploring its product in England (Crew) with new feature of Bentayga Speed in
Bentley Motors. This leads to implicate various determinants of macro-environment on the basis
of Pestle analysis for Bentley Motors which are as follows:-
PESTLE Analysis:- This states that it is a framework which determines the pros and
cons through macro-environmental factors. The managers of Bentley Motors promote their
Bentayga Speed by positioning it to their potential consumers that enlarge customers and result
in maximising revenue and profitability ratios. The 2020 Bentley Bentayga Speed is considered
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as the World’s Fastest Support Vehicle Utility (SUV). These macro-environmental factors are
discussed below:-
 Political factors:- This factor consists of elements which are government rules and
regulations, political stability, corruption, foreign exchange trades, nation education
system, tax policy, etc., which affects the stability of an organization (Bang, Joshi and
Singh, 2016). The government of United Kingdom most probably remain same as it does
not change political leaders which are beneficial for managers are maintaining their
strategic decision procedure. It further creates opportunity for growth and stability of
business in perfect competition market by achieving its short and long-term goals. The
managers of Bentley Motors are favourably affected as they have to follow various legal
actions that are to be processed in accordance with rules and regulations of political
leaders. This creates positive impact on organization as it does not changes rules and
regulation imposed by government.
 Economical factors:- The elements included in this factors are interest rates, law,
policies, wages, foreign exchange rates, etc., which affects directly or indirectly the
business goals. The managers of Bentley Motors are positively impacted by economic
factors as it enable them to create job opportunities by hiring labours that improve
efficiency (Cross, Belich and Rudelius, 2015). It negatively impact in consumption of
Bentayga Speed as economic change in foreign exchange rates affects the demand of
customers because in inflation price of cars cost high which leads to reduce the value of
money. The company can improve this threat by controlling its internal expenses which
result in least cost of cars that is consumable by customers to enjoy their experience in
driving cars.
 Social factors:- This factors consists of determinants that are health and safety issues,
consumer services, religion, demographic conditions, etc., which affects business
strategies. The managers of Bentley Motors are positively affected as they are able to
more consumers which increase support and loyalty and develop the ability to remain
stable in competitive market. It creates opportunity for Bentley Motors to develop
relation with their customers by supplying them qualitative featured products at least cost
which result in maximisation of revenue and profits.
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 Technological factors:- This factors includes elements which are innovation,
automation, incentives, new technology, etc., that are favourable for an organization.
The managers of Bentley Motors are positively affected with this factor as they have the
ability to research and develop new technology which leads to increase efficiency for an
organization (Davari and Strutton, 2014). It facilitates Bentley Motors to utilise various
technologies, softwares and machines that leads to manufacture and build product with
unique features. This attracts large number of customers to purchase the car and to build
their image and reputation in society.
 Legal factors:- This elements is described on the basis of legal and lawful obligations,
consumer protection rights, employment laws, health and safety measures, ethos, norms
and code of conduct, etc., which are governed by government in order to trade
successfully and ethically. The managers of Bentley Motors are negatively impacted by
changes in legislations which create delay in achievement of success. It unfavourably
affects the business of Bentley Motors by focusing on consumer protection rights as to
reduce pollution from car which adversely affect health of population growth. The
managers of Bentley Motors control their threat by following the legal regulations
imposed by government of United Kingdom by focusing on consumer protection rights
for managing health and safety issues.
 Environmental factors:- These factors are characterized as increasing scarcity of raw
materials, environmental pollution, weather, climate, tourism, infrastructures,
agriculture, etc., which affects the business environment. The managers of Bentley
Motors are negatively impacted by the growing awareness of consumers which fluctuates
their demands according to its climate and surroundings as nowadays they are health
conscious. It adversely affects the managers of Bentley Motors for controlling
environmental pollution from the car which creates bad atmosphere for people to survive
in polluted environment. The responsibility of Bentley Motors is to expand business in
England by its specialised feature of Bentayga Speed with implementing unique feature
of less pollution that attracts large number of buyers to purchase it.
2. Evaluating the three modes of market-entry which is suitable for business in competitive
market
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Market-entry:- This strategy focus on planning the distribution and delivering their
finished products to its end-users. It is referred as the process to establish a new entity for new
product and target market (Edvardsson and et.al., 2014). The managers of Bentley Motors focus
on market entry to explore their Bentayga Speed of SUV for expanding its business which leads
to reduce delay in goal achievement. The four modes of market-entry are classified below with
reference to which are as follows:-
 Strategic Alliances:- It is considered as an agreement between two or more business to
form an organization with independent entity. This declines the legal partnership entity,
agency and corporate affiliated relationships. This is a partnership agreement between
both organisations in which they are able to derive value from engagement. The
managers of Bentley Motors form strategic alliance to generate brand value by promoting
and positioning their product to its potential consumers.
 Mergers and Acquisitions:- This is referred as the process of merging two business to
form one organization in order to achieve organizational goals and objectives effectively
and efficiently. The acquisition is described as the process to acquiring one business by
another which leads to acquire one organization to another. The mangers of Bentley
Motors focus on merger and acquisitions which is adopted by their rivalries that increase
high competition. This leads to restructure and rebuild the strategic decision making of an
organization for increasing market share and profits (Kumar, Sharma and Gupta, 2017).
 Joint Ventures:- It is an agreement in which two or more agrees to share their resources,
risk and ownership with the objective to accomplish specific task to maximize their
market share. The managers of Bentley Motors can use this to share assets and liabilities
for reducing debts of other business by emerging in large business.
 Foreign Direct Investments:- This is the investment made by one organization in
another country with the aim to utilize scarce resource effectively which results in goal
achievement efficiently. The foreign direct investment commence when an investor start-
up with foreign business operations and assets. The managers of Bentley Motors focus on
this investment as it leads to invest with least cost which generates its high capital that
leads to maximise its revenue and profits.
From the above discussed market entries of organisation, the managers of Bentley Motors
focus on merger and acquisition of entry. This is beneficial for the managers to increase its
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competitive strategies by restructure and developing new ideas to compete with competitors
through maximising its market share.
3. Implication of market segmentation and targeting for evaluation of potential consumers
Market Segmentation:- This segmented marketing is considered as selecting the small
target market from the whole market in order to achieve their desires for achievement of success.
It leads to accomplish organizational goals and objectives efficiently with maximization of
revenue and profits (Liebl, 2015). The managers of Bentley Motors implement this market
segmentation to meet the needs of small target market for their high satisfaction level and
consumer loyalty. There are different types of market segmentation are explained below which
are as follows:-
 Geographic segmentation:- It is described as the process to discriminate potential
consumers according to their interest, taste and preferences which vary according to their
cities, states and nations. It is important for producers to determine their consumer
requirements which are to be fulfilled by the quality of product to provide satisfaction.
The managers of Bentley Motors can use this market segmentation to analyse the needs,
desires and wants of consumers which leads to satisfy their demands. This leads to
increase market share by enlarging consumers to purchase more of their products.
 Demographic segmentation:- This market segmentation is referred as the process to
segregate market according to their age, gender, qualification, size of family,
occupational income, etc., which discriminate them from the whole market. This form of
segmentation is most important for producers to determine their individual needs, desires
and wants on the basis of demographic element (McDONALD, M.A.L.C.O.L.M., 2016).
The managers of Bentley Motors can use this segmentation in order to recognise the
demands of potential target market which are to be fulfilled by the qualitative product
which provides them high satisfaction.
 Psychographic segmentation:- This market segmentation is different from geographic
and demographic segmentation which varies according to its intrinsic traits of consumers
that involves values, interests, attitudes, lifestyles and opinions. The producers target
their potential consumers through surveys, interviews, and case studies. The managers of
Bentley Motors can use this segmentation to examine their target market according to
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their various livelihood, cities, values, etc., which leads to produce their model of car for
comfort of consumer which leads to achieve equilibrium point (Miles and et.al., 2015).
 Behavioural segmentation:- This market segmentation is explained as similar to
psychographic segmenting which focus on some certain reactions or pattern of decision-
making. This leads to examine and determine the various styles through which consumer
utilise the product and achieve its satisfaction level. The managers of Bentley Motors
target their end-users to specifically utilise the product in the best way which leads to
fulfil their demand and producers to achieve success.
From the above discussed segmented market, demographic segmentation should be
adopted by the managers of Bentley Motors which varies according to their income, education,
etc. This plays an effective role in achievement of goals and objectives by targeting consumers
through segmenting them for their specialized product.
Market Targeting:- This target marketing is referred as the sub market of total market to
target specific number of customers, groups which leads to achieve consumer satisfaction. It is
the capability of positioning brand awareness to the target market for qualitative products at least
cost effectiveness which attracts them to purchase more of their goods and services. The
managers of Bentley Motors target their potential consumers to increase sale, consumer support
and consumer satisfaction level for achieving goals efficiently which leads to increase market
share (Tomczak, Reinecke and Kuss, 2017).
 Undifferentiated marketing:- The consumers are targeted by producers as they are the
king of the organisation. The manufacturers focus on the taste and preference of
consumers to meet their demand. This leads consumers to purchase their product which
increase their satisfaction level with least-cost effectiveness. The managers of Bentley
Motors focus on target market to maximise their revenue, profits and market share.
 Differentiated marketing:- This is also termed as multi-segment marketing, which is
referred as exploiting or generating the specialized marketing mix for each potential
target market. This leads producers to develop their innovative thinking for strategic
decision-making, which results in meeting the needs of their consumers. The managers of
Bentley Motors can use this target marketing to meet the requirements of their whole
end-users by providing them distinctive marketing mix for maximization of sales volume,
high profits with high market share.
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 Focus or concentrated targeting:- This target marketing is also known as concentrated
targeting. The organization must target their consumers through single marketing mix
which leads to satisfy their consumers. The motive of business is to segment consumer
for their design, development and specialized marketing mix (Viljoen, Roberts-Lombard
and Jooste, 2015). The managers of Bentley Motors can use this targeting for utilization
of scarce resources by meeting their needs of consumers over several different segments.
These leads to focus consumers through research and development for meeting their
requirements as they are the king for business by managing activities for their high level
of satisfaction.
 Customized marketing:- This target marketing which is described as the producers in
positioning their product to potential consumers by advertisements, marketing research,
architects, etc., This vary according to their specialized consumers with their specific
needs and desires. The managers of Bentley Motors focus on their buyers through
discussing them about their requirements personally with the help of questionnaire and
survey. This leads organization to accomplish competitive advantages to remain stable by
competing from its rivalries.
From the above mentioned market targeting, the managers of Bentley Motors should
adopt focus or concentrated target marketing as the business must analyse its strategies through
single marketing mix. This leads to increase efficiency in goal accomplishment with
maximization of revenue, profitability ratios and market share for their rapid growth.
4. Applying Porter's generic strategies as competitive advantage to sustain in perfect competitive
market
Perfect Competition market:- It is the market in which there are large number of
suppliers sell their products to large number of buyers which increase competition for business to
sustain and survive in market. This is an ideal market for producers and consumers as it provides
symmetric information, no transaction costs, etc., which is against and diametric of monopoly
market. The managers of Bentley Motors want to enter in perfect competition market as they
have their specialised feature of Bentayga Speed that is world’s fastest production of Support
Utility Vehicle (SUV), through which they can attain success. This emphasize on stability of
organisation to gain competitive advantages that helps to contend its rivalries from their internal
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strength and external opportunities. It increase the capability of managers to maximise revenue,
profits and market share.
Competitive advantage:- This is referred as the procedure in competing with rivalries
through their competitive advantage of internal strength and external opportunities. This is
helpful for business to determine its capabilities over internal weakness and external threats. The
managers of Bentley Motors this to analyse and determine their strategies as compared to their
competitors. This leads to achieve success and maximise of revenue and profitability ratios.
These competitive advantages of business are explained on the basis of Porter's generic strategies
which are as follows:-
Porter's Generic Strategies:- This strategy is referred as the process which determines
the capacity of an organisation to achieve success with its competitive advantage that results in
increasing market share (West, Ford and Ibrahim, 2015). This strategy consists of cost-
leadership, differentiation, cost and differentiation focus. The managers of Bentley Motors
implement this strategy to maximise their revenue by enlarging consumers with their increasing
profit-margins. These strategies are further described as under:-
 Cost Leadership:- This is explained as the process to produce goods and services with
least-cost effectiveness which attracts consumers to purchase more of their products that
results in maximisation of revenue and profits. The managers of Bentley Motors can use
this strategy to enlarge consumers in global market with their various specialised
features of cars. The car produced with Bentayga Speed consists of less cost which
further benefits producers to charge least-cost effectiveness at which they maximise
profit with satisfaction to consumers that increase sale.
 Differentiation:- It is the procedure to produce specialised product for their specialised
target market which results in goals achievement by developing the product to fulfil their
desires and wants. The managers of Bentley Motors can use this to differentiate their
target market with specialised features, functions, durability and brand image which
attract consumers for its high-quality. This leads to achieve organisation goals and
objectives effectively and efficiently.
 Cost Focus:- This is referred as the process to minimise the cost for the small target
market. This is the capacity of producers in supplying products with high quality at least
cost to attract their consumers. The managers of Bentley Motors can use this to increase
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consumer relationships which results in their loyalty and support to achieve success. It
creates opportunity to attract medium and high level of income consumer as they are also
capable to purchase the car.
 Differentiation Focus:- It is described as the process to differentiate the small target
group. This focus on consumers with their specialised needs by delivery special product
for fulfilling their desire which results in goal achievement. The managers of Bentley
Motors can use this strategy to discriminate their niche target market for their
differentiated product on which consumers are ready to high prices or premium amount.
The organisation produce differentiated product as it attracts with many varieties
available of the same brand to select in accordance with their taste and preference.
From the above discussed generic strategies, the Bentley Motors must adopt the cost
leadership strategy which focuses on least-cost effectiveness that attracts consumers to purchase
more of their cars. It also enlarges consumers for their specialised product which increase high
level of satisfaction for potential market through luxurious, comfortable and safe driving. It
further enhance market share which leads to increase in consumer support and loyalty. This
provides opportunity for growth and stability to compete with rivalries in global market by
achieving success.
CONCLUSION
From the above discussion it has been concluded that strategic marketing plays the major
role of competitive advantages in competing from its rivalries. The organization focus on macro-
environmental factors of political, social, economic, technological, legal and environmental
which impact instability of business. Three modes of market-entry are Strategic Alliances, Joint
ventures, Foreign Direct Investments, merger and acquisitions. This further focus on
segmentation and targeting market for analysing needs and wants of potential consumers for
their loyalty and support. Apartly, it implements Porter’s generic strategies as competitive
advantage for its sustainability in perfect competition market.
RECOMMENDATIONS
From the above prescribed project it is recommended that strategic marketing in the
Bentley Motors with Bentayga Speed for its Support Utility Vehicle must expand business in
England (Crew). The organisation must enlarge their consumers through several types of market
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segmentation and targeting with their entering strategies. This leads to gain competitive
advantages to compete with rivalries and to sustain in global market for their Bentayga Speed of
SUV. The Bentley Motor is recommended to attract their consumers through their most popular
car by positioning their brand to its potential consumers in accordance with Porter's generic
strategies which leads to maximise sale, profits and their market share.
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REFERENCES
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