Analyzing Marketing: Customer Loyalty and Segmentation Impact

This report provides an in-depth analysis of marketing management, focusing on the impact of effective target marketing through market segmentation and the influence of integrated marketing channels on long-term customer loyalty. Using the Australian Tourist Commission (ATC) as a case study, the report examines how market segmentation, including demographic, psychographic, geographic, and behavioral approaches, enables organizations to identify customer needs and tailor products and services accordingly. It highlights the benefits of targeted communication, resource allocation, and increased market competitiveness. Furthermore, the report explores how integrated marketing, with its unified messaging across various channels, enhances brand recognition, builds trust, and fosters customer loyalty. The analysis emphasizes the cost-effectiveness and efficiency gains from consistent messaging and the positive impact on internal morale. The study concludes that both market segmentation and integrated marketing are crucial for achieving long-term customer loyalty and driving organizational growth by creating a better customer experience and fostering stronger brand-customer relationships.

Marketing Management

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analysis of Effective Target Marketing Through Market Segmentation....................................3
Analysis of Integrated Marketing Channels' Impact on Long Term Customer Loyalty.............6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The process a company carry out to reach organizational goals and satisfy individual by
planning and execution of the pricing, promotion and distribution of ideas, products and services
is identified as marketing management. This process helps to attract more customers and reach
goals like increase in sales, creating brand image and recognition and to introduce new products
or services in the market.
In the following report, through case study of Australian Tourist Commission (ATC) the
impact of effective target marketing through market segmentation and integrated marketing
channels on long term customer loyalty and driven growth of different organization will be
identified and analysed.
MAIN BODY
Analysis of Effective Target Marketing Through Market Segmentation
Market segmentation divides the target market to approachable groups for easier and
impactful satisfaction of customers (Elliott, and Galeotti, 2019). Market segmentation is
generally divided into four categories that are:
 Demographic: The market is segmented on the basis of age, gender, race, religion,
occupation, level of education, nationality and income.
I
llustration: Market Segmentation
(Source: What Is Market Segmentation? What Type Suits Your Business? 2021)

 Psychographic: Similar to demographic however, deals with mental and emotional
attributes of the customers.
 Geographic: This segmentation is done on the basis of location, such as city, town,
country or continent and their climatic conditions (Usman, Lizam, and Adekunle, 2020).
 Behavioural: Company segment this market on the basis of customer habits, and how
they interact with shopping websites, brands and products.
Effective target marketing through market segmentation can have big impacts on
organization's retention and profit making. Here is the analysis and identification on how it helps
in achieving those goals:
Through market segmentation the company can decide which segment of market they
want to target and offer their products or services. These market segmentation helps the
organization to clearly identify who their customers are and what are their purchasing patterns.
The study of consumer purchasing behaviour can help the organization to strategies better
according to how they interact with the products and services of the organization (Dolnicar,
Grün, and Leisch, 2018). Customer's likes and dislikes can be identified easily and changes
according to that can be made. This will help the company to personalize their products and
services for different type of segmented market which will further help them to attract potential
customers.
Every individual have different need, men and women have different needs, children and
adults have different need, office goers have different needs than businessmen. Every sample of
population differs from each other, they have different interest and choices, even the social class
justify one's needs and desire. Market segmentation will help the marketers to make appropriate
strategies for particular segment according to their lifestyle and other factors. They would be
able to target right products or service to right people and effective focus will rectify the wastage
of efforts. For example, ATC's market segmented to younger travellers from Europe who have
different needs than the older generation. The young travellers prefer the vibrant and dynamic
city life, they get attracted to different lifestyle, wine, food and culture (Caber, Albayrak, and
Crawford, 2020). Adventure trips draws their attention, sports and activities like beaches, trails,
surf and other sports facilities are provided to them. Additionally, helping young travellers to tell

them what is to be done in Australia was important, like, travel options to move around the
country easily, unique experience to be found, diversity of region.
As mentioned in the case study the ATC they segmented their marketed into three
categories on the basis of age and mainly targeted their market on young independent travellers
from age 18-24. It helped them understand their behaviour about their expenditure habits.
Identifying their needs and creating demand for the company's goods or service and controlling
supply will make business activities effective and create more profit with better customer
experience. For example, ATC was establishes by Australia to promote their international
tourism destination. They did a market segmentation on the basis of age for European travellers
and found that the youth were more likely to visit their country for seeking experience as a
traveller (Carvache-Franco, and et.al, 2020). They could identify their behaviour of expenditure
on accommodation, bus, sporting activities and adventure. Through the segmentation it was
easier for them to know customer's preferences, hence, they were able to provide those services
they needed with effective and efficient efforts. Hence, companies are able to have greater focus
on what they want to do and how they are going to achieve those goals with better serve to
customer's wants and needs.
Through geographical segmentation other companies, such as retailers can design their
products according to what the climate of that geographical condition allows and what those
condition create needs for (Camilleri, 2018). Market competitiveness also increases when a
company focuses on particular segments. Through segments, they gain every information needed
and act according to it which can give them upper hand in the market which at last result in
higher Return On Investments. (ROI). Once the company learns about the market trends and
demands with their target customers they can identify the need of resources required in the
organization which will further help in better allocation of those resources throughout the
organization. For example, if the specialized staff for technical department is needed as per
market needs the human resource department can recruit such personnel and allocate to their
right place. Targeted segments have a benefit of targeted communication within the organization
which also ensure better targeted communication to the consumers.
When a brand knows what their customer's needs and demands are in a niche market and
studies their purchasing behaviour, a more personalized and specialized product and services
could be provided by them. This can allow the brand to be different from rest of the market as

they are not merely trying sell but truly understanding the customer needs and creating specific
messaging which makes them stand out from the competitors (Zhou, Zhai, and Pantelous, 2020).
All these efforts of marketed segmentation lastly results in better customer experience which
eventually ensures customer loyalty.
Analysis of Integrated Marketing Channels' Impact on Long Term Customer Loyalty
Integrated marketing communicates unified message throughout the marketing channels
that the brand uses. This helps in providing consistency whenever a customer interacts with the
company. These channels can be social media, television, radio, print media, banners, boarding,
email marketing, blog posts on any other channel that a company can use for marketing. The
holistic message helps on creating a brand image that can help in creating brand recognition. The
various impacts it has of growth of organizations and long term customer loyalty are:
There are many channels through which a company reaches its audience and potential
customers. If one brand pitches for more than one message on every different channels the
customers can lose their track and may not recognize the actual brand. Through the integrated
marketing unified message throughout the channels will resonate the audience, and they will be
able recognize the brand better. Also, the constant delivery possible to the customer of the
message and consistent communication will help in gaining their trust. Hence, it builds brand
recognition and trust. As discussed, a firm can use range of different channels to reach their
audience. A brand can only survive in a market if they retain their customers and in order to
achieve that they reach out top those potential consumers through different communication
channels. The traditional channels like print, radio, television, billboards and banners are one
way a company use. Additionally, the surge of internet has brought social media and other digital
marketing platforms which helps them to reach their audience and have first-hand conversation.
These communications channel reaches a mass audience and with right messaging they can
create a market of loyal consumers (Grubor, and Jakša, 2018).
Consistency in message will not only increase overall impact but also be very cost
effective. Uniformity in message will reduce the cost of specialism in every other channel, the
same image or content could be used across different media without major alteration. The same
won't be a lazy alternative, rather it will create harmony in the message delivering. It will also be
time effective and the focus of organization could be shifted to other activities within the firm.

Everything at last will bring result in increased efficiency. If a customer hears the same message
few times they can remember the brand and the chances of them acting up on the message may
increase. The increase chances of actions from potential customers also ensure the success of the
strategy and the repetition of these tactics ensures repetition in success. There are many benefits
of integrated marketing communication for external audience but it also has great impact on
internal people of organization. The success that it brings with itself boost morale of the
personnel who works on creating those strategies as well people who work on the manufacturing
of those products or services. Increase morale motivates the company to work in the same or
increase consistency, so they could maintain the same result and reach the organizational
objectives expecting even better results.
For example, ATC launched a campaign across Europe's major markets “The Brand
Australia”, where they pitched the image of Australia that it “naturally free-spirited”. They
showed the attributes, values, promises and benefits that develop a perception about range of
products and services offered by them. The value that they pitched was colourful, optimistic and
free-spirited for Australian travel experience and the Brand Holiday Australia pitched the image
of Australia and Australian people as genuine, unpretentious and open. These image building
will then be linked to products provided by them.
One of the marketing channel that is growing rapidly is digital and social media
platforms. The new trend of digital and internet medium has not only taken a new form of
entertainment but also supported brand building of products and individuals. Every small and big
enterprise has been using this channel to boost its reach and engagement to their audience and
potential customer, which not only give them a chance to build brand recognition but increase
the chances of potential customers to opt for the product and services offered by the company
(Juska, 2017). This platform also help to engage with customers by having one on one
conversation, which improves communication relationship between customer and organization.
One benefit of social media and internet channel is the ability this gives to the company to give
on time response to any query or message from the customers. The organization also has one
more advantage and that is having feedback directly from the customers. If a firm gets the
feedback of the customers directly and not through the market the possibility of providing better
response and solution to their query is higher. They will be able to give better assistance and in

case of positive response they will be able to follow-up to their strategy. It will easier for
company to know what is working for them and what is not working from.
This joint efforts of integrated marketing will able the organization to have a better
communication to the market and create a brand image which at last will result in long term
customer loyalty and growth of organization.
CONCLUSION
Market segmentation is a process adapted by organizations to divide the target market
into different approachable groups. There are four different segmentations, demographic,
geographic, behavioural and psychographic on the basis of common interest, priorities, needs
and other similar behaviour. Target marketing through market segmentation helps the
organization to have better focus on the market, be cost and time effective and have overall long
term customer loyalty. Integrated marketing send unified and holistic message throughout the
marketing channels that the brand uses. It is a strategy that provides consistency and helps in
building brand image and recognition of a company, allows to reach a larger audience, and
maximize ROI through cost and time effectiveness. Using both method of market segmentation
and integrated marketing, a brand can build customer loyalty and ensure growth of an
organization.

REFERENCES
Books and Journals
Caber, M., Albayrak, T. and Crawford, D., 2020. Perceived value and its impact on travel
outcomes in youth tourism. Journal of Outdoor Recreation and Tourism. 31. p.100327.
Camilleri, M. A., 2018. Market segmentation, targeting and positioning. In Travel marketing,
tourism economics and the airline product. (pp. 69-83). Springer, Cham.
Carvache-Franco, W., and et.al, 2020. Motivation and segmentation of the demand for coastal
and marine destinations. Tourism Management Perspectives. 34. p.100661.
Dolnicar, S., Grün, B. and Leisch, F., 2018. Market Segmentation. In Market Segmentation
Analysis. (pp. 3-9). Springer, Singapore.
Elliott, M. and Galeotti, A., 2019. Market segmentation through information. Available at SSRN
3432315.
Grubor, A. and Jakša, O., 2018. Internet marketing as a business necessity. Interdisciplinary
Description of Complex Systems: INDECS. 16(2). pp.265-274.
Juska, J. M., 2017. Integrated marketing communication: advertising and promotion in a digital
world. Routledge.
Usman, H., Lizam, M. and Adekunle, M. U., 2020. Property price modelling, market
segmentation and submarket classifications: A review. Real Estate Manag. Valuat. 28.
pp.24-35.
Zhou, J., Zhai, L. and Pantelous, A. A., 2020. Market segmentation using high-dimensional
sparse consumers data. Expert Systems with Applications. 145. p.113136.
Online
What Is Market Segmentation? What Type Suits Your Business?, 2021. [Online]. Available
through: <https://blog.alexa.com/types-of-market-segmentation/>