- QUESTION
The Assessment Task is due in Week 5. Any variations to this arrangement must be approved in writing by your assessor. Submit this document with any required evidence attached. See specifications below for details. Performance objective The candidate must demonstrate that they are able to develop and present practical and implementable recommendations for focused marketing strategies in the marketing of a product or service. Assessment description Using the same product and business as in Assessment Tasks 1 and 2, you need to further develop the outcomes from Assessment Tasks 1 and 2, and: 1. Develop a report and make recommendations for a focused marketing strategy for the selected product or service. 2. The recommendations proposed must include a rationale and address the critical market segment, consumer and product/service issues identified in the previous analyses. 3. The recommendations should also include activities or measures recommended to improve their organisations capacity quickly to consumer demand for products or services where this is identified as a requirement You should use the outputs from Assessment Tasks 1 and 2, along with any adjustments made as a result of feedback from your facilitator, as the basis for this particular activity. BSB40212 Certificate IV in Business _____________________________________________________________________________________________ HACB Analyse Consumer Behaviour Student Guide v 2.0 October 2013 Page 11 Procedure 1. Access the outputs from Assessment Task 2, including feedback. 2. Confirm buying trends in your market sector. 3. Confirm your consumer profile. 4. Confirm your product or service profile. 5. Confirm the outcomes from your analysis. 6. Confirm the legal and ethical considerations impacting on your selected organisation and confirm the details of their impact. 7. Analyse each of these and identify their contribution to, or impact/potential impact on, your overall marketing activities. 8. Develop optional recommendations for marketing strategies. 9. Analyse these optional recommendations to test their applicability to the market segment, taking into account the product/service and consumer profiles and legal and ethical standards. 10. Finalise recommended market strategy or strategies. 11. Complete report. Specifications You must provide: a report that includes the following requirements: o recommendations for a focused marketing strategy for the selected product or service o a statement explaining the rationale for the recommendation/s and which addresses the critical market segment, consumer and product/service issues identified in the previous analyses o recommendations that include activities or measures recommended to improve the organisations capacity quickly to consumer demand for products or services where this is identified as a requirement. BSB40212 Certificate IV in Business _____________________________________________________________________________________________ HACB Analyse Consumer Behaviour Student Guide v 2.0 October 2013 Page 12 Your assessor will be looking for: identification and use of appropriate information for these tasks application of analytical processes and approaches to the processing of the information gathered and the development of recommendations use of appropriate market segmentation information use of appropriate consumer information use of appropriate legal and ethical information consideration of the influence of previous marketing activities in the development of recommended strategies development of relevant, robust and practical recommendations that support the requirements of the marketing plan a clear, logically assembled report.
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| Subject | Business | Pages | 6 | Style | APA |
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Answer
Recommended Focused Marketing Strategies for a Product or Service
Introduction: confirmed buying trends in the market sector
The buying trends in the company’s market segment involve regular purchases of baby diapers because diapers are products that are used on a daily basis, which means that they are purchased regularly. Given that they are packed in packages of different sizes with the smallest package containing 12 diapers and the biggest package containing at least 30 diapers, customers can be able to purchase whichever package they deem fit. There is demand for the smaller packages that contain twelve to twenty-four diapers, which are cheaper and extremely popular within the market. The target market frequently buys the larger packages as they usually plan for the diapers to last at least a month, while the smaller packages are popular within the mass-market (Hui-Ju, 2015). There is usually high demand within the first week and the last week of the month as the customers buy enough diapers to last for an entire month. The mass market has a tendency to purchase the smaller packages; hence, they typically make several purchases within each month.
Confirmed consumer profile
The main target groups of consumers are young couples raising a family together or young single individuals raising young children on their own. The young families are individual with considerable disposable income earning over $100,000 annually, which enables them to spend on luxury goods. Initially, this group is targeted by the private label diaper brand, which is exclusive and can be bought at exclusive retail stores. However, the company also seeks to expand into the mass-market and attract other groups of consumers’ even those with lower incomes. This is because research indicates that even consumers with minimal disposable incomes are likely to spend a significant amount of their income on quality purchases. Over time, the mass market is the one most likely to provide significant profits for the company given that it has a larger pool of consumers as compared to the small group of consumers with significant disposable incomes. Therefore, the company has two groups of target consumers with one group being made up of high-income consumers and the other group being made up of the mass market with less disposable incomes.
Confirmed product or service profile
The product being offered by the company is a private label brand of diapers that is being marketed as a high quality exclusive product that is a substitute for normal nappies, which are widely used within the target market segment. As a private label diaper brand, the product is targeted at consumers who crave exclusivity and high quality items that would be most inclined to purchase the diaper products. The diaper product is being offered as a quality alternative to normal nappies and other types of diapers as they are of better quality given that the diapers can keep a baby dry for up to twelve hours. The producers also plan to launch the product within the mass market, which has significant profit potential as compared to the initial target market, which has a limited number of consumers earning above $100,000 per annum (Banerjee & Soberman, 2013). The product should first penetrate the exclusive market before flowing into the mass market, as the mass market is likely to embrace the product if the top social class has also embraced the product.
Confirmed outcomes from the analysis
The outcomes of the above analysis include the fact that the diaper product is an exclusive private label brand that shall be initially marketed to the top social class before being marketed within the mass market. The company will focus initially on the top social class of consumers who have large disposable incomes before moving onto the mass market where consumers might not have large disposable incomes, but would still buy quality diaper products. The company stands to make significant profits from both market segments, as the mass market is likely to embrace the diaper product if the top social class have already endorsed and embraced the diaper product. The company should therefore have two marketing strategies for both market segments in order to appeal to consumers in both brackets.
Optional recommendations for marketing strategies
The company should employ two different marketing strategies for consumers in both market brackets. For the consumers with significant disposable incomes, the company should have targeted advertisements preferably not in the mass media, but in select outlets that shall be stocking the product such as malls and departmental stores. Mass media advertisements should also be tailored to appeal to the tastes of these consumers, as they are likely to identify with advertisements that feature celebrities. The use of celebrity figures in advertising the diaper products within the mass media is likely to attract consumers from both market segments. However, the top market segment might respond more to advertisements and customer interactions at select shopping outlets than the mass media advertisements (Teimoury & Fathi, 2013). Therefore, the company should consider investing in sales agents placed strategically within exclusive shopping malls and department stores to promote the diaper product while interacting with the target consumers as this is likely to work with the customers who crave exclusivity and social class. The company could also decide to conduct flash sales at selected stores in order to attract first-time customers who can test its products and give testimonials on the quality and effectiveness of the diaper product.
Applicability of the optional marketing recommendations to the target market
The marketing options discussed above are highly applicable to the target markets given that the mass market is highly likely to respond to mass media advertisements on TV as well as utilizing billboards and other mass-marketing channels. However, the top social classes are more likely to respond to promotional methods that have a personal touch and are more likely to respond to the marketing methods applied at select stores and the personal touch of sales representative at stores (Masters of Insight, 2015). Therefore, the company should utilize both methods of promotion and marketing in order to appeal to both categories of customers and generate sales from both market segments. The company should first market to the top social classes with significant disposable incomes in order to market the exclusivity and quality of the product and establish a market for its products before moving on to the mass market.
Conclusion and final marketing strategy
In conclusion, the company shall target the consumers with large disposable incomes within the first weeks of the product launch before moving on to the mass market. This will allow the company to establish a reliable market first before moving on to the mass market. After establishing a strong exclusive market among the top social classes, the company can move on to marketing in the mass market, which has significant profit potential. The company should be careful not to dilute the exclusivity of the product, which is a crucial selling point for the company’s products.
References
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Banerjee, S., & Soberman, D. A. (2013). Product development capability and marketing strategy for new durable products. International Journal Of Research In Marketing, 30(3), 276-291. Hui-Ju, W. (2015). A new approach to network analysis for brand positioning. International Journal Of Market Research, 57(5), 727-742. Masters of Insight: Marketing Art Meets Marketing Science. (2015). Journal of Advertising Research, 55(3), 339-352. Teimoury, E., & Fathi, M. (2013). An integrated operations-marketing perspective for making decisions about order penetration point in multi-product supply chain: a queuing approach. International Journal Of Production Research, 51(18), 5576-5596.
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