Meeting customer needs

The market

The market comprises all potential customers made up of individuals, businesses or organisations with a specific need or want and the monetary means to satisfy it. The size of the market is the number of potential customers and the overall value they represent in terms of sales. this can change due to factors such as population growth, economic conditions or changes in preferences. Market segmentation divides a market into distinct groups that share similar needs and characteristics. these are based on demographic, geographic, psychographic and behavioural factors. Targeting involves picking one or more of these segments and developing products that specifically meet their needs. Businesses need to understand who its target consumer is, what they want, how they behave and what motivates them. Positioning is how a product or service is differentiated in the mind of the consumer creating a unique image in the customers mind regarding its brand or product. A market orientated company bases its products and operations around the needs and wants of its customers, constantly adapting to market trends and consumer demands. The marketing mix (4 P’s) is used to meet the needs of their customers. Each “P” represents a specific tactic that can be modified to reach a company’s target market effectively.

• Product - must be of high quality, reliable and innovative

• Price - the amount customers are willing to pay. Determines profits and must be set in a way that provides value to the customer while also covering production costs and delivering a profit

• Place - having a product available in a location or format that is convenient for customers is crucial

• Promotion - how a business communicates with its target market through advertising, public relations, sales promotion and direct marketing

Customer satisfaction leads to repeat purchases, positive word of mouth and customer loyalty. Its achieved by meeting or exceeding customer expectations. Market research helps them to design and deliver products that meet customer needs more effectively achieved through surveys, focus groups and web analytics. Marketing strategy plays a crucial role in how they meet customer needs. This forms the basis for all marketing decisions and drives the company’s efforts to satisfy its customers. Product life cycle: introduction, growth, maturity and decline. At each stage the needs and preferences of customers can change so businesses must adapt accordingly.

Market research

Market research is the process of collection, analysis and interpretation of data and information about consumers, competitors and the marketplace. It can help in understanding customer needs, expectations and behaviours essential to marketing their needs. Primary research is collection of new data through surveys, interviews, observations and experiments. Secondary research is analysis of existing data collected by others. Primary research is first hand and up-to-date data but may be time consuming and expensive. Secondary research is less expensive and faster but data might be outdated or not fully applicable to to the specific market situation. Qualitative methods provide insight into attitudes, feelings and behaviours. Quantitative methods provide numerical data that can be statistically analysed. Sampling should be representative of the entire population for the results to be reliable and valid. Methods include random, stratified and quota. Limitations include potential bias in data collection, inaccurate sampling, misinterpretation of data and that consumer behaviour can change over time. Market research is crucial in making informed business decisions regarding product development, marketing strategies, pricing and distribution. Understanding the demographics, psychographics and buying habits can help a business tailor its products and services to meet customer needs establishing a competitive advantage. Customer satisfaction surveys provide insight into whether a business is effectively meeting its customers’ needs and expectations. Online market research is more important due to rise of digital technologies and platforms. Ethical considerations include data protection, informed consent, confidentiality and avoiding deception. Violations can damage a businesses reputation and customer trust.

Market positioning

Market positioning is the perception of a product or service in the minds of consumers compared to competitors. Its a strategy that aims to make a brand occupy a distinct position in the mind of the consumer. Key elements include determining the target market, understanding how different a product is from its competitors and identifying the unique selling proposition of the brand. Target market is the group of individuals or businesses that a company intends to reach with its marketing efforts. Its important to accurately determine the target market before positioning. Differentiating is also critical. It entails a deep understanding of competitors’ products, pricing strategies, distribution networks and promotional efforts to position the product successfully. USP presents the factors that make a product distinct from the competition. Its essential to identify and leverage its USP for successful product positioning. Positioning strategies are based on product attributes, competitors, use or application, price quality, product user or cultural symbolism. Positioning is about influence and creating an image. Marketers use positioning to create an identity, to differentiate and to communicate the company’s intended message to its target market. May need a repositioning strategy if the market dynamics change, the product is not performing as expected or the business wants to target a new market segment. Perceptual mapping is used to understand the consumers perception of a brand compared to its competitors. It’s a diagrammatic technique that attempts to visually display the perceptions of consumers. Effective market positioning could be the difference between success and failure. It helps brands stand out, make an impact and pique consumer interest. The 4 P’s must be aligned to reaffirm the positioning strategy implemented. Continuously monitoring the effectiveness of the positioning strategy is critical and is done through regular customer feedback, market research and sales data.