SEGMENTATION STRATEGY, POSITIONING AND MARKETING OBJECTIVES
SegmentationStrategy, Positioning and Marketing Objectives
Marketsegmentation refers to the process of creating different subsets ofcustomers through subdivision of the market to develop a market mixstrategy that meets the needs of the customers in different segments.Segmentation helps in identifying distinct customer needs so that theorganization can direct its resources towards developing productsthat will satisfy the needs of the customer. A comprehensive marketresearch will be conducted before launching the electric bicycle toidentify various unmet needs of the customers so that key featuresmissing in the existing competitor’s products can be emphasizedduring marketing. Different mechanisms will be employed in segmentingthe market for an electric bicycle to provide valuable products tothe customers that meet their needs (Rama, 2011).
First,Geographical Segmentation will entail focusing on the climaticpatterns of different segments of Canada to identify the consumerspurchasing behavior since it is influenced by the kind of climateexperienced in a certain region. Geographical segmentation strategyalso helps in identifying distinct customer needs and their culturalorientation that may help in understanding their sensitivity tovarious products in the market. Therefore, the business for anelectric bicycle will flourish in market segments with favorableclimate and customers’ belief system, and values allow the use ofthis mode of transport.
Next,demographic segmentation will be significant in classifying thecustomers based on their gender, age, ethical background and level ofincome since they guide on the purchasing power of the customers.Electric bicycles will be easily adopted by the youthful generationas they are more technological conscious as opposed to the oldercohort in the market. Additionally, the male gender will be mostlikely to form the largest market for this product hence, extensivemarketing campaign will be done on this segment of the market.Different ethnic groups have different belief systems henceunderstanding them is imperative since some cultures prohibit womenfrom riding bicycles hence penetrating in such markets will bedifficult and affects the customer base adversely. Furthermore, theincome level will influence the consumption pattern of the consumersand their purchasing power whereby electric bicycles will have a goodmarket in segments with middle and high-income earners.
Onthe other hand, psychographic segmentation will help in subdividingthe market based on customers’ motives, social class, personalityand lifestyle since these characteristics will influence theirpurchasing patterns. The attitude that a customer has on the use ofthe electric bicycle as a mode of transport will influence theirdecision to purchase while their mode of reasoning will motivate themto purchase the bicycle. Moreover, social class and the individual’slifestyle will influence their purchasing behavior whereby customerswith a great interest in automobiles will be quick in acquiringelectric bicycles while the upper social class is more likely topurchase an electric bicycle as opposed to the manual bicycles.
Behaviorsegmentation will also be applied to understand the reaction of thecustomers in the market towards the product, various benefits theywill be seeking from the product and the mode of application for theproduct. Due to high rates of traffic on major roads in Canada,customers will acquire electric bicycles to enable them maneuverthrough the traffic hence segments will be common along the streetswhere traffic is inevitable. Behavior segmentation strategy will alsoaid in identifying first time users, nonusers, and regular userswhich will enable development of market mix that suits a particularsegment of customers based on their user status. The strategy alsohelps in determining loyal customers with a high affinity for theelectric brand of bicycle and their usage rate to develop effectivepromotional campaigns that will motivate customers to continue usingthis brand of the product in the market.
Finally,effective segments established in the market will meet variouscharacteristics that will determine the feasibility of business inthese market segments. They must be accessible to allow customerreach for the products and measurable regarding their size,purchasing power and profiling. The segments should also be distinctwhere different market mix can be applied, large to producesignificant profits and actionable to allow effective strategiesmeant to improve their attractiveness work. Market segmentation formsthe basis for market targeting whereby effective segmentation leadsto the understanding of potentials for different market segmentswhich assists in developing market mix strategies in different targetmarkets (Kim & Mauborgne, 2015).
Positioningrefers to the mechanism by which an organization builds a positiveimage about their product in the mind of the customer relative toother competitors’ products. It is a powerful marketing tool sinceit gives the consumers power to select a certain product afterrationalizing about the benefits that will arise from using theproduct. Positioning provides a mechanism for the consumers todifferentiate between various products in the market based on theirattributes since they have a clear, desirable and distinct place inthe consumers mind. Studies show that the buying process begins withthe evaluation of products attributes by the consumer after whichthey organize these attributes in different categories and positionthem in their minds. Consequently, the consumer develops perceptions,feelings, and impressions based on the product positioning in theirmind. Various strategies will help in achieving a competitive edge inthe business of electric bicycles by ensuring that effectiveinformation about the bicycles features, quality and benefits ispassed to the customer. Therefore, much emphasize will be laid onselling the sizzle and not the steak to give the buyer enough reasonfor traveling with the electric bicycle (Sengupta, 2005).
First,the product features strategy will help in communicating uniquecharacteristics that the bicycle has compared to others in the marketwhich will give a competitive advantage over the competitors.Features such as the high bicycle speed and riders’ safety whenusing the bicycle will be significant in winning the trust andloyalty of the customers while a comprehensive benefits package willbe part of the vital information passed to the consumers.Subsequently, customers associate high price with quality hence thepricing- quality aspect will be considered during penetration intodifferent market segments to create confidence about the quality ofthe product.
Additionally,a positioning strategy will be crafted based on the usage occasionwhereby the electric bicycle will be positioned as a product that canbe used on all occasions ranging from sporting to luxury. Therefore,customers will purchase the product since it has multipleapplications that will give value for their money.
Moreover,product class dissociation strategy will enable positioning of theimage that the bicycle can be used by everyone in the societyirrespective of their social class. The product will rise beyondvarious stratifications within the society thus creating a sense ofownership of the brand by the entire society and improving customerloyalty towards the product.
Competitorpositioning strategy will also be employed whereby the product willbe positioned away from the competitors by considering it as moresuperior compared to other products on the market. This will createhigh affinity for the product among the customers who will take theinitial step of trying the product to prove the validity of theinformation that they acquire from the market environment.
Also,Cultural heritage will help in marketing the product as appropriatefor being used by people from different cultural backgrounds bypositioning the electric bicycle as meeting all cultural requirementsand harmless to the users (Ellson, 2004). Finally, user and benefitsstrategies will be paramount in positioning the product as verybeneficial to customers who uses the product and will complement bythe use of testimonials to increase credibility on the use of theelectric bicycle. Effective positioning of the electric bicycle willbe carried out through clear differentiation from other bicycles inthe market, clear outlining of the products attributes andunderstanding the customers purchasing behavior.
Marketingobjectives refer to various goals that the organization will aim toachieve while implementing various marketing activities. First,marketing will focus on understanding the customer needs and wantswhereby the customer will be the core part of the business by puttingtheir interests first to improve their satisfaction. The organizationwill strive to ensure the electric bicycle meets the basicrequirements of the customer and frequently engage in market researchto determine whether the products fulfill different needs the market.Marketing will also strive to increase the affinity for electricbicycles by making nonusers want to use the products thus leading tothe development of new users in the market (Pride et al. 2015).
Next,increasing the awareness of the brand will be a key objective thatwill be achieved by positioning the product image into the mind ofthe customers in the market segment. Marketers will be involved inlong-term advertising to ensure that customers get a clear picture ofthe electric bicycle thus increasing the awareness of the product inthe market.
Besides,marketing will also purpose at improving the market share to increasethe profit margins for the organization through increased sales. Market share will increase due to improved awareness about theproduct in the target market which creates confidence in the use ofthe product which will motivate customers to purchase the electricbicycle.
Moreover,marketing will aim at improving the profitability of the business byincreasing the customer base and minimizing operational costs. Whenthe customer base increases, the number of sales will also increasehence with minimum expenditure within the business, the profitmargins will be high. Therefore, effective marketing should aim atincreasing the profits for the organization to help in runningvarious operations meant to satisfy the needs of the customersefficiently (Doole & Lowe, 2008).
Finally,marketing will focus on diversifying the market by introducingelectric bicycle that will be a new commodity which will compete withother existing products in the market. Therefore, new opportunitieswill be established in the market through market research andexploited to improve the success of the business.
Inconclusion, market segmentation, product positioning, and developingmarket objectives comprise of key ingredients that determine thesuccess of any business. Segmentation strategies ensure the market issubdivided into distinct subsets with different customer needs whilepositioning helps in creating a positive image of the product in thecustomers’ mind. Finally, marketing objectives help various teamsin working towards a common goal and provides a mechanism for gaugingsuccess ensuring that the objectives set are achieved.
Doole,I., & Lowe, R. (2008). Internationalmarketing strategy: analysis, development and implementation.London, Cengage Learning.
Ellson,T. (2004). Cultureand positioning as determinants of strategy: personality and thebusiness organization.Houndmills, Basingstoke, Hampshire, Palgrave Macmillan.
Kim,W. C., & Mauborgne, R. (2015). Blueocean strategy: how to create uncontested market space and make thecompetition irrelevant.http://search.ebscohost.com/login.aspx
Pride,W. M., Ferrell, O. C., Lukas, B. A., Niininen, O., & Schembri, S.(2015). Marketingprinciples.
Rama,M. R. K. (2011). Servicesmarketing.New Delhi: Pearson.
Sengupta,S. (2005). Brandpositioning: Strategies for competitive advantage.New Delhi: McGraw-Hill.