A corporation has to do the following actions in order to establish a customer-driven market strategy: Flashcards
(28 cards)
A corporation has to do the following actions in order to establish a customer-driven market strategy:
- Segmenting the market
- Market Focusing
- Differentiation
- Positioning
Identifying a target market begins with market segmentation. When a larger group is divided into two or more groups, each of which shares some traits, this is referred to as market segmentation.
Segmenting the market
Following market segmentation, marketers will want to select their target audiences. Since no one strategy would be effective for all consumer segments, it is crucial to create strategies for the target markets of the business.
Market Focusing
There are three methods for figuring out a company’s target market.
- Undifferentiated Targeting - This approach uses a single marketing strategy since it considers that the market is made up of one big group with no distinct subgroups. This may be the approach.
- Concentrated Targeting: With this strategy, a marketing department may focus on a certain market segment. The business may learn about the requirements and preferences of that particular market by concentrating on a certain sector.
- Multi-Segment Targeting: This strategy is employed when a business has to concentrate on more than one segment. Typically, each sector would require a separate plan from the marketing department. The company’s most expensive strategy is this one.
The capacity to create a good or service that stands out from everything else on the market is ______________. If a strategy is successful, a business may be able to charge more for its goods.
Differentiation
The technique of _____________helps marketers understand what their business should do to advertise its goods or services to its target market. With ___________, the marketer chooses the image for the product in accordance with the target market. The goods, price, location of sale, and promotions play a role in this. The marketing team may turn a customer’s interest in a product into a sale with the help of a good placement.
Positioning
is an essential road map for a successful organization. It outlines the course the business is pursuing, its objectives, the place it wants to be, and how it plans to get there.
business plan
What makes a business plan crucial?
A very well business plan is a crucial tool since it enables entrepreneurs, small business owners, and their staff to outline their goals and monitor their success as their company expands.
Detailed information that can increase your company’s chances of success is generally included in business plans. Examples include:
- Market analysis: learning about the elements and circumstances affecting your sector
- Competitive analysis: assessing the advantages and disadvantages of your rivals
- Customer segmentation: To better your marketing, separate your customers into several categories depending on particular traits.
- Marketing: promoting your company by employing research
Planning and carrying out the most effective manufacturing process is done through logistics and operations strategies.
- Cash flow projection: knowing the amount of money coming into and leaving your firm.
- A general course for long-term growth
- that serves as the forerunner of the business plan.
- is a prerequisite for the business strategy. A __________ study also identifies options and fixes that would not have been discovered otherwise.
feasibility study
The value of a feasibility study
- It is a great tool for determining if a new company initiative is likely to succeed or fail.
- It may also be used if new items or concepts are added to the company’s portfolio.
- All the steps required to ascertain if a company concept is likely to succeed are included in a feasibility study.
- It is a step-by-step method that aids in weighing the advantages and disadvantages of each stage before beginning the real process.
- It offers outcomes for important choices, such as pursuing the concept further, honing it, or abandoning it completely.
is defined as a detailed and integrated written document that describes the various activities involved in opening and operating a new entrepreneurial venture.
Business Plan
Major Parts of the Business Plan
- Introduction
- Executive summary
- Environmental analysis
- Business description
- Organizational plan
- Production plan
- Operation plan
- Marketing plan
- Financial plan
- Appendix``
The introduction presents the general perspective of the business. It may consist of one to two pages. It includes, among others, the following sections:
Proposed name of the business
Address of the business
Name of the owner or owners
Description of the business
Location of the business
Funding requirement and source
For business ventures that will operate as a corporate entity, the names, nationalities, and addresses of the incorporators must be given. Incorporators are persons who originally formed the corporation.
Address of the Business
Description of the Business
A brief description of the business must include information about the type of product or service that the business intends to produce or provide. It may include a brief information about the ultimate mission, vision and objectives of the business. The other products or services that the business plans to produce or provide must also be mentioned in the description of the business.
Location of the Business
There are no rigid rules in the selection of the business location since several variables · affect the selection of the business location. The basic entrepreneurial consideration is to place the proposed business in a strategic location that will assure competitive advantage.
The following factors should be considered when deciding on the location of the proposed business:
Proximity to the target consumers
Distance from the sources of raw materials, labor, and utilities *
Availability and cost of transportation
Peace and order situation
Presence of direct competitors
The geographic and climatic conditions
The proposed business name must
Funding Requirement and Source
The estimated total initial cost of the business venture must be clearly indicated. It should include the projected breakdown or allocation of the total cost, e.g., how much will be for building, fixtures, equipment, supplies, and working capital. This section also presents the source or sources of funds. The initial cost of the investment may be provided solely by the owner or owners or partly by the owner and creditors. The estimated period to settle the funding source provided by creditors must also be mentioned.
the executive summary must include the following sections:
- Vision, mission, goals, and objectives of the business
- Business model
- Business and product position
- Wealth improvement approaches
- Parties supporting the business
At the very outset, the business plan must depict the fundamental characteristics, nature, philosophical values, identity, and image of the business.
VISION, MISSION, GOALS, AND OBJECTIVES
defines the perspective of the business in terms of its structure, production, operation, and financial activities that will lead to the achievement of the VMGO. There is no standard model that will exactly fit all types of businesses because they have different strengths and weaknesses, infrastructures, networks, and value propositions.
business model
will help determine how the business defines its course and the process of accumulating wealth. It tells the size of the market and the target market share of the business and product
BUSINESS AND PRODUCT POSITION
This section also includes a brief discussion of the marketing policies and financial operations of the business, and the profitability level of the industry and of the business. Standard benchmarks are good indicators in assessing the economic performance of the business.
WEALTH IMPROVEMENT APPROACHES
