Question 1

Segmentation is crucial for a business to define their target market better. Briefly explain the
strategic segmentation in the market-driven strategy process

Market segmentation is important for services or products to be adapted according segments. It is

the process of dividing target market into smaller and dedicated categories. By having market
segmentation, companies can focus their business actions according to segments which result in
optimization of resources and capital. There are 4 main market segmentation that can be used as
reference for business.

1. Demographics: Age, Gender, Income, Occupation

2. Psychographics : Values, Beliefs, Attitude
3. Geographics : Region, Area, Continent, States
4. Behavioural : Purchase Patterns, Usage , Preference, Taste

In order to find the segments for our services and products, there are several steps be followed:

1. Defining the market to be segmented

We have to define the market for our products and services so that it will fulfil the needs and
requirements by the market. For example, if we are selling laptops, our market will be working class
people in urban area and another market will be students in colleges and universities.

2. Identifying market segments

Once we know our market, we have to identify segments to focus on based on our services and
products characteristics. The basis of business is to provide services or products which add values to
the customers. Therefore, we have to analyze what kind of values do our products and services
offer. For example, cosmetic products which add values to people’s look and feel about themselves.
The market segments would be working women and teenagers in terms of demographics. As for
psychographics, the segment might be women who puts high importance on their look. Therefore,
we can use the 4 main market segmentations (Demographic, Psychographics, Geographic,
Behavioural) to identify the best market segment for our products and services.

3. Selecting segmentation strategy

In order to select market segment, we have to consider a few properties so that our segment would
bring sufficient impact on our sale. The first property is the purchasing power in the segment and
must be measurable in terms of size. The second property is the profitability of the segment. The
third property is that it is available and reachable. The fourth property is that it must be different
from other segments. Lastly, it must operational which means our marketing, programs and services
can be applied in the segment

4. Forming market segment

Once we select our market segment, it must be given a name to make it easier for marketing
department to work on. Before implementation of marketing and sales on the segment, market
research is advisable to test the marketability in such segment. We can use several criteria to test
the feasibility of our market segment. The first criterion is stability which is important for us to avoid
a market segment that is rapidly changing. The second criterion; it is actionable whereby we can
apply our marketing strategy on the segment. The third criterion; it is identifiable. Lastly, cost and
benefits of the segment.

5. Finer segmentation strategies

Finer segmentation strategies are strategies to find the smallest segment group and narrow the
market segment. The strategies are:

a. Micro segmentation

We have to find narrowly defined segments. As a result, we are going to have many highly detailed
segments. This strategy is useful for us to compete in highly competitive market as we can increase
our market segments number.

b. Mass customization

This strategy is to allow customers to specify details or design of a product or service. This practice
has been practised by computer companies such as Dell and Lenovo whereby customers can
customize their laptops or computers before purchase.

c. Variety Seeking Strategy

Variety seeking strategy is widely used in food industry as we can see foods are offered with
different ingredients, taste and colour. This is to encourage customers to increase their overall
purchase.

In conclusion, market segmentation is important for any business as it will provide optimization of
resources and capital used in investment to market a product or service.
Question 3

A positioning analysis helps managers understand how customers see their market. Analyze how
the managers implement their competitive positioning criteria.

Positioning is a strategy for businesses to position their products and services in consumers’ mind as
compared to the competitors. The perception and opinion of consumers matter when it comes to
purchasing decision. Therefore, there are several criteria for entrepreneurs to consider in order to
position their products and service.

1. Products and services benefits and values

Products and services must have significant benefits and values than competitor. This is the most
important criterion to be considered.

2. Distinctive and pre-emptive

Products and services must distinctive and are not easily imitated by others. If possible our products
must be protected through trademark or patent registration. This will limit products imitation in the
market. For example, McD logo is protected through trademark registration. In Malaysia, certain
headscarves design are protected through patent registration under myIPO.

3. Superior

Our products must provide superior quality and value to consumers as compared to our
competitors. For example, Mercedes Benz car is known for its superior quality than its rival. Over the
years they successfully positioning themselves among high quality and premium car manufacturers.

4. Communicable

One important aspect in positioning is for our products to be understood by customers. In order to
provide understanding to the customers, we must be able to communicate with them by providing
products manual and support.

5. Affordable

In order to be competitive, our products must be viewed as affordable at perceived value. If we are
selling high quality products, the price must commensurate with the quality of the products. For
example, Japanese car brands like Toyota and Honda are perceived affordable with their products
quality.

6.Profitable

Lastly, profitability is the most important part in any business. Therefore, our products and services
positioning must provide us profitability. For example, if we want to position our product as
affordable product, it must be profitable too. It is understandable that low pricing may push us to
reduce cost or profit margin but it does not mean we have to forgo the profitability

Question 5

Explain the marketing strategy process that can be implemented by the company in
designing strategic marketing planning.

There are 4 levels of marketing strategy process

1. Business purpose and mission statement

The first step in creating marketing plan to is to have mission statement or business objectives. The
purpose of having these objectives is to act as a reference or guide for business and marketing plan.

2. Establishment of core strategy

Once we have the objectives, analysis must be done on our business environment and company.
Usually we use SWOT (Strength, Weaknesses, Opportunities, Threats) for our company and PEST
(Policy, Economy, Social and Technology) for our business environment. By having this analysis, we
can gauge our business potential based on the results we have from the analysis.

3. Creation of the company’s competitive positioning

In this level, we have to identify our target markets and segments. We also need to analyze our
competitive advantage in order to compete with our competitors within the same markets and
segments. Once our competitive advantage is identified, we have to select our markets and
segments in order to suit and adapt our products and services for that particular markets and
segments. Then, we can proceed with marketing on the selected markets and segments. At this
level, positioning must be identified and selected in order create perception and opinion on our
products and services.

4. Implementation and Control

In this stage, a marketing organization must be established in order to focus on the implementation
of the marketing strategy. Marketing mix is important in this stage as it consists of controllable
variables the company puts together to satisfy the target market or segment. We have to consider 4
components: Products, Price, Promotion and Place or Distribution. These components must be
optimized in order achieve business objectives in our target market and segment. Lastly, element of
control must be applied in order to gauge the effectiveness of our marketing strategy. Usually
monitoring and control can be done by observing sales number and cost of marketing. Effectiveness
our marketing strategy can be observed by measuring cost of marketing on per unit sold. Ideally we
want to achieve as lowest as possible in terms of cost marketing on per unit sold as it reflects
effectiveness of our marketing strategy.

Question 6

Designing a strategic marketing activities is essential in determining the successful of

marketing planning strategies. Briefly discuss the key elements in planning of
marketing activities in strategic marketing

There are several key elements that a strategic marketing should have:

1. Executive Summary

Executive summary is an overview of the whole marketing plan and highlights of important points in
the marketing plan

2. Situation Analysis (SWOT, PEST analysis and 5C)

Situation analysis is analysis the process of gathering information on current situation internally or
externally. There are several situation analyses we use and the most popular method is SWOT
Analysis. This analysis will provide information on a company’s strengths and weaknesses and also
opportunities and threats for the company to be aware of. The second is PEST analysis which analyse
external factors namely: Policy, Economy, Social and Technology. It is important to understand
external situation because any change in this external factor will affect our business positively or
negatively. For example, policy on car fuel change when certain countries is mulling to ban car with
conventional engine in order to go for hybrid or electrical engine in the future. This policy change
will negatively affect the demand for petrol and diesel engine. Another analysis could be done is 5C
(Company, Competitor, Collaborator, Customers and Climate).

3. Marketing Strategy and Marketing Mix

Marketing strategy is the most important element in the whole plan. In this element we have to
identify and select our and target market and segment. Then we have to consider our products or
services positioning in the market. Positioning is vital in order to win people’s hearts and minds. In
this stage our goals must specific, measurable and realistic. In order to execute our marketing plan,
we have to consider marketing mix which will guide us to reach customers in effective ways. There
are 4 ways to convey or deliver value of our products and services; Products, Price, Promotion and
Place or Distribution. These components are vital in implementation of our marketing plan

4. Financials.

In this stage, we have to prepare financial projections such as sales and overhead. Marketing cost
also should be included in the projection. Apart from that, it is essential to have breakeven analysis
in this stage as we can have projection on when we are going to breakeven. Breakeven analysis also
will provide us sales daily target in order to achieve breakeven at specified time.

5. Implementation and Control

Lastly, we have to create a marketing organization to implement all the plans. Element of control
must be applied in order to gauge the effectiveness of our marketing strategy. Usually monitoring
and control can be done by observing sales figure and cost of marketing. Apart from that, we must
have a contingency plan in case certain plans are not working according to plan.