Q1. Using an example of your own choice explain how the various components of the marketing framework relate to each other. What are the implications of this model for marketers?
Safe n Sound child seats will be used in this explanation of the marketing framework. The Marketing Framework begins with a situational analysis using the 5Cs; Customer, Company, Context, Collaborators and Competitors. The 5Cs are dynamic, so this aspect of the marketing framework requires ongoing monitoring and adjustments (Iacobucci, 2010).
The customers for this product are new customer parents, repeat purchasers or carers. The company should be reviewed by ...view middle of the document...
They divide the market into distinct groups of buyers on the basis of homogenous needs, characteristics or behaviour. For example one segment may be aligned around a tight budget, another segment may prioritise the highest safety rating of car seats. They have are distinct needs as customers, so can be seen as two separate segments.
Once the segments have been identified, the business needs to determine which one would make the best customers, and then target that segment so that they can focus on the most profitable, sustainable segment. As McDonald (1999: 131) notes, few companies can afford to be ‘all things to all people’, and not all segments will be appropriate targets. As Wong and Saunders (1993) cited in Dibb and Simpkin (2009) explain, by improving customer orientation, market segmentation also has the potential to develop competitive advantage and improve business profitability.
Once the target market has been identified, businesses can then position their product or service most effectively. Positioning is the strategic recognition of competitive advantages and selling points. It enables the business to establish a distinctive place in the mind of target customers relative to its competitors. For the Safe n Sound child seat, it successfully aims to position itself as the safest of all child seats. Mazumdar (1993) reminds us that the targeting decision is dependent on whether the segment is large enough to be profitable, as well as accessible.
Iacobucci (2010) reminds us that the marketing tactics to apply the marketing strategy come from a customer focus using the 4Ps consisting of Product, Price, Place and Promotion. The product in a physical sense is the car seat. It has the highest safety rating available in Australia, so the benefit of the product is safety for children during car travel. Development is focused on improved safety features, however there’s potential to expand the product range with features such as automatic straps and iPod speakers or DVD accessories. The pricing of the child seats are at the higher end of the pricing scale, ranging from $399-$599, however the company has a return offering a free replacement seat if a seat is ever involved in an accident. A customer’s perception of value is important and if the seat were at a lower price it is possible customers may feel that quality is being compromised.
The places where customers purchase the product are specialty baby stores or high end department stores. They are not available at the discount department stores where most of their competitors are found.
Promotion for the product is centred on the slogan ‘Arrive…Safe n Sound’. The business has very astutely ensured that promotional videos for the product are shown at antenatal classes and they donate child seats to be used at antenatal class demonstrations. Communicating with potential customers through advertising in parenting magazines, glossy brochures at point of sale featuring the positive result...