Thursday, December 5, 2019
Strategic Marketing Methods
Question: Discuss about theStrategic Marketing Methods. Answer: Introduction Marketing management in business today is faced with the challenge of changing trends in business practices and the development and use of technology has helped organizations in coming up with techniques and methods for marketing. In order to market products, organizations have to analyze consumer behavior and consumption needs which are influenced by factors such as the quality and cost of the product and the availability. For instance, the Nestle Company which produces Nestum 3in1 is an internationally recognized brand which has to incorporate the market orientation, techniques in ensuring that the produce receives international reception among its different markets. Therefore, the focus of this paper is to analyze the different marketing orientation techniques by Nestle in order to segment its target population by positioning their product in the global marketplace. Segmentation, Targeting, and Positioning This model is applicable in marketing in the sense that it creates priorities in marketing through segmentation of the population and creation of communication messages which target the specific population through personalized and relevancy in messages and thus the organization makes production decisions based on the market needs and thus this method is practical to organizations today (Hanlon, 2016, p. 7). Segmentation in marketing means identification of the customers and delivering of the products when and where the customers are located which is referred to as geographic segmentation. Segmentation is about creating relationships with the different stakeholders involved in the production and supply chain and thus the organization engages in target promotional activities which addresses the different audiences for its products. Nestum 3in1 has achieved global recognition and use by the segmentation and targeting of the populations in the US and other markets worldwide (Weinstein, 2013, p. 4). Upon proper segmentation of the market thus the organization identifies the attractiveness and potential presented by each market segment and thus the suitable one is the target for the product. For instance, the case of Nestum 3in1 was a product innovation which targeted the American and other western adult population between the ages of 5-85 years. Segmentation involved the partnership with Eu Yan Sang, a trusted household name and Asias leading progressive healthcare company with a strong foundation in Traditional Chinese Medicine (TCM). The specific needs address the psychographic and behavioral needs of the population, thus the Nestum 3in1 fits the hectic lifestyle while embracing healthy eating habits (Nestle, 2012, p. 1). The STP strategy involves selecting targets for the product which are chosen on the basis of the market size given the population size and composition. The existence of Nestle in many markets makes the brand to be receptive and thus the introduction of a new product by the company will receive positive reception and thus anticipated growth in terms of sales and revenue (Weinstein, 2013, p. 4). Product positioning in the market involves the analysis on the market position of the company and brand in general in the market and an evaluation of the competition in order to identify opportunities through gap identification. Perceptual mapping identifies competitors in the global market producing healthy drinks and cereals such as Weetabix, cornflakes, cocoa puffs among others products and thus given the competition the company is able to set strategies to meet the market needs while remaining competitive. Nestum 3in1 has presented the population with a healthy drink and instant preparation thus positioning itself in the market as the choice of convenience and efficiency for its users whose lifestyle and behavior require such a product (Hanlon, 2016, p. 7). Nestle is able to develop marketing objectives of its product Nestum 3in1 in different markets. Given the reception in the Asia markets the objective of increasing the growth and market share by 5% in the global market by end of half year 2017. The objective which aligns with company goals of profitability is the increase in sales revenue by 17% through diversification of product to target adults and children in different markets (Nestle, 2012, p. 1). Strategies for Objective Attainment The STP method in identifying the target population for the Nestum product is key in the development of strategies applicable by Nestle in sustainability and profitability goals. Engaging in promotional activities such as advertisement which is aided by the digitized marketing place in the globe is an advantage for the success of Nestle. Another strategy is the product innovation and diversification, this entails the utilization of partnerships which will ensure quality and diversity in terms of consumer needs is met (Blythe and Zimmerman, 2012, 17). Bibliography Blythe, Jim, and Alan S. Zimmerman. Business to Business Marketing Management: A Global Perspective. London: Routledge, 2012. "The New NESTL NESTUM 3 in 1 Cereal Drinks." Http://www.nestle.com.my. Last modified October 1, 2012. https://www.nestle.com.my/media/pressreleases/allpressreleases/the_new_nestle_nestum_3in1_cereal_drink. Hanlon, AnnMarie. "The Segmentation, Targeting and Positioning Model." Smart Insights. Last modified November 8, 2016. https://www.smartinsights.com/digital-marketing-strategy/customer-segmentation-targeting/segmentation-targeting-and-positioning/. Weinstein, Art. Handbook of Market Segmentation: Strategic Targeting for Business and Technology Firms, Third Edition. Hoboken: Taylor and Francis, 2013.