Sales and Market Segmentation Strategies
T-11 Sales
Functions: Market analysis, marketing, and sales.
Relationship Between Company Departments
Sales coordinates with other departments to achieve brand management goals. This includes connections with:
- Production department
- Finance department
- Human resources department
The Market
The commercial function involves three key elements: the product, the company, and the consumers.
Types of Market
- Perfect Competition:
- Product homogeneity
- Many different buyers and sellers
- Market knowledge
- Free entry and exit from the market
- Imperfect Competition:
- Monopoly
- Oligopoly
- Monopolistic competition
Total Demand and Corporate Demand
Demand is the quantity of goods or services that buyers are willing to acquire in a period of time. Total demand for a specific product is the amount of purchases made in a period. The amount of a particular product purchased from a company for a period of time is called company demand. Potential market demand refers to the maximum sales possible at a given time. Potential demand is the sum of the company’s consumers plus those of the competition and other possible consumers of the product. The difference between total demand and potential demand is that potential demand is a construct, while total demand actually exists.
Market Research
Market research involves collecting, preparing, and analyzing information on the general environment and consumer competition.
Phases of Market Study
- Definition of the investigation’s goal.
- Investigation model design.
- Data collection.
- Classification and structuring of data.
- Analysis and interpretation of data.
- Presentation of the results.
Primary Data Gathering Techniques
- Surveys
- Observation
- Experimentation
Competition: A group of companies in one market offering a product or service.
Segmentation of Markets
Market segmentation is the division of clients with homogeneous needs.
Segmentation Criteria
- Demographic criteria: Group individuals according to variables.
- Socio-economic criteria: Divide individuals according to aspects.
- Psychographic criteria: Provide recently considered reasons that complete the knowledge of the behavior of individuals.
T-13 The Positioning of a Product
What is Positioning?
Positioning is the image that consumers have of the product compared to other competing products or other products sold by the company.
Positioning Process
A company must follow these steps for product positioning:
- Divide the market according to different segmentation criteria.
- Assess the interest that each segment may have in the product.
- Select one or more segments (target audience).
- Identify the positioning possibilities for each selected segment.
- Select and develop a positioning concept.
Positioning and Needs
Examples of needs that could be satisfied at the time of purchase include: efficacy, safety, economy, innovation, and prestige.
Positioning Strategy
- Product-related positioning strategy.
- Brand-related positioning strategy: quality, prestige, low price.
Marketing Plan
A document regulating the company’s commercial policy: objectives, specific actions, and a timetable for each action.
Analysis of the Situation
Analysis of key factors:
- Analysis of actions conducted by the company in prior periods.
- Study of the environment.
- Company image.
- Qualified personnel.
- Distribution network.
- Competition.
- Product.
SWOT Analysis
Relate a strong point with a business opportunity and try to avoid both a weakness and a threat, as reflected in the table below.
Strategy Preparation and Selection
Strategies are the paths and actions that the company must take to achieve the set targets.
Action Plan
Specific actions to implement to achieve the objective with the strategy.
Budget Preparation
Quantification of the effort for the company that involves the execution of the plan.
Control Methods
Monitor the degree of fulfillment of objectives as the defined strategies and specific actions are applied.