Social Ethical and Legal Implemantation

Understanding Target Marketing

Understanding Target Marketing

A marketing plan is a good and services all-inclusive document that describe the business’s marketing and advertisement goals for a precise period. Each of the elements of this document is well planned identify individual customer needs, and describes the business tactics to satisfy them while achieving the marketing goals. This paper will explore the basic functions of the following market research elements Primary Research, Environmental Scanning, and Current Opportunities.

Primary Research

The Primary Research is the principal activity that holds highly important and efficient for the companies to engage in an efficient market research (Birkinshaw, 2004). This element of research is required not only for seasonal companies but also for new company thriving in new global market. Primary research is more about analyzing the gap in the market, and how the company’s goods and services can fulfill the gap of the market. In a broad nutshell, the factor of primary research is highly important and progressive through which organizations can achieve their productivity in a professional manner.

For example, a new pharmaceutical company analyzes the gap of a particular product in the market, and how the products of the company can comply with the management of the gap. This particular factor is highly efficient and important from the viewpoint of a company, and it is likely to use this particular tool to analyze the major gap in the market so that they can easily mold their product accordingly for a better result at the end of the day.

Environmental Scanning

After the fundamental primary research, the next element associated with the productivity of a company is Environmental Scanning. Theoretically, it is a type of scanning or market analysis that can be used by the companies to glance at the environment in which they are likely to flourish through different tools and models (McGee, 2014). The two main models that could be used for the same purpose are Strengths, Weaknesses, Opportunities, and Treats (SWOT) Analysis and Porter’s Five Forces Analysis. Collectively it will let the companies understand their internal and external threats that could be influential over the productivity of the company. It is likely to apply the same technique on the selected company. The below is an SWOT example diagram.

The next important model that could be used for the same aspect is Porter’s Five Forces Model. This is the most important and widely used Environmental Scanning model that is utilized for the purpose of analyzing the environment of a company in a professional and effective manner (Rotharmel, 2017). This particular tool has been designed in a way that it can evaluate the intensity of different influences and forces to the company.

The first element of the Porter’s five forces analysis is rivalry among the competitors. This first element allows the companies understand the rivalry, advertisement expenses, and the competitive strategy between their competitors and their peers. The treat of new entrants includes aspects such as barriers to entry, capital obligations, access to distribution, customer loyalty, and network effect. The bargain power of buyers defines customer’s sensitivity and willingness of purchase due price changes. It includes elements such as bargain advantage, product substitution, price sensitivity, and the total amount of trading.

The threat of substitute product or services describe alternate product available to customers. It includes elements such as customer tendency to substitute, price of substitute goods or services, product difference, and quality reduction. The bargain power of suppliers describes their ability to maintain raw materials, labors, services, and equipment. Some of the elements are substitute inputs, labor unions, and supplier competition.

Current Opportunities

Analyzing the current opportunities in the market is another major factor that associated with the company’s market planning (Rotharmel, 2017). Current opportunities mean the line of opportunity through which the company can maximize their potential in the market. This particular factor of the market planning enables an organization to analyze the current level of opportunities, and the strategies underlying with the same factor.

Since every company is likely to increase the financial potential, therefore analyzing the current opportunities is an important aspect that can enable an organization to maintain their effectiveness in the market. Opportunities not only analyze the income potential of the companies, but it also analyzes the amount of competition in the market with the peer so that proper strategies could have been made and implemented in the analysis to yield a positive and effective result at the end of the company’s operations in particular.

References

Birkinshaw, J. (2004). Strategic Management (1st ed. p. 56-90). Northampton, MA: Edward

Elgar Publication

McGee, J. (2014). Strategic Management (1st ed. p.12-40). Chichester:Wiley

Ratharmel, F. (2017). Strategic Management (1st ed. p. 45-88). New York, NY: McGrawl-Hill

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