Extended marketing strategy that will help Green Kinetic Ltd. Successfully. (ArkansasWriter)
GREEN KINETIC LTD. ASSESSMENT 2 MMK101 TRIMESTER 1SEGMENTATION, TARGETING AND POSITIONING STRATEGY
STUDENT NAME: AHMAD ABDALLAH
STUDENT NUMBER: 217375759
ContentsGREEN KINETIC LTD. 1
ASSESSMENT 2 1
MMK101 TRIMESTER 1 1
SEGMENTATION, TARGETING AND POSITIONING STRATEGY 1
2.1. Industry, Product and its relevant factors Overview 2
2.2 Market Segmentation 3
2.3 Target Marketing 4
2.4 Differentiation and Positioning 5
Green Kinetic Ltd. 5
Reference List: 6
2.1. Industry, Product and its relevant factors Overview2.1.1. Energy Industry and Green Kinetic Ltd. Product.
Industry Overview | One focus in the energy industry that has been developing and growing, is renewable energy, and aiming to produce energy without having waste products in the atmosphere, for example solar energy, wind power etc. |
Product description | Green Kinetic Ltd.’s new product also takes part in the industry because it produces energy in devices without having waste products. It generates electricity into personal devices through physical movement, such as walking, biking, dancing etc. Its size is small and can be carried around, or attached to a bike, or forearm etc. |
2.1.2. Macro Environment
Technology | Technology was seen to be vital since it is the way a product is shaped, and it creates customer interest. Green Kinetic Ltd.’s new product outweighs other competitors with the technology involved in the product since it uses a new patented multi-layer chemical system that produces charge with the slightest of movements. |
Natural | . The product also supports the natural environment resources which gives Green Kinetic Ltd. a better connection with groups and organizations, and brings uniqueness to its environmental policies. |
2.1.3. Micro Environment
Customers | . One of the most important aspects in the micro environment and in general, are the customers. Customer satisfaction is critical for the promotion of the product, and increasing its life-span. Customers who have strong environmental beliefs, or ones who want to help sustain energy, would be interested with Green Kinetic Ltd.’s product, since it is of high technology and quality, and it is simple to use. Customers make, or break the company’s market status. |
Intermediaries | . For Green Kinetic, the new product is of high quality, so another micro environment factor which should be focused on is the intermediaries, which help promote the technology of the product and its purpose, thus creating a strong relationship between clients and providers. |
Every market’s aim is to attract and satisfy consumers with similar interests, beliefs, and desires. Considering the number of potential consumers, who are mixed with many other consumers of different characteristics, and interests, the market needs to be broken down into precise segments to match the right consumers (Madeira et al. 2015). There are various segmentation categories, but with Green Kinetic Ltd., the marketers should focus on geographic, demographic and behavioural. Geographic segmentation consists of targeting specific geographical areas such as regions, or neighbourhoods (Armstrong et al. 2015). Green Kinetic Ltd. should target green, and conserved neighbourhoods and regions where many individuals exercise. As well as, government areas which support the conservation of energy and allow individuals to take part in developing renewable energy. Green Kinetic Ltd.’s product would heavily benefit such areas with its cutting-edge technology, and simple purpose. Think about it, by simply attaching this device to your bike, or yourself, you generate your devices and take part in conserving energy! Demographic segmentation is based on variables such as gender, age, income, education (Vallespín, Molinillo, Muñoz-Leiva 2017), but Green kinetic should focus on the age. Age controls the capabilities of a user, and has an impact on their actions and that is because different users process, store and apply information differently (Vallespín, Molinillo, Muñoz-Leiva 2017). The elderly would not be as active as younger users, children would not have a clear understanding on the purpose of Green Kinetics’ product, and many teenagers, let’s be honest, would not want to have to move to power their devices, so Green Kinetic should target users aged between 20-35 which would have a good income, and a better educational perspective on renewable energy. Lastly, behavioural segmentation which targets users with frequent use of a product based on their attitudes and beliefs, and this segmentation is the focal point for addressing a certain product in the market (Saia et al. 2017). Green Kinetic should target users who, believe that sustaining energy will help increase the life span of earth, and aim to conserve energy in their environment.
Geographic | Demographic | Behavioural |
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2.3 Target Marketing
After identifying the segments, the company now needs to target a certain segment by evaluating some factors. This is critical in marketing because it connects the marketers to the key customers which share common interests and that assists in making an ideal value for the product. For constructive evaluation of segments, some factors should be considered:
The magnitude of the segment and its growth, since it assigns the difficulty level in distributing Green Kinetics’ product (Moscardo, Pearce, Morrison 2001).
The attractiveness of the segment which makes it known, and comfortably reachable (Moscardo, Pearce, Morrison 2001).
The supplies of the company and its purpose (Armstrong et. Al 2015).
With Green Kinetic, the marketers need to participate more in the behavioural segment because their product activity plays a role in the environment, and inspires the purpose of renewable energy. Considering the development of renewable energy in Australia as discussed in assignment 1, more people would gain awareness on this issue and get attracted to the product which makes reaching them easier. Green Kinetic Ltd. has the supplies and technology to support potential consumers. Using niche marketing, Green Kinetic can attain a praised status and a powerful stature based on the research made on consumer needs. It allows the company to give value to the product, and distribute it more efficiently (Armstrong et. Al 2015). Even though there are drawbacks for niche marketing on the long-run, Green Kinetic could sustain it by making a connection between suppliers and providers/consumers which builds up a strong business environment (Sanfelice 2014).
2.4 Differentiation and PositioningFinally, Green Kinetic needs to make their product stand out from competitors. This is through product differentiation, which considers a variety of marketing attributes such as price, quality, service where the company seeks to position the product to the right customers. (Lauga, Ofek 2011). If the performance of the product satisfies customers, it will create customer loyalty, and that is one of the aims of differentiation (Vera 2016). The positioning of the product is critical because it gives a value proposition for the brand, which proves the aim for high customer value, and drives them on using the product rather than other products (Skålén 2015). To outline the product position, Green Kinetic should make a positioning statement. For example, “For environmentally aware individuals, who aim to conserve energy and take part in it, “Move to Conserve” is a simple, small device which generates your devices using your own kinetic energy, rather than using up electricity at home”.
Quality
Green Kinetic Ltd.
Price
Competitor B
Competitor A
Competitor C
Reference List:Armstrong, G, Adam, S, Denzie, S, Kotler, P 2015, Principles of marketing, Pearson Australia, Melbourne, Vic.
Lauga, D, & Ofek, E 2011, 'Product positioning in a two-dimensional vertical differentiation model: The role of quality costs', Marketing Science, 30, 5, p. 903-923, Scopus®, EBSCOhost, viewed 1 May 2017.
Madeira, AB, Da Silveira, JG, & Toledo, LA 2015, 'Marketing Segmentation: Your Role For Diversity in Dynamical Systems', [Segmentação de Mercado: Seu Papel Para a Diversidade em Sistemas Dinâmicos], GESTÃO.Org: Revista Eletrônica de Gestão Organizacional, vol. 13, no. 1, pp. 71-78.
Moscardo, G, Pearce, P, & Morrison, A 2001, 'Evaluating different bases for market segmentation: a comparison of geographic origin versus activity participation for generating tourist market segments', Journal Of Travel & Tourism Marketing, 10, 1, pp. 29-49, SPORTDiscus with Full Text, EBSCOhost, viewed 1 May 2017.
Saia, R, Boratto, L, Carta, S, & Fenu, G 2016, 'Binary sieves: Toward a semantic approach to user segmentation for behavioral targeting', Future Generation Computer Systems, 64, pp. 186-197, Applied Science & Technology Source, EBSCOhost, viewed 1 May 2017.
Sanfelice, G 2014, 'Hit with one shot: Assessing the drivers of target marketing effectiveness', Knowledge And Process Management, 21, 2, pp. 143-148, PsycINFO, EBSCOhost, viewed 1 May 2017.
Skålén, P, Gummerus, J, Koskull, C, & Magnusson, P 2015, 'Exploring value propositions and service innovation: a service-dominant logic study', Journal Of The Academy Of Marketing Science, 43, 2, pp. 137-158, Business Source Complete, EBSCOhost, viewed 1 May 2017.
Vallespín, M, Molinillo, S, Muñoz-Leiva, F 2017 ‘Segmentation and explanation of smartphone use for travel planning based on socio-demographic and behavioral variables’, Industrial Management & Data Systems, vol. 117, no. 3, pp.605-619, doi: 10.1108/IMDS-03-2016-0089
Vera, J 2016, 'Two paths to customer loyalty: the moderating effect of the differentiation level strategy in the performance-satisfaction-value-intentions relationship', Journal Of Product And Brand Management, 25, 2, p. 171-183, Scopus®, EBSCOhost, viewed 1 May 2017.
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