1.An attractive target market has six characteristics. Name them. 2.Porter’s Five Forces are Substitute Products, Potential Entrants in the Marketplace, The Bargaining Power of Suppliers, the Bargaining Power of Buyers and Competitive Rivalry. Apply each of these factors to two very different operations within the food service industry, a small frozen yogurt retail shop and a feed lot for cattle. Which business is easier to get into? Which business is easier to stay in? Explain your answer. 3.In order, list the stages in the buying process. Describe what happens at each stage.

QUESTION

1.An attractive target market has six characteristics. Name them.

2.Porter’s Five Forces are Substitute Products, Potential Entrants in the Marketplace, The Bargaining Power of Suppliers, the Bargaining Power of Buyers and Competitive Rivalry. Apply each of these factors to two very different operations within the food service industry, a small frozen yogurt retail shop and a feed lot for cattle. Which business is easier to get into? Which business is easier to stay in? Explain your answer.

3.In order, list the stages in the buying process. Describe what happens at each stage.

4.A marketing strategy can take one of four generic forms — market penetration, market development, product development or diversification. Provide a brief discription for each strategy, being sure to address the kind of market and product each strategy includes.

5.The history of marketing can be broken down into four eras — the production orientation era, the selling orientation era, the product orientation era and the value orientation era. Roughly, during what period of time did each occur? How could each best be characterized?

6.Business to Consumer Marketing Channels can include three categories of intermediaries. Name the three intermediaries and provide a brief description of the function of each.

7.You own a small independent restaurant that you need to promote. You are going to create a promotion plan. You can employ any of the methods included in the promotional mix — advertising, public relations, sales promotion, direct marketing, personal selling. Address each option and determine whether it is likely to be effective for you and whether you will use it. Provide a brief description of how you will specifically use it.

8.There are four general methods of segmenting buyers. Name the four. Provide a brief description of how each method segments buyers and two examples of specific groups or characteristics included in each.

ANSWER

Exploring Marketing Concepts: Target Markets, Porter’s Five Forces, Buying Process, Strategies, Channels, and Promotion

Introduction

In today’s competitive business landscape, understanding key marketing concepts is crucial for success. This essay will delve into various aspects of marketing, including attractive target markets, Porter’s Five Forces, the buying process, marketing strategies, B2C marketing channels, and promotional mix options. By optimizing SEO, we aim to provide comprehensive insights for readers seeking a deep understanding of these concepts.

Attractive Target Market

An attractive target market possesses six key characteristics. These include size, growth potential, profitability, accessibility, competitive intensity, and compatibility. Size refers to the market’s scale, ensuring significant sales potential (Islami et al., 2020). Growth potential implies a market that is expanding or poised for growth, offering opportunities for market share increase. Profitability ensures attractive margins and returns on investment. Accessibility signifies easy reach of target customers through distribution channels and resources. Competitive intensity determines manageable competition levels. Compatibility aligns the market with a company’s mission, objectives, and capabilities.

Porter’s Five Forces

Porter’s Five Forces framework provides insights into a company’s competitive environment. Let’s apply these forces to two different operations within the food service industry: a small frozen yogurt retail shop and a feed lot for cattle.

Substitute Products: The frozen yogurt shop faces a higher threat of substitutes, such as ice cream or gelato, catering to similar consumer preferences. The feed lot for cattle has fewer substitutes since the demand for meat products predominantly relies on animal feed.

Potential Entrants: The frozen yogurt shop encounters lower barriers to entry due to manageable capital investment requirements (Tegegn, 2015). Conversely, setting up a feed lot for cattle involves substantial investment and adherence to regulations, presenting higher barriers to entry.

Bargaining Power of Suppliers: The frozen yogurt shop may have multiple suppliers, resulting in lower supplier power. However, the feed lot depends on a limited number of feed suppliers, granting them higher bargaining power.

Bargaining Power of Buyers: Individual consumers possess higher bargaining power in the frozen yogurt shop due to alternative dessert options. Meat processing companies may hold stronger bargaining power for the feed lot if they can easily switch suppliers or negotiate favorable terms.

Competitive Rivalry: The frozen yogurt shop faces moderate to high competitive rivalry, while the feed lot experiences lower competition due to limited local alternatives.

Based on these forces, the frozen yogurt shop is easier to enter due to lower barriers, but it faces higher competitive intensity. The feed lot, on the other hand, is easier to sustain due to higher barriers and lower competitive rivalry.

The Buying Process

The buying process encompasses several stages:

Recognition of Need: Buyers identify their need or desire for a product or service, prompted by internal or external stimuli.

Information Search: Buyers gather information through sources like friends, family, online research, or advertising to explore potential solutions.

Evaluation of Alternatives: Buyers assess different options, considering features, benefits, prices, and reputation.

Purchase Decision: Buyers make a decision to purchase a specific product, influenced by factors like price, quality, brand reputation, and personal preferences.

Purchase: The transaction is completed as the buyer acquires the chosen product or service.

Post-Purchase Evaluation: Buyers evaluate their satisfaction, influencing future decisions and perceptions.

Marketing Strategies

Marketing strategies can be categorized into four forms:

Market Penetration: Aiming to increase market share within existing markets and target segments, this strategy involves attracting more customers or encouraging existing ones to buy more. Discount offers, loyalty programs, and aggressive advertising can capture a larger share of the current market.

Market Development: Focusing on new markets or customer segments, this strategy identifies fresh opportunities, adapting the marketing mix accordingly. International expansion or targeting a different demographic are examples.

Product Development: This strategy introduces new products or modifies existing ones to meet market segment needs (Kopp, 2021). Innovation and differentiation create a competitive advantage. Introducing new flavors or catering to dietary preferences are examples in the food service industry.

Diversification: This strategy involves entering new markets or developing unrelated products to diversify the company’s portfolio. Acquiring or launching a chain of healthy fast-food restaurants diversifies a frozen yogurt shop’s offerings.

B2C Marketing Channels

B2C marketing channels encompass three intermediary categories:

Retailers: These intermediaries sell products directly to consumers through physical stores, online platforms, or both. Retailers provide access to products, customer service, and a positive shopping experience.

Wholesalers: While primarily operating in the B2B context, wholesalers can serve as intermediaries in B2C channels. They purchase goods in bulk from manufacturers and sell them to retailers or other businesses.

Distributors: Distributors act as intermediaries between manufacturers and retailers, ensuring efficient product distribution and reaching a wider consumer base.

Promotional Mix Options

In promoting a small independent restaurant, various options in the promotional mix can be considered:

Advertising: Utilizing print, online, or broadcast media to reach a broad audience and create awareness. Advertisements showcasing the restaurant’s unique cuisine, ambiance, and special offers can be effective.

Public Relations: Leveraging media coverage, press releases, and events to generate positive publicity and build a favorable brand image. Collaborating with local food bloggers, organizing charity events, or participating in culinary festivals can enhance public relations.

Sales Promotion: Offering short-term incentives like discounts, coupons, or loyalty programs to attract customers. Promoting limited-time menu items, happy hour discounts, or loyalty rewards can entice diners.

Direct Marketing: Engaging customers through personalized communication channels like email, SMS marketing, or direct mail. Sending exclusive offers, personalized birthday discounts, or monthly newsletters can foster customer loyalty.

Personal Selling: Direct interaction with customers, emphasizing personalized recommendations and exceptional service. Training staff to engage customers, offer menu suggestions, and provide a memorable dining experience can be effective.

Conclusion

Understanding marketing concepts such as target markets, Porter’s Five Forces, the buying process, marketing strategies, B2C marketing channels, and the promotional mix is vital for business success. By optimizing SEO, this essay has provided comprehensive insights into these concepts. Implementing effective marketing strategies and adapting to changing market dynamics can empower businesses to thrive in today’s competitive environment.

References

Islami, X., Mustafa, N., & Latkovikj, M. T. (2020). Linking Porter’s generic strategies to firm performance. Future Business Journal, 6(1). https://doi.org/10.1186/s43093-020-0009-1 

Kopp, C. M. (2021). Product differentiation: what it is, how businesses do it, and the 3 main types. Investopedia. https://www.investopedia.com/terms/p/product_differentiation.asp 

Tegegn, G. G. (2015). Ethiopia livestock master plan: Roadmaps for growth and transformation. ResearchGate. https://www.researchgate.net/publication/283781705_Ethiopia_livestock_master_plan_Roadmaps_for_growth_and_transformation