Knowing more of your customer and the evolution of the
nature of your market requires a thorough examination and study in the most
recent time as possible. The text of
Ferrell and Hartline discuss very well the importance of customer segment
analysis after the intensive study of the SWOT analysis in chapter 5. SWOT
driven strategic planning allows the company to freely gather information that
are more intangible behavior towards the organization either internal or
external. Potential issues that must be
considered in strategic planning in marketing are usually intangible components
that are gathered during the SWOT analysis.
International strengths that we can consider are for example abundant
financial resources. Ample amount of
financial capital of the organization is obviously the main driver of the
organization to pursue the many marketing challenges at hand. Another strength that
we can consider is the well-known brand name that is being used by many of the
known brands of today. Gillette for
example has the advantage when it comes to the brand recognition among the
customers. Good brand or well-known
brand has always the advantage in terms of the market recognition and overall
popularity. Relatively, known good brand will later achieve a good ranking that
most of the internationally known products are already enjoying. Another important
factor that one must consider in terms of theory and practice of the
organization is how can the organization achieve a satisfactory economy of
scale. Economies of scale is important for the internal strength of the
organization as to how fast and flexible the mobility of goods and services
being rendered by the organization towards its stakeholders. Furthermore,
technology is a part of internal strength as well considering the fast and
precise service rendered by the organization if high technology tools are being
used to achieve the task given. Cost
will follow if time and technology application are not well managed. Lower cost along the supply chain are mostly
the objective of every manager in an organization. Human resource talents and better marketing
skills are also part of the internal strengths.
In a parallel situation, common internal weaknesses are
also a part of the organization that manager must give great concern. Though some marketing theorist argued that
Internal Strength must be magnified as the main driver of strategy and planning,
but I believe that weaknesses can’t be ignored in terms of the actual operation
of business along the supply chain or value chain. First weakness that is mentioned in the text
of Ferrell and Hartline is the lack of strategic direction itself. This fundamental weakness of the organization
will direct to the whole concepts of the subject strategy and planning. Parallel
to the financial capital abundance of the organization less financial capital
will lead to less marketing operation and rigorous testing and research. Financial capital is always a necessity in
marketing operation not only in gathering good data that will be discussed in
chapter 6 in the text of Ferrell and Hartline. Product line and the variety of
product choices of the market is always the key for wider scope of market
dominance. Internal
operating problems and internal political problems are mostly the internal challenge
that will slower the operation.
Sometimes in an organization the given problem is far too simple to
solve when theories and conceptual solutions are considered but if the realities
of politics that will affect the whole operation of the organization and will
cause melt down in terms of the effective marketing operation of the
organization.
External aspects that we
can consider in terms of the opportunities are the common behavior of the international
market today which is the rapid market growth.
Market growth that is driven by customers now a day is the greatest concern
of every market practitioner. Thus, one must consider the most recent data
gathering output with a robust crunching of the raw data interpreting in real
time with exact market interpretation showed in the marketing dashboard for example. Furthermore, as market growth moves rapidly
economic boom in terms of the foreign players lead by the top conglomerates are
the key driver of rapid market evolution with the fast upgrades of the
technological gadgets and tools of the modern companies of today. Another
tricky part in strategy and planning in terms of marketing that modern
organization must consider is the demographic shifts. That is why constant data output analysis and
interpretation must be considered to allow the actual knowledge shift of the
Demographic. If any given organization can decipher and
conclude the marketing strategic plan for any resent demographic change then
organizational versatility and adoptability is achieved with accurate marketing
plan and strategy reaction towards the demographic change. On the contrary, common external threats like
entry of foreign competitors bringing new technologies for example will affect
the customer needs and taste and eventually the whole customer demographic
change. Thus, Ferrell and Hartline emphasize in chapter 5 the ability of every
organization to convert Weaknesses to Strength and Threats to Opportunities.
What is important for every company or
organization is to recognize the weakness and threats and convert all the
negative aspects in the marketing operation into a positive one. If any given organization has the expertise
and ability to turn negative weakness and threats into a more positive strength
and opportunities that requires a comprehensive data reading and analysis to
precisely segment the customer and execute the right strategy and plan for the
given demographic. The introductory case
in chapter 6 of Ferrell and Hartline publication is the effectiveness of data mining
using the recent high-tech data gathering used by the tech companies in Silicon
Valley today. Yahoo, Google, & Amazon
are the given example of the text that uses the advance data mining for
marketing strategy and planning. Specifically, google can automatically analyze
their customers and user any segment around the world with their advance online
data analysis algorithm. Thus, buying
behavior online can be detected by google in real time across the web. In short, all the buying process online are
monitored by google that key words are important for every detailed finding one
may inquire. Moreover, process is an
important part along the buying and selling in the value chain. Process as what
I mentioned in my previous paragraphs that in the value chain the fastest and the
shortest time of travel will avail the lowest cost as possible will win the price
and cost war between other counterparts and eventually the whole marketing
demographic. On the contrary, analyzing the
market segments drives the key variables into the theory of VALS which is known
as the psychographic segmentation. First are the innovators, this kind of
consumer are well knowledgeable about the product that the new upgrades of the
product segment one will automatically shift to a better technology service
offering.
Second is the thinker, who is knowledgeable of the product that value
comes from the practically of the service offering considering the logical
usage of the given commodity. Third, is the achievers who are more after of the
recent lifestyle trends that they are considered conventional that as a
marketer these kinds of market segment are easier to lure when it comes to new
trends and technological upgrades. Fourth, is the experiencers that these kinds
of demographic require product reviews and actual product testing that in a way
experiencing the product is more relevant to these kinds of customer. Fifth,
are the believers that long time customer loyalty is a great value to these
kinds of customers that drives back to the traditions and cultures both given demographic
and the organization. Sixth, are the strivers who are eager to do their part as
a customer just to get the commodity offered by the organization. Seventh, is
the makers who I considered them as a good resource for product upgrades and
innovation. Lastly, are the survivors who are so cautious in purchasing any
product. Survivors are also loyal to certain brands that if one may choose your
offered product it is hard for these market segment to shift to other
brands. This given theory of VALS is one
of the many theories that can be used to gather different data output in a
given demographic. But as the given case
of chapter 6 emphasize more of the modern high technology company such as
google one may consider that fast and accurate data output and analysis driven
by mathematical computing and AI analysis will further augment new marketing
horizons in the years to come.
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