Business Marketing For Mortgage Essay: Market Segmentation.

Difference between sales and marketing

Discuss about the  Business Marketing for Mortgage Market Segmentation.

Table 1: Difference between Marketing and Sales

(Source: Boehm and Hogan 2013)

As per the differences, it can be concluded that the concept of marketing is broader whereas the selling concept is very much specific.

Buying decision process is a systematic procedure that a customer likes to go through at the time of buying products.  Five main stages of buying decision process are as follows:

Problem recognition:

Need recognition or problem recognition is one of the most important processes of buying decision. If the customers do not have any need for the particular product, they would never show their interest to buy it. For an example, if one purchaser does not become hungry, this individual would never like to order food.

Information search:

Once the customer identifies the needs, this particular individual would like to gather in-depth information regarding the reliability and availability of the product (Brennan 2014). For an example, before providing an order of food, the customer would like to collect detailed information regarding the product and service quality of that particular restaurant.

Alternative evaluation:

After collecting necessary information, the consumer may change their mind to choose an alternative decision in order to evaluate their mind. For an example, whenever the consumer gets a negative feedback about the particular restaurant where the food has been ordered, this particular buyer can change the decision by purchasing the food from anywhere else.

Purchase decision:

After making the alternative evaluation process, the purchaser finally tend to decide the suitable product and the company from where the purchaser would be able to get the best quality. For an example, after searching detailed information regarding the food quality of different restaurants, the purchaser ultimate takes a final decision.

Post purchase behavior:

After purchasing the product, customer would like to evaluate the adequacy with the actual needs. For an example, after having the food, the purchaser would like to evaluate whether the entire buying decision process has been made successfully or not.

Marketers with the help of various promotional activities can change the entire concept of buying decision process. Customers do not have to take any kind of initiative to identify the quality of products (Cooper and Jackson 2013). The marketers with the help of media tend to reach the doorstep of the customers in order to sell the concept and reliability of their products and services.

Provide five main stages of buying decision process. Suggest ways in which marketers can influence this process

Figure 1: Five stages of buying decision process

Source: (Cooper and Jackson 2013)

Table 2: Difference between micro and macro environment

(Source: Häusermann and Schwander 2012)

Importance of Micro and Microenvironment:

By conducting both the micro and macro environmental analysis, the business experts can come to know the entire internal and the external situation. Therefore, before launching the product, the business experts want to gather a deep insight regarding the strengths and weaknesses of those factors. The business strategies have been formed after analyzing the environmental factors. On another way, it can be concluded that business persons are the micro as well as the macro environmental analysis is important to make an effective business plans and policies for the organization in order to reach the target.  

Customer behavior is the study of an individual purchaser before buying a particular brand or product. In order to purchase a specific brand, the customers like to gather sufficient information regarding the brand. However, the factors that primarily influence the entire customer behavior are as follows:

Cultural factors:

Business organization should focus to make their brands and products for the people of various culture and background. Those organizations, which aim to manufacture their products for a special cultural group, have to face many difficulties to collect the sufficient target consumers (Hutt and Speh 2012). McDonald is primarily famous for the fast food. Therefore, people of various culture and background like to choose McDonald as their primary choice.

Social factors:

Business organizations like to make particular products targeting a specific age group from the society. Apart from the age, social factors include gender, place and origin of the target consumers. For an example, young generations are the primary target for the e-commerce retail business organization. Therefore, the business experts like to make the business strategy in such a way that it can easily draw the attention of the young customers.

Psychological factors:

As per the motivation and perception of the target customers, the products designers of an organization likes to design their products.  

Personal factors:

Business organizations like to form their business strategy as per the values, beliefs, ethics and culture of the consumers where the organization belongs.

Marketing planning process primarily aims to ensure how the how the organization would be able to reach the marketing aims and objectives. The primary stages of marketing planning processes are as follows:

• Determining the actual mission and vision of the organization
• Evaluating the resources that are available inside the business organization
• Analyzing the opportunities as well as the risk factors
• Making an effective plan and policy regarding the marketing strategy
• Implementing the marketing plan with entire process of business

The role of marketing mix:

What is the difference macro and microenvironment? Why is it important for organizations to analyze both the two concept?

Marketing mix is one of the most effective tactics based on which different business organizations like to promote their brands and products by utilizing the popularity of media. While promoting the brand, the marketing managers like to concentrate primarily on four ps including price, product, promotion and place. If these four factors have been maintained strictly, this particular business organization would be able to reach the doorstep of the target consumers.

Triple button line is the systematic framework of business accounting consisting of three stages. The stages include social, environmental and financial. Most of the renowned organizations like to follow triple button line in order to enhance the level of their performance in broader level. Before introducing any kind of business plan or management strategy inside the organization, social, environmental and financial analysis is highly important. If the financial strength of an organization fails to promote their brands effectively, the organization would never be able to run their business process successfully.

Similarly, environment and the social structure are major factors as well for maintaining the business rhythm (Johnson, Ringham and Jurd 2013). Environmental factors include political, technological, legal and socio-cultural. After evaluating these environmental factors, the business organizations like to make their business strategies and policies to achieve the business goal. Therefore, the performance of an organization is highly dependent on triple button line.

Customer segmentation is primarily been conducted in three different ways. These include geographical, demographical and psychographic segmentation.

Geographic:

The marketing executives like to segment their market or the target customers as per the geographical area. Geographic market segmentation is constituted with several advantages. As per the particular region or the country, the marketing managers like to segment the people from various geographical areas as per their culture, ethics and beliefs.

Demographic:

Demographic market segmentation is based on age, life style and income status of the people. As per the demographic market segmentation, the business organizations select to manufacture their product based on the people from different income status (Li et al. 2013). Therefore, it is highly important to select the target consumers as per their age group and life cycle stage. For an example, McDonald likes to select their target consumers from 12 to 40 age-group of people in order to provide fast food.

Psychographic:

Psychographic market segmentation is completely based on the values, beliefs and ethics of people. As per the persons’ lifestyle and the beliefs, organization likes to design their products to draw the attention of different kinds of people. For an example, TESCO PLC had launched a project named as Eat happy. This particular project has mainly focused to draw the attention of parents in order to provide health foods to their children. Tesco intended to provide simple food product in a different way. Parents who are very much restricted towards their children and unwilling to allow their children of having outside foods have showed their interest to purchase the products of TESCO. 

Explain four main factors influencing consumers’ behavior

Four different types of business organizations include Retail organizations, restaurant and hotel industry, technological organization and finally electronic organization. The primary characteristics of retail organization are to attract the customers’ attention by providing numerous attractive products. Retail organizations are mainly based on customer relation system. That is why the renowned retail organizations such as TESCO, ASDA, and Woolworth mainly concentrate on providing effective service to the customers by maintaining the designing of the products.

Restaurants and Hotels industries generally primarily focus on maintaining the quality of products. Customers would like to show their attention only when the service providers would be able to maintain the quality of products. Product quality for a hotel industry is more important than the service process (Möller 2013). At the same time, it is undeniable that service providers should maintain a balance in between the supply and demand to satisfy the customers’ needs.

Electronic organizations’ characteristics are to provide innovative features to the customers so that they show their interest to purchase the products and services to this organization. For an example, Samsung has occupied a predominant place in the market due to the innovative features and designs of their products. Finally, technological company always focuses to deal with the customers by providing innovative techniques be it software or hardware (Wilkinson and Young 2013). B2M solution has been one of the well-known Android developers popularly known in Australia. With the help of innovative technology, this particular organization has expanded their business in various multinational countries as well.

Market segmentation helps the business organization to select the target consumers categorically. With the help of social media, the business experts are able to catch the attention of people of different geographical areas. As a result, the organizations get the opportunity to know their target consumers first and their respective needs and demands. As per the needs and demands of the customers, the organization likes to prepare their market strategy.

For an example, Amazon.com is a famous retail e-commerce business organization. Before designing their product, this particular online portal has already chosen their target customers as per geographical, demographical and psychographic segmentation. It has been observed that young generations are the maximum users of this particular business. Therefore, they have designed their product especially for the young generation. Without making market segmentation, this organization would never be able to segregate their target consumers.

Traditional four Ps include product, price, place and promotion. Before using the service of a business organization, the customers should know the product availability and its quality. Therefore, in order to promote their brand, the marketing managers should provide a clear overview about the product and its quality (Wedel and Kamakura 2012). Quality can be explained by highlighting the ingredients of the products. Price is another factors based on which the customers tend to decide the quality of product. Therefore, mentioning the price level is one of the most effective strategies for the business experts for drawing the customers’ attention. Place is important at the time of promotional activities. The products should be available to those places where the consumers can easily avail. Otherwise, they would lose their interest to purchase the product. Promotion is one of the biggest ways to reach the doorstep of the customers (Wilkinson 2013). Without conducting a successful promotion of any kind of products, organization would never be able to draw the attention of the customers.

Reference List:

Adelino, M., Schoar, A. and Severino, F., 2012. Credit supply and house prices: evidence from mortgage market segmentation (No. w17832). National Bureau of Economic Research.

Boehm, D.N. and Hogan, T., 2013. Science-to-Business collaborations: A science-to-business marketing perspective on scientific knowledge commercialization. Industrial Marketing Management, 42(4), pp.564-579.

Brennan, R., 2014. Business-to-business Marketing (pp. 83-86). Springer New York.

Cooper, P.D. and Jackson, R.W., 2013. Applying a services marketing orientation to the industrial services sector. Journal of Services Marketing.

Häusermann, S. and Schwander, H., 2012. Varieties of dualization? Labor market segmentation and insider outsider divides across regimes. The age of dualization: The changing face of inequality in deindustrializing societies, pp.27-51.

Hutt, M.D. and Speh, T.W., 2012. Business marketing management: B2B. Cengage Learning.

Johnson, L.W., Ringham, L. and Jurd, K., 2013. Behavioural segmentation in the Australian wine market using conjoint choice analysis. International Journal of Wine Marketing.

Li, X.R., Meng, F., Uysal, M. and Mihalik, B., 2013. Understanding China's long-haul outbound travel market: An overlapped segmentation approach.Journal of Business Research, 66(6), pp.786-793.

Möller, K., 2013. Theory map of business marketing: Relationships and networks perspectives. Industrial Marketing Management, 42(3), pp.324-335.

Wedel, M. and Kamakura, W.A., 2012. Market segmentation: Conceptual and methodological foundations (Vol. 8). Springer Science & Business Media.

Wilkinson, F. ed., 2013. The dynamics of labour market segmentation. Elsevier.

Wilkinson, I.F. and Young, L.C., 2013. The past and the future of business marketing theory. Industrial Marketing Management, 42(3), pp.394-404.