The Generic Marketing Strategy and The Segmentation Strategy
In any business set up generic marketing strategy can be defined as the ability of a business/organization to have a competitive advantage in comparison to the rest of the businesses that also engage in the same field of production. Competitive advantage grows out of the value that an organization is able to establish for its buyers in a normal scenarios the value of cost should exceed the costs that the organization incurred when creating that products. This way the organization is in a position to effectively compete in the market and still make profit thereby ensuring that the company grows.
Several marketing strategies can be applied to an organization so as to increase sales and ensure that the organization is able to achieve its goals and objectives. One marketing strategy is the use of the mass marketing strategy where the company will focus on the manufacture and the sale of one line of products to all the customers. The importance of mass marketing is that if a company deals with for instance the production of a particular range of cars e.g. Toyota, it will be able to focus all its resources on the manufacture and release of high quality products which will subsequently attract more customer which will in turn lead to increased sales and increased profits (Dalic, 2007).
An organization can also choose to focus on the product variety marketing strategy where the company will manufacture a variety of products for the customer to choose from. This strategy is also good as it will attract the various customers with their numerous tastes. A restaurant can apply this marketing strategy to ensure that they always have customers.
The target marketing strategy is also another profitable approach that focuses on the production and manufacture of goods and services that are specifically meant for a certain target market. The product is then manufactured according to the needs of the target market. This is evident in computer manufacturing companies where there has been a tremendous shift from the manufacture of computers that are physically large to the manufacture of light and portable computers to fit the needs of the target market.
Market segmentation on the other hand refers to a collection of groups or people with certain characteristics that make them to require the same products and services. The common characteristic can be factors such as friendly prices or the high quality of a product. Market segmentation therefore involves homogeneity which means that the group of individuals exhibits a common interest of needs which therefore means that the target market will have the same response to market stimuli (Andreasen, 2002).
Market segmentation will also involve the classification of people on the basis of culture and economic status. A segmentation strategy therefore that is well defined will ensure that the needs of each target market are met and to the standards that the customers expect. Subsequently then the organization will be reputable for the satisfaction of the customers needs and will also be safe from the overproduction of goods and services in surplus that subsequently results to losses (Andreasen, 2002).
In the case of a restaurant for instance, such a business caters for a wide variety of customers who have different needs and liking in terms of the dishes and foods that are served. It is therefore important the business first analyzes the types of customers that they serve which will be easily visible from the food and drinks orders that they make. From the analysis, the restaurant can get an idea on the kind of customer that they usually serve on a daily basis, for example vegetarian, lacto-vegetarian or meatist. The restaurant can also focus on serving spicy and non-spicy dishes. With this variations and segmentations the restaurant will have laid a strong foundation to attract more customers and withstand competition from other restaurants (Morritt, 2007).
References
Andreasen, A. (2002). Marketing in the social change market place. Retrieved from http://public.kenan-flagler.unc.edu/courses/mba/mba260e/Andreasen_JPPM.pdf on 17th may 2011
Dalic, T. (2007). Globalization of Marketing Strategies in the Light of Segmentation and
Cultural Diversity. GRIN Verlag
Morritt, R. (2007). Segmentation strategies for hospitality managers: target marketing for
competitive advantage. Haworth Press
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