Demographic Importance To Marketing Strategies

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Table of Contents

Introduction
Conclusion
References

Introduction

Kudler Fine Food intends to increase its customer base and is in the process of creating an Integrated Marketing Communications (IMC) plan that will be used to ensure that the plans they will lay will be met. This will be achieved by following the laid out integrated marketing communications plan.

This document therefore assesses the importance of demographic and psychographic information in the development of marketing strategies. It also explains when to use this data in making marketing decisions.

The importance of demographic and psychographic data is analyzed by this paper and its importance is also evaluated.

These data is important to any organization and analysis of their importance needs to be done by any company that plans to increase its customer base. The paper also deals with the position strategies against competitors and when to apply segmentation when dealing with the market that Kudler Fine Foods Company deals with.

The use of demographic, psychographic, geographic and behavioral segmentation in making marketing decisions

Segmentation is one of the most important elements while marketing products. This is the division of the market according to certain criteria (McDonald & Dunbar, 2004). The division of the market may be according to the geographical positions of the customers, their behavior in the market or depending on their demography. The application of any of the above segmentation is dependent on the nature of the market.

Geographical segmentation may prove to be useful in a situation where the people living within a particular area demand a given product. This means that the customers will be divided into these regions depending on their needs. Efforts are made to ensure the specific needs of each area are taken care of. The market should also be analyzed to check the behavior of the customers and how they consume the company’s products.

The consumers may also be categorized as either heavy users of a particular product or light users. Some of them are loyal to a particular product. The analysis of this behavior pattern will be helpful for Kudler Fine Foods. It will enable the company establish how to divide the market in terms of the behavioral patterns. The psychographic segmentation follows the same conditions as the behavioral segmentation.

Demographic segmentation should also be considered. This plays an important role as it divides the market into different groups. This may be according to the age or even the living standards of the consumers. The company also needs to carry out an analysis to determine the consumption of its products following these lines.

This will ensure that all the categories of the consumers are well taken care of. Proper treatment of the current customers may trigger an increase in the customer base when the news about their treatment spreads to the other consumers.

The use of segmentation is also important. In marketing strategies, this ensures that all the different types of the customer’s needs are met. The customers are also divided according to their needs and the products that they consume. This makes it easy to manage the marketing strategies to use for a particular group of customers.

The use of segmentation also makes marketing effective as the different groups of the customers are treated according to their situations. For example an advertisement that is meant for the young people cannot be used for the old group.

This makes marketing effective and efficient. Therefore segmentation as a whole ensures that the market is well taken care of individually for the segments and also collectively as a whole and all the customers are reached.

Importance of demographic and psychographic data in marketing decisions for Kudler Fine Foods

The demographic data as well as the psychographic data that is obtained by Kudler Fine Foods during its research is of great importance. The availability of both psychographic and demographic data will help Kudler Fine Foods to be able to countercheck the current strategies it is employing and improve them depending on the needs of its consumers.

The data also enables the company to come up with decisions that are based on tangible research. Availability of the data ensures that accurate forecasts for the company are carried out. The findings of these forecasts can therefore be trusted since they are conducted after research has been carried out.

It also provides the company with information about its consumers and this will help to identify the areas to focus on more in terms of its marketing strategies. It also helps the company to identify what strategies to employ depending on the nature of the market (Hutt & Speh, 2002).

Positioning strategies

The first positioning strategy that the company may employ is the pricing strategy. Since the company intends to improve the efficiency of its operations, the price of producing or importing its products will gradually reduce.

This can be used to the advantage of the company by ensuring that the prices of its commodities are also reduced. The use of this strategy may also help the company in dealing with its competitors. The reduction of the price will ensure that the company gets more customers as the prices of their products are less compared to those of their competitors.

Another positioning strategy that may be employed is the positioning based on the use of the products they produce. Proper analysis should be carried out to ensure that the demand for the various products that the company offers at different periods is established.

This is important since it will enable the company to establish the products that have a higher demand at a given time. This ensures that the consumers are always satisfied.

The other positioning strategy that can be implemented is based on consumer benefits. This may be implemented in the form of a loyalty program. The consistent consumers of a product in this case are rewarded as a result of consuming the product. This will serve to mainly attract the younger generation who are more attracted by the incentives.

The new customers will therefore increase the consumer base of the company and therefore its profitability. The company should also promote itself by enlightening the consumers about their imported products. This may sound more appealing to some of the consumers who have the belief that imported products are better than the locally manufactured products.

Conclusion

The demographic and psychographic data is important while developing the marketing strategy for any company. This is because it provides the company with the actual details on how the market is. The positioning strategies are also important and mainly because they give the company an upper hand against the other competitors.

As it has been explained, strategies such as the provision of benefits to the customers acts to assist in ensuring that the competitors are taken care of since the customers become loyal to the company and its products.

Proper analysis of demographic and psychographic data should be conducted before making important business marketing decisions since the result of the analysis of this data will provide a good base for the company’s decision making. The position strategies that are developed by the company should also be based on information that is obtained after analysis of this data.

References

Hutt, M. D., & Speh, T. W. (2002). Business Marketing Management. Ohio: South Western.

McDonald, M., & Dunbar, I. (2004). Market Segmentation. London: MacMillian.

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