As a Chief Financial Officer Woodlands, its very critical for you to understand developing brand strategy is extremely critical. The most important asset your company has is its brand. Quite simply, it drives the direction of your business. So you should definitely have a well thought out brand strategy in place.
Increasing competition in business develops similar products with good quality from different manufacturers. But only an effective, innovative and Business Network & planning can make your business and products more popular.
For your profession as Chief Financial Officer Woodlands it becomes your responsibility to stay connected with like-minded supporting industry experts who can guide and help you deal with your day to day work issues.
The Impact Of RFID and the Supply Chain Management
If you are entrepreneurial in nature owning a business is very exciting adventure. It can also be the most difficult thing for you to get into if you are not prepared.
Market segmentation is widely defined as being a complex process consisting in two main phases:
- identification of broad, large markets
- segmentation of these markets in order to select the most appropriate target markets and develop Marketing mixes accordingly.
Everyone within the Marketing world knows and speaks of segmentation yet not many truly understand its underlying mechanics, thus failure is just around the corner. What causes this? It has been documented that most marketers fail the segmentation exam and start with a narrow mind and a bunch of misconceptions such as "all teenagers are rebels", "all elderly women buy the same cosmetics brands" and so on. There are many dimensions to be considered, and uncovering them is certainly an exercise of creativity.
The most widely employed model of market segmentation comprises 7 steps, each of them designed to encourage the marketer to come with a creative approach.
STEP 1: Identify and name the broad market
You have to have figured out by this moment what broad market your business aims at. If your company is already on a market, this can be a starting point; more options are available for a new business but resources would normally be a little limited.
The biggest challenge is to find the right balance for your business: use your experience, knowledge and common sense to estimate if the market you have just identified earlier is not too narrow or too broad for you.
STEP 2: Identify and make an inventory of potential customers' needs
This step pushes the creativity challenge even farther, since it can be compared to a brainstorming session.
What you have to figure out is what needs the consumers from the broad market identified earlier might have. The more possible needs you can come up with, the better.
Got yourself stuck in this stage of segmentation? Try to put yourself into the shoes of your potential customers: why would they buy your product, what could possibly trigger a buying decision? Answering these questions can help you list most needs of potential customers on a given product market.
STEP 3: Formulate narrower markets
McCarthy and Perreault suggest forming sub-markets around what you would call your "typical customer", then aggregate similar people into this segment, on the condition to be able to satisfy their needs using the same Marketing mix.
Start building a column with dimensions of the major need you try to cover: this will make it easier for you to decide if a given person should be included in the first segment or you should form a new segment. Also create a list of people-related features, demographics included, for each narrow market you form - a further step will ask you to name them.
There is no exact formula on how to form narrow markets: use your best judgement and experience. Do not avoid asking opinions even from non-Marketing professionals, as different people can have different opinions and you can usually count on at least those items most people agree on.
STEP 4: Identify the determining dimensions
Carefully review the list resulted form the previous step. You should have by now a list of need dimensions for each market segment: try to identify those that carry a determining power.
Reviewing the needs and attitudes of those you included within each market segment can help you figure out the determining dimensions.
STEP 5: Name possible segment markets
You have identified the determining dimensions of your market segments, now review them one by one and give them an appropriate name.
A good way of naming these markets is to rely on the most important determining dimension.
STEP 6: Evaluate the behavior of market segments
Once you are done naming each market segment, allow time to consider what other aspects you know about them. It is important for a marketer to understand market behavior and what triggers it. You might notice that, while most segments have similar needs, they're still different needs: understanding the difference and acting upon it is the key to achieve success using competitive offerings.
STEP 7: Estimate the size of each market segment
Each segment identified, named and studied during the previous stages should finally be given an estimate size, even if, for lack of data, it is only a rough estimate.
Estimates of market segments will come in handy later, by offering a support for sales forecasts and help plan the Marketing mix: the more data we can gather at this moment, the easier further planning and strategy will be.
These were the steps to segment a market, briefly presented. If performed correctly and thoroughly, you should now be able to have a glimpse of how to build Marketing mixes for each market segment.
This 7 steps approach to market segmentation is very simple and practical and works for most marketers. However, if you are curious about other methods and want to experiment, you should take a look at computer-aided techniques, such as clustering and positioning.
Artificial Intelligence: The Next Tech Bubble or the Changing Face of Technology
With the support of our professional business network, you get the opportunity to exchange experience and knowledge at a top professional level, and to strengthen and develop your own skills within your management and specialist areas.
Through business relationships and experience sharing in confidential settings for Chief Financial Officer Woodlands, we strive to create personal and business value for all our network peers.
Even some 15 or 20 years ago, either in theoretical approach on Universities or practical in the Business, the term Distribution was commonly used for the service within the company that was in charged for moving the goods around, according the needs of sales and customers.
Since Warehousing was separate segment at that time, as a different function within company, the link between Distribution and Warehouse was loosed. It was working, but as the demand of the market was growing, these two functions finally merged into Logistic. Still there were warehouse and trucks, but the border was more transparent, links stronger, some assets shared, cost reduced, service to market better. It was a step in the evolution.
Finally, the next step was integration of Logistics ( Distribution and Warehouse ) with Production and Purchasing into single function - The Supply Chain. Now, under the same roof, all functions that were separate not that long time ago, are now aligned in the sequence.
This new concept of whole Supply Chain was providing the Company to be more agile. Agility is something that companies needed in the time of more and more demanding market, growing competition and expansion of range of categories and products. Simply, the market is becoming more volatile and less predictable.
Also, the modern Supply Chain needs to be more "Lean". This mean that it should not have more stock than needed, asset that could unnecessary slow down response time and increase costs.
So, the Lean and Agile are two key characteristics of a contemporary Supply Chain that is capable to offer sufficient service level for the growing demand.
The ratio between Lean and Agile should be well balanced. The key to this fine-tuning is the right approach to the product portfolio. As there are different products in the portfolio, contributing to the share in sales in different percentage, they should be treated accordingly.
This can be explained through Pareto principle, which says that 20% of the SKUs are 80% of sales share. Since these products are high volume, low variety and predictable, planning of production and stock should be more Lean. This mean no large stocks, focus on efficiency and economy of scale.
On the other end of Pareto principle scale are products that represent 80% of SKUs, but only 20% of sales share. These products are less predictable, so the planning should be more Agile.
Networking has always been considered a powerful tool for improving business prospects, advancing a career, and developing ideas. Other than some brief, structured events, networking has been mostly informal and inexpensive in comparison to cost they otherwise spend on different channels. But membership is growing in many formal, long-term networking groups, and so is the price tag.
Our groups are not groups for generating sales leads, nor are they places where individuals can drop-in to gain quick advice on an immediate challenge. Members also sign a confidentiality agreement and benefits from the guided mentoring to help each other.
These groups include an experienced facilitator and use a structured discussion method to ensure appropriate participation.