Q.
a) Elaborate two (2) bases/variables for segmenting property purchasers' market. (10 marks)
b) Explain the marketing strategies that firms can choose after identifying the best market segment. (15 marks)
(25 marks, 2014 Q4)
A.
a) Refer earlier post Past Year 2011 Q3 - segmentation of market.
The choice of which base or variable is to be used is sometimes hard to decide. The experts have identified some characteristics of the variables so as to make the selection process easier. Refer to the post on Key Characteristics of Market Segmentation bases.
Therefore, if two variables are Demographic and Psychographic, the segmentation of purchasers would be:
Demographic: Characteristic of People - Young Executives, well educated, income of above average. small family, with children and toddlers requiring safety, busy and often not around. Business owners. Young Entrepreneurs, IT savvy.
Psychographic: Use Situation - Benefit of Social Status (lifestyle), club membership with gym, swimming pool, sweat clubs. New and compact living, with amenities nearby like laundry shops, McD Drive Thru and eateries.
Ref:
Own account.
b) Marketing strategies to use when best market segment is identified
Taking the above part a) as example: Demographic+Psychographic segmentation have yield the Best Market Segment as:
Target segment - Young Working Executive, Small Family with Lifestyle of Social Status and Safety, the following strategies can be deployed:
Product design - Small and Medium units of Condominium with children and maid room.
Price range - Medium to Premium price range for the executive and upper class, professionals, and entrepreneurs. High social status is coupled with exclusiveness. Special Pre-launch price and bundle price with Club Memberships, or modern appliances, e.g. water heater, electronic door, etc.
Promotional strategy - Internet publicity with Social Media, advertisement in the lifestyle magazines, Property Showcase, parties, and exclusive club memberships.
Distribution channel - Property salespersons/Agents specially trained to specialize in the exclusive product, Internet savvy, and using graphic diagram with modern gadgets like IPad for 3-D displays.
Ref:
Own account.