Marketing Planning for Business Growth
Various factors affecting marketing strategy
Marketing is an important function for business which must be given importance and thus carried out properly. For a business like" Hire My Tandem", that has been significantly attracting customers and is largest business for hiring online tandem bike. It is therefore required to study marketing theories describing segmentation, targeting, and positioning along with consumer behaviour. This report will bring out an effective strategy to set up better position in the market (Budeva and Mullen, 2014).
Segmentation is a strategy in marketing terms that involves division of certain markets into smaller markets of consumers who have common needs and desires related with purchase of goods.There are certain characteristics on which basis, goods and services are divided such as age, gender, location or income too. It is significant to divide the market into segments and determining the target markets as it will help in understanding the criteria for marketing.
There are four different types of segmentation that can be suggested to “Hire My Tandem” cycle hiring service. They can understand their target market and thus define area to setup and expand their business.
Geographic segmentation: This type of segmentation involves dividing the market on the basis of states, regions, countries, languages etc. It has been evident that east London is already involved in providing the services of hiring cycles, so another market needs to be chosen that allows developing better customer base in the market according to location. This can be significant for Hire My Tandem as this would bring out an opportunity to market and expand internationally (Lilly and Nelson, 2003).
Demographic segmentation: Demographic segmentation is another that is based on age, gender, occupation and the level of education that would help understanding the market and dividing it on this basis. This would allow the firm to understand the age of people that have a demand of cycles. It is described that these cycles are hired for different purposes like wedding, events, charity race etc. that may constitute people with different ages that may require hiring cycle.
Psychographic segmentation: This is a basis of segmentation where the target markets are selected on the basis of behaviour and lifestyle of people or target market. Here the behaviour and interest of people is judged on the basis of activities and opinions of people. This could be helpful for" Hire My Tandem" firm as this would help in understanding the interests of people residing in the target market towards hiring of cycles for different activities (Ashe-Edmunds, 2014).
Behavioural segmentation: This is another criterion of segmenting the target markets and potential base by dividing them according to their knowledge, attitude and usage rate. This can be useful for the “Hire My Tandem” in situation where people move for touring a place and are health conscious and then contact such hiring services.
There are different segmentation criteria that can be used perfectly for “Hire My Tandem” and could define appropriate segmentation criteria for selecting its market. The best segmentation criteria that can be selected are geographic or demographic segmentation for this car service. The company needs to understand that it may have its demand from people with different age groups.This would require company to adopt demographic segmentation that will be helpful in understanding the interests of various groups of people towards hiring tandem cycles (Hassan, Craft and Kortam, 2003). This can also help in estimating interest among people at places like Westminster. This helps in understanding the need of tourists and thus marketing the rental cycle service to those tourists that can participate in activities and may require moving through the city through tandem cycles.
The internet marketing connectivity is another most suitable point that could be helpful in providing better service to tourists and thus build up better customer base for its services. Geographical segmentation can also be appropriate that would be helpful in understanding the area where people mostly demand cycles and tandems to travel. Thus, such an area must be covered and it can be useful in building up strong customer base in city like East London.In terms of covering the target market, there can be certain options like mass marketing and advertising the rental services for tandems that will be helpful in attracting the customers of the market (Aljukhadar and Senecal, 2011). So, by selecting and segmenting the target markets for" Hire My Tandem" by Geographic or demographic segmentation, better scope of acquiring a significant market share can be selected.
There are a number of factors that can affect the behaviour of customers at Westminster towards their purchase of rental tandems. This would require firms like" Hire My Tandem" to understand the varied behaviour of customers and the factors that may impact their behaviour. There are various aspects that may affect behaviour of customers like:
Cultural environment: It is all related with determining the needs and behaviour of individuals. It can be seen that mostly customers are influenced by the behaviour of their friends, relatives or people around them. So, it is significant to influence people through better marketing and promotions that will help in further bringing out potential customers for tandem cycles (Nijssen, 2014). This can be understood by making an example of brand like McDonalds in fast food industry where they have to understand the ingredients according to country and culture. Similarly, "Hire My Tandem" may also involve in targeting markets for cities where people prefer riding cycles or hire such tandem cycles for races, wedding events etc. Also sometimes there are trends that attract people like charity and other events that may be promoted by such Tandem cycles.
Social factors: These are other significant factors that may attract or influence behaviour of individuals towards the service if "Hire My Tandem". This can be understood as people in the society are key forces responsible to create awareness about a product (The consumer factors, 2014). These social factors can also include family; friends and influencing people in the society that may make the customers get attracted towards tandem cycles for use.
Personal factors: These are aspects of every individual consumer that may affect the decision or perception towards these cycles or may be with the services of Hire My tandem. These personal factors may include age, lifestyle, purchasing power and personality of a person. For example, a consumer may believe in travelling through cycles that may be a positive aspect for the firm. Further, the availability of service to customers is yet another factor that would bring more customers to avail its services (Dibb and Simkin, 2013). The online hiring facility provided by "Hire My Tandem" is also significant to attract and influence the behaviour of customers towards the company in a positive way.
Psychological factors: Apart from various other aspects, some psychological factors are also responsible to influence their thoughts towards the company. Like there might be some driving force or motivation that may persuade people to drive on tandem cycles. Still, there may be events like weddings or other charity events that may involve people to promote better donations through riding of tandems. Perceptions, learning, beliefs and attitudes are also important to ensure that people are attracted towards “Hire My tandem” and its significant hiring services.
Thus, all these factors may combine together and influence the purchase decision of customers towards hiring tandems and allowing people to avail all such services. Also the companies like Hire My Tandem may take up these factors while formulating its strategies and bring out better options for consumers in utilizing its hiring services (Boone and Kurtz, 2011). The online hiring system can also be significant for the company, if it is more improved in influencing customer‘s behaviour towards “Hire My Tandem”.
Positioning refers to as strategies that can be adopted by Hire My Tandem, in placing itself in the market successfully in front of the customers. There are various options in which the facilities and services of the company for people and understand the significance of online hiring facility for better positioning in the market (Reynolds and Lancaste, 2013). There are certain options that can be taken up for positioning the services of “Hire My Tandem” in cities like Westminster:
Product characteristics: This means that people may be influenced and company can position itself in markets of Westminster by developing effective features for the services. This may involve focussing on facilities and benefits that company might provide while hiring its cycles to customers, the ease of availability, the design of cycle, experience and location all are equally important for the firm to position in the market. They must also focus that they are able to make the services available at almost all areas of the city that can help in having a better reach upon customers at every end (Aljukhadar and Senecal, 2011).
Pricing features: These are some other features that may enable customers at Westminster to get attracted towards the utility of the product due to its features as well as prices. In order to get settled in the market, price of the product can be significant in positioning it in the market. Furthermore, there might be number of players in the market that may provide rental hiring services to people, so price can be a factor that may help “Hire My Tandem” in differentiating among other companies.
Usability: It is utility of the product that makes it important and famous in front of the customers. Tandem cycles are highly useful in promoting tourism in the city and attracting customers in travelling throughout with its rental hiring service. The extra added service through online hiring is yet another useful feature for the customers and company in positioning itself (Hoyer, MacInnis and Pieters, 2012).
Influencing through culture: culture is also a significant feature that influences the behaviour of customers towards “Hire My Tandem” and its services and suitably position itself in the overall market. There can be certain cultural aspects of Westminster like race and events that can be targeted and these cycles may be hired or issued during these times.Such cultural events can promote the hiring demand of these cycles that will ultimately help it in positioning in the market.
Competitors:In terms of positioning itself in the market, it becomes important for the company to understand its strategies of positioning themselves and further develop own plans accordingly (Cheung and et.al. 2010). “Hire My Tandem” can utilize marketing or promotional strategies of other companies available in the market to develop a strong base of customers.
There are certain aspects of marketing theory and practices that can be utilized by “Hire My Tandem “to develop better marketing strategies for future. These strategies involve describing the segmentation plans and identifying a certain segmenting strategy from the firm. This report also involved deriving a suitable target market and positioning strategies for the company are useful for its success in the market. Finally, this report also involves understanding the consumer behaviour towards "Hire My Tandem" and its services and thereby developing its strategies accordingly.
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