Brand Strategy and Integrated Marketing Communication, Essay Example

Introduction

Effective market segmentation strategies include demographics, psychographics, and geographics. However, each of these strategies is influenced by academic disciplines, such as psychology, sociology, and economics. This is important because each discipline listed above assists in understanding consumers and the marketplace. The report begins with a short summary of the market segmentation strategies. Following this, the report continues to discuss the contribution made by each discipline.

Market Segmentation Strategies

As noted, the market segmentation strategies include demographics, psychographics, and geographics. Each of these is useful in individual ways. For instance, demographics market segmentation strategies are designed to market products and/or services according to “age, gender, family size, family life cycle, income, occupation, education, generation, ethnicity, nationality, religion, or social class” (Goyat, 2011). This allows companies to focus products and/or services according to what perceived needs and/or expectations are. Psychographics market segmentation strategies are designed to market products and/or services according to “interests, activities, opinions, values, or attitudes” (Goyat, 2011). This allows companies to focus products and/or services according to particular beliefs. Geographics market segmentation strategies are designed to market products and/or services according to “region (continent, country, state, or by neighborhood size), size of metropolitan size (according to population size), population density, and climate” (Goyat, 2011). This allows companies to focus particular products and/or services to where they are needed. For instance, when using geographics market segmentation, a company selling snow boards would not likely market in Texas.

Psychology

Psychology has a tremendous influence on marketing segmentation strategies. To begin with, psychology is the study of the mind. Thus, this discipline helps companies to see how consumers think. This is influenced by the fact that “market segmentation focuses on that subset of prospects that have the greatest potential of becoming customers and generating revenue. Companies who segment their markets match their strengths and offerings to the groups of customers most likely to respond to them” (Goyat, 2011). As a result, companies can utilize psychology to determine what strengths exist in the target market. This may be most closely related to psychographics market segmentation. This is because, as noted, this segmentation is based on personal beliefs. Thus, since personal beliefs are part of how the mind works, it is effectively considered utilizing psychology.

Sociology

Politics is a great part of sociology. Specifically, understanding the reasoning behind politics is a great part of sociology. Therefore, sociology influences political segmentation. For instance, it was noted that “honesty, integrity and transparency are highly prized by voters” during elections (Gardner, Rees, & Tsianti, 2005). Thus, market segmentation has grown tremendously in strength. For example, it is necessary to better understand “the organization’s potential clients so that successful marketing planning and implementation can be executed. However, organisations are recognizing that it is not enough to be ‘just’ consumer oriented – they need to be market oriented” (Gardner, Rees, & Tsianti, 2005). Therefore, sociology has independent influences on market segmentation. This is because sociology is based on studying people. This coincides with market segmentation’s definition that it is a means of “defining customers in terms of what they want or will accept from a product or service at what price and also the best way of accessing these” (Gardner, Rees, & Tsianti, 2005). This is congruent with demographics and psychographics market segmentation strategies.

Economics

Market segmentation has different criteria than it used to. This is partly due to economics. Since economics is based on consumer wants and demands, it is important to begin by understanding how economics has influenced market segmentation. Since the world continuously changes, marketing segmentation strategies now encompasses beliefs that “traditional demographic traits such as age, gender, education level and income, no longer said enough to serve as a basis of market segmentation. Non-demographic traits such as values, tastes, and preferences were more likely to influence consumers’ purchasing than demographic traits. Sound marketing strategy depended upon identifying segments that were potentially receptive to a particular brand and product” (Goyat, 2011). Using economics, companies are better able to address these needs.

Conclusion

These disciplines can be combined to meet marketing needs. This is through integrated marketing communication (IRC). Importantly, “integrated marketing communication is defined as a cross-functional process for creating and nourishing profitable relationships with customers and other stakeholders by strategically controlling or influencing all messages sent to these groups and encouraging data-driven, purposeful dialogue with them” (Dewhirst & Davis, 2005). Psychology can help in this goal by helping companies know how to communicate with their target market. Thus, psychology teaches companies how to determine what is in their target market’s minds, allowing the company to specify products and/or services to meet these needs and/or wants.  Sociology is instrumental in helping companies know what is needed in terms of products and/or services. This is because sociology is focused on the study of people and how they interact with their environments. Economics is crucial to market segmentation strategies because it helps the company know what the consumer wants and what they are willing to pay for it.

References

Dewhirst, T., & Davis, B. (2005). Brand Strategy and Integrated Marketing Communication. Journal of Advertising, 81-92.

Gardner, H., Rees, P., & Tsianti, M. (2005). Still Silent — Political Market Segmentation and the Case of Ethnic Women. Journal of Marketing Management, 1161-1178.

Goyat, S. (2011). The basis of market segmentation: a critical review of literature. European Journal of Business and Management.