Marketing Management

Case:
“Yuva” is a fitness band catering to Indian youth in the lower price segment. There is a
vast market thatis health-conscious and wants the latest tech in the wearable device
category. There is currently two fitness band that is being sold by the company.

Given below are their prices.

Yuva Basic Rupees 899/-

Yuva Pro Rupees 1199/-

The product quality is good given the price range. It has all fitness feature supported by
colorful design. It has a bigger display as compared to their competitors. The company has
purposely kept the display bigger for the youth audience as they want the feel of a
smartwatch at the price of a fitness band. The company has a plan to sell only through an
online platform. The product is available on the major e-commerce platform as well as on
the company’s website. It has just been 15 days that the product is launched but it doesn’t
have any demand from consumers. There is no problem with the product but there are no
promotions done by the company. You have been hired as a Marketing head of the brand
Yuva.

1. Suggest various types of segmentation for brand Yuva. (10 Marks) 800 Words
Answer:

INTRODUCTION:

Market Segmentation means dividing the potential market into different segments or groups
according to different homogenous bases. A company can target different homogenous groups
according to their behaviour and response towards the commodity or service. Homogeneity,
reaction, and distinction are three bases on which the market is divided. 
It reduces risk by defining which group will be more attracted and be willing to buy a certain
commodity at a certain price. Therefore, a company can carefully and efficiently focus on those
things and groups profitable for them. 

CONCEPT AND APPLICATION:

Let us discuss different types of segmentation for brand Yuva.

● Demographic Segmentation: Segmentation of the potential market in demographic
market segmentation depends on whether the company is running a B2B business or
running a B2C business. If someone runs a B2B business, then the potential market will
be divided according to the type of industry, size of the company, role in the company,
and time in the position. If someone is running a B2C business, then the potential market
will be divided according to age, education, family status, marital status, occupation,
gender, and income.
Now, brand Yuva is running a B2C business. Therefore, they will divide the potential market
according to age, income, occupation, and other mentioned factors and target those who need
their product.
● Geographic Segmentation: Segmentation of the potential market in geographic
segmentation is done based on the consumer's location. Therefore, geographic
segmentation includes locations like a continent, country, city, village, district, and
region. People living in different locations have different needs and desires. It is useful
for businesses that have a limited budget and need to target the best audience without any
wastage. 
Now, brand Yuva can divide the market according to the location and target the segment who is
willing to buy their product and who needs it. The fitness band is used by city people mostly;
therefore, they will focus more on them and focus less on villages.
● Psychographic Segmentation: Segmentation of the potential market in psychographic
segmentation is based on the consumer's personality. The personality of consumers
involves values, interests, attitudes, and lifestyles. Now, dividing the audience based on
their personality will require a lot of research as it is a quite subjective matter. Although
it is a difficult type of segmentation, companies still believe that it will bring a high yield.
 This is so because if a particular audience is targeted whose personality matches the
commodity or service requirement, those customers will become more loyal to the brand. 
Now, Yuva brand can divide the market similarly and can target the perfect audience. Those
people can be targeted whose lifestyle is to remain fit and healthy and those who believe in these
bands. There is no need to attract or put the main focus on those lazy and have no use of fitness
bands in their life.
● Behavioral Segmentation: Segmentation of the potential market in behavioral
segmentation is done based on the consumer's past behavior on the brand of the company.
Therefore, the traits included in this type of segmentation are product knowledge,
awareness of the brand, product rating, previous purchases, etc. The consumer's desires
and needs are kept in mind, along with their behavior towards the brand. 
Now, Yuva can also divide the potential market based on four parameters viz, usage, loyalty,
occasion, and benefits sought by the consumer. And then, the perfect and best suitable segment
can be targeted. And it will be very cost-effective for the business, as it will help the brand
prioritize campaigns accordingly. Now, less or no time will be spent on the uninterested
audience, and ultimately, metrics can be tracked. 

CONCLUSION:

Brand Yuva can use any or all types of market segmentation to segregate the potential market in
different homogeneous segments and target the potential audience, which will be profitable for
the company. It will also help the company in creating better marketing messages according to
the market targeted by them. 

Market segmentation will also help the company to determine the best market approach. For
example, according to the age group that the company has to target, they can use the mode of
promotion and advertising according to the age group. If the youth is targeted, then social media
apps can be used, and if the audience targeted is adults, then emails, newspapers, etc. can be used
for promoting the product. 
Ultimately, it can be said that market segmentation will help in increasing the return on
investment and can help a business to attract the potential audience so that less or no cost is
wasted during the promotion of the commodity or service. Therefore, every business should
adopt different market segmentations for the success of the business.

2. How will you promote the brand Yuva online? Suggest a minimum of five online
platforms through which you will promote the brand and increase the sale. (10 Marks)

Answer:

INTRODUCTION:

Online promotion: Promoting a brand or product or service through internet platforms is known

as online promotion. It is useful when a company wants better exposure of its brand at a
reasonable cost. It increases the brand of a company and helps a company reach more consumers
at a wide range (globally). 

It is better for small businesses that do not have much budget to compete against bigger
businesses. And because of advanced technology, a company can even measure the result of
online promotion, which is not possible in offline promotion through ads in newspapers or
billboards, etc. 

CONCEPT AND APPLICATION:

Let us discuss different online platforms that can be used by brand Yuva for the promotion of
fitness bands. 
● Google Business: It is an online service launched and operated by Google since 2014.
This platform helps gain control over the search results, which is displayed when
someone searches for a business. The business owner verifies its data by claiming a
profile that is already there or by making a new profile. After that, in the Google maps
section, Google My Business appears in the listing when someone searches for queries.
 ● YouTube: YouTube has almost a billion users. A company can reach a wide range of
customers through YouTube as it contains videos in 76 languages. It is an essential
platform for promoting business online. To attract consumers, a company can put up a
video on the user's manual and various advantages. And can also put different important
and related videos to the product. 
● Pinterest: Pinterest is gaining people's attention at a tremendous rate as it allows the user
of the app to share and save/pin the pictures and videos they like and want in the future
by organizing them in different folders with labels. That's why every business, whether
small or large, uses Pinterest to promote their product and brand at a wide range.
● Linkedin:  Millions of business professionals are active on Linkedin around the world. It
is one of the best platforms to promote a business. Along with promoting the company's
product, it is also used to appoint candidates in the company. Almost half of the people of
Linkedin have decision-making authority in the companies they work. Anyone can set up
a profile on Linkedin for free; therefore, it is an economical, affordable, and effective
way of promoting a product, especially for small businesses. It just depends on the time a
company invests in this app. More invested time on the app will lead to a better result. 
● Instagram: It is one of the most used social media app among youth. With this platform, a
company can reach a wide range of audiences and get paid from Instagram after reaching
a certain level of followers. Over billion of people are using this platform. People who
love to shop and rely on social media apps use it to search for new and different products
for them. It can help create loyalty, brand equity, and lifetime user utility. With the help
of pictures and videos, a company can gain the consumer's confidence without even
pitching for sale.
● Facebook: Like Instagram, Facebook is also one of the most used social media platforms
by billions of people. They use the app for social gatherings, meet, or for searching for
places to shop around. Through this, they can easily reach a company's website or place
an order through the app easily. A company can also put images and videos to attract the
consumer to buy its product and services without pitching. 
●
According to the consumers' needs and making their experience better and better, these social
media platforms and apps are making amendments from time to time. It also encourages digital
marketing and helps the business to save costs and time. And this saves in cost and time can have
a good effect on the price of the product as if the company does not have to spend more on
promotion and advertisement, it can lower the price of the product, which can ultimately be
affordable for more people.

CONCLUSION:

These are some of the online platforms which can be used by brand Yuva to promote their
product. As the product they are selling is a fitness band, and it is used by the youth who use
various social media apps, these online platforms are best for promoting the fitness band. It can
also encourage those customers who are lazy enough to neglect their fitness by putting on
various motivational videos regarding good health and fitness. 

The sales of Yuva can be raised by focusing on promotion through the online platform,
especially in the current situation of COVID-19, where people avoid going outside their houses
and want the product at their homes. 

3.a. Explain any five factors that will influence the consumer behavior for the purchase of
Yuva Fitness Band. (5 Marks)

Answer:

INTRODUCTION:

Consumer Behaviour: Consumer behaviour is the study of a consumer's reaction to a certain

product or service regarding what they want to buy and their needs and desires. To know the
potential market that needs to be targeted, it is important to understand the consumer's behaviour
on a new or old product or service. The behaviour of a consumer depends on various factors.
And according to the consumer's behaviour, a company can change their marketing strategies
and various other decisions.
CONCEPT AND APPLICATION:

Let us discuss various factors that affect the behaviour of a consumer.

● Internal or psychological factors: The most important psychological factors that affect a

consumer's behaviour are motivation and perception. Different needs, such as biogenic
needs and psychogenic needs, give rise to consumer motivation for buying a certain
product or service. If a consumer's perception changes towards a product or service, then
the consumer's behaviour will also change accordingly. Therefore, any information that
fits in a consumer's brain will change the consumer's behaviour towards the product or
service.

● Social factors: Various social factors such as family, roles, and status, and reference
groups has a great influence on the behaviour of a consumer. It is said that man is a social
animal. It changes its decision according to social changes. His likes and dislikes change
according to what is in trend in the market, what is used by most people, and various
other factors. 

● Cultural factors: Different cultures of the consumer greatly impact the consumer's

behaviour in buying a product or service. Cultural factors include the culture of a
consumer, the consumer's subculture, and the social class in which the consumer lives
and belongs.

● Economic factors: Various economic factors such as personal income, savings, family

incomes, consumer credit, income expectations, etc. plays a vital role in the behaviour of
a consumer while buying certain good or service.

● Personal factors: Different personal factors that influence the behaviour of a consumer in

buying a good or service are age, occupation, lifestyle, and income of the consumer.

CONCLUSION:

All these factors have a great influence on the consumers of the Yuva brand. And therefore, the
company should keep in mind these factors before making any decision regarding the business
and before targeting a group of audience. If the company considers these factors carefully before
doing anything major, it can achieve great success and increase its sales tremendously.

3.b. Explain various stages that a customer will go through in the purchasing decision of
the Yuva fitness band. (5 Marks)

Answer:

INTRODUCTION:

Buyer decision process: It is a complete journey that a consumer goes through before buying a
commodity. It involves stages starting from getting knowledge of the commodity until the
purchase of the commodity. This process is important for making various decisions regarding
marketing and sales of a product.

CONCEPT AND APPLICATION:

Let us discuss various stages that a consumer goes through in buying a good or service.

1. Problem or need recognition: First of all, the consumer will try to find the answers to the
needs and the main cause of those needs that arise in them. These needs are triggered in
the consumer through internal or external stimuli. Internal stimuli mean hunger or thirst,
etc. External stimuli mean a word of mouth or advertising, etc. 

2. Information Search: After the need or problem is recognized, the consumer searches for
the product or service they want to buy. Different sources can be used for gathering
information regarding the product or service. The information can be gathered through
family, friends, relatives, advertising, dealers, display, packaging, mass media, consumer
rating organization, experimentation, etc. 

3. Evaluation of alternatives: After gathering the information regarding the commodity a

consumer wants to buy, he/she checks various available alternatives in the market.
Consumers use different bases for evaluating different alternatives. Consumers tend to
use various evaluating methods to get the best and affordable product.

4. Purchase decision: After evaluating each alternative, the consumer will select one of the
alternatives and buys it. It means that at the fourth stage, the consumer will buy the
 product or service for use. After considering various factors, the best alternative is
purchased.

5. Post-purchase evaluation: The last step of the buying decision process is to evaluate the
product the consumer has bought. At this stage, the consumer decides whether the
decision made by him is good or not. It means that the consumer will see whether he is
satisfied with the product or not. The satisfaction level can be measured by measuring the
relation between the consumer's expectation and the result or performance the consumer
has received after using the product or service.

CONCLUSION:

These are the steps that a consumer goes through for purchasing any commodity or service. By
keeping in mind these stages, the Yuva brand should strategize and make decisions for the fitness
band's marketing and sales. If the company neglects these steps, then there is a possibility that
the company faces loss.