The Importance of Understanding Consumer Behaviour and Profiling Target Market for Effective Communication Strategy

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The importance of understanding consumer behaviour and profiling target market for effective communication strategy It is of an utmost importance that any company that deals with consumers as their main resources for profit to recognize who their buyers are. Although it is not possible for marketers to completely grasp the very essence of each target market and categorize them in proper groups, one cannot deny that there are certain patterns which a similar group of consumers follow up to some extent and knowing that solves a lot of problems in marketing. The power to be able to place these target markets correctly to certain marketing communication strategy effectively will definitely present a great opportunity for business companies to expand and innovate their product offerings to produce excellent revenues in the long term. By definition, an effective marketing communication strategy represents the success of a company’s collection of all elements in a brand marketing mix that facilitate exchanges by establishing shared meaning with the brand’s consumers or clients. According to Allen (2009), raising awareness or product in target market is where sales begin, and this is where marketing communications activities begin the selling process. Some companies might rely on paid advertising in print and online media while others might opt for public relations and events. However, no company can be sure that they are using the most effective marketing mix without identifying the perfect target market and aligning them to their marketing communication strategy. The objective of creating the perfect communication strategy is to market products or services by generating awareness, conveying information, educating the market and developing a positive image. “Communications include everything from packaging to the visual look of marketing materials, and from the message you convey to the media vehicles you employ to the materials used by your sales force and the attitude of your customer-service staff” (Stengel 2000). Overall, any communication effort is effective when they show a consistent and persuasive message. Before consumer behaviour is understood, the first step should be profiling the target market to effective marketing communication strategy. There are several objectives as to why a company needs to profile their target market to effective marketing communication strategy. In Customer Profiling Benefits (2007), one of the aims is to understand untapped market potential. An accurate profile of customers allows a company to create an analysis of market areas or neighbourhoods to understand the penetration rates to where the market potential exists for products and services. Another aim is to improve targeted marketing. By identifying and understanding the customers in the clusters where the highest penetration is, target marketing or business activities can be done to those who are most likely to make purchasing. Response rates and ROI can be improved by precisely marketing to prospects with offers that will appeal specifically to them. The final aim is to choose better sites. Customer profiling is a key analysis necessary to project the size of the total market opportunity, and project revenue and customers for new or planned locations. Few companies can make successful site selection decisions without first understanding customer profiles. Taking for example, a research has been done by the University of New England on the importance of segment profiling to reduce strategic risk in higher education management. According to Rindfleish (2010), the technique of segment profiling is successful in reducing the strategic risk of management decision-making by identifying the specific needs of market segment within geographic regions where marketing efforts would be most productive. Pusey (in Rindfleish 2010) states that the need to compete with other universities for student enrolments has exposed management practice to...
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