Problem:
Target Audience & Competition are the next components to be addressed as part of the process of developing a Comprehensive Strategic Marketing Plan. To choose an appropriate target market, one must understand how consumers make purchase decisions. In a 5-6 page report to your colleagues,
Research then discuss the concepts of "needs" and how these needs fit within the stages of the consumer behavior model.
Summarize how you would apply the above discussion to your product/service's target market and the competition. Note: even though you have "created" a product or service, it makes sense to research real companies and products that might be considered competitors
THIS IS ALREADY DONE :
Target Audience & Competition:
The target audience for the financial advisory business is the immigrant population in USA from Asian countries such as China, India, Korea, Japan, etc. Generally, only the high net worth individuals classified against predetermined criteria of minimum net worth, for example, people with minimum net worth of US$ 1 million or more, will be targeted within these communities. The list of such people can be obtained from various companies who are in the business of selling public databases, leads etc. Further, leads can be obtained from various associations/organizations related to ethnic communities.
Since there is no other financial advisory firm catering specially to ethnic markets, our competition is from all other financial advisory firms, big and small, operating in the industry and catering to these segments in their own capacities. The big players like Merrill Lynch, Morgan Stanley, Charles Schwab, Goldman Sachs etc. have the potential to become serious threats once they become aware of this opportunity because they possess brand image and goodwill to capture this market. Even small and local players, who have considerable influence in a particular area, are threats to the company. Therefore, competition cannot be ignored in this case.
Concept of need:
It is important for organizations to first define the consumer needs and then identify consumer segments that have these needs. Then, marketing strategies are developed to target these segments. Once the strategies are implemented, evaluation is done and rectifications, if any are carried out. It is also ensured that strategies are implemented in a socially responsible manner and do not deceive or mislead the consumer.
The major need in this scenario is the requirement of personalized attention, especially suited for the tastes and requirements of ethnic communities, to manage the huge surplus money lying idle with the high net worth individuals in the communities. The existing financial advisory firm lacks the vision and resources to cater to the individual preferences and tastes of the people from these communities. These people need someone who understands their tastes, customs, culture and language, which is absent in current services. These people need to bond with their advisors in order to share their most important asset, ie., money. It is a business of trust and bonding. Therefore, we are trying to hit the nail on the head by bringing together the expertise with personal bonding.
We have first identified a special need, then selected our target segment and developed marketing strategies to target this niche market segment with an innovative range of services. The value proposition to the consumer in our scenario is very clear. The main focus is one the consumer who is getting a value added service not available in the industry. By understanding his needs better than others, we are generating better returns on his investments.
Two broad factors influence consumer behavior and his decision-making. One is the consumer himself whose needs, perceptions of brand characteristics and attitude towards alternative products/services, his personality, lifestyle, etc. influence his behavior.
Secondly, his environment represented by culture, reference groups, society etc. influence his decision. We have tried to identify the correct need of the consumers in this case and tried to bring something, which he perceives as something personalized for him. He feels very associated with this kind of service and can relate himself towards the firm. By including the desired characteristics in the service that he seeks due to his environmental influence, we are trying to influence his decision-making in our favor. IF these Merrill Lynch, they might get superior products but not the kind of personal attention which we can provide.