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Benefits of Market Segmentation for Company Brand Development


12 May 2022
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Market segmentation can help you define and better understand your target market and the ideal type of customer for your product. Usually, this allows you to identify the right market for the product in order to be able to target your marketing strategy more effectively.

 

Using different types of market segmentation allows you to target consumers based on unique characteristics. You can create more effective marketing campaigns and find market opportunities that are more in line with product characteristics. There are eight advantages that can be obtained by companies by segmenting the market.

 

1. Creating a stronger marketing message

Developing a strong marketing message will be easier if you know the company's target consumers. Avoid using terms that are too general or language that is not clear to a wide audience. Instead, use direct messages about the unique needs, wants, and characteristics of your target consumers.

2. Identify the most effective marketing tactics

With so many marketing tactics out there, it can be difficult to decide what will attract a company's ideal customers. Using various market segments will guide you to the best marketing strategy. Once you know the type of customer you are targeting, you can determine the best solutions and methods to reach them.

3. Planning advertising with clear targets

In digital advertising services, you can set target consumers based on age, location, buying habits, interests, and several other things that can narrow down the desired criteria. When you use market segmentation to define consumers, you can identify specific criteria and use these to create more effective and well-targeted digital ads.

4. Attract ideal prospects

If your company's marketing message is clear and in line with the target, it will attract the right consumers. This will help you to make an ideal proposal and can change the status of potential customers to buyers.

5. Give your company a distinctive character

One way to stand out from the competition is to make the value proposition and message more specific. Instead of blending in or even being too similar to other brands, it's best to differentiate your company's brand by focusing on specific customer needs and characteristics.

6. Build engagement with consumers

When you know what your customers want and need, you can deliver and communicate offers that uniquely serve and align with their needs. These different values ​​and messages lead to stronger bonds between brands and customers and create brand loyalty.

7. Identify more specific market opportunities (niche market)

Niche marketing is the process of identifying an industry segment and having a large audience that can be served in new ways. When you define your target market segmentation, you can find niche markets that don't exist yet and that you can develop for new products and services.

8. Focused marketing

Setting marketing targets will keep the message and marketing objectives on track. This can help you identify new marketing opportunities and avoid distractions that lead your company away from your target market.

 

Types of Market Segmentation that Companies Can Use

In applying a strategy, companies can group target customers in several types of market segmentation. The goal is to set a benchmark in reviewing and determining the focus of your company:

Demographic segmentation: a grouping that refers to statistical data of a group of people and is one of the most commonly used segmentations.

Psychographic segmentation categorizes consumers based on factors that are relatively subjective because they relate to personality and characteristics such as personality, values, attitudes, interests, lifestyle, psychological influences, motivations, and priorities.

Behavioral segmentation focuses on the way consumers act such as buying habits, shopping habits, status, and consumer attachment to a particular brand.

Geographic segmentation can refer to defined geographic boundaries (such as cities or postal codes) or area types such as city size or climate type.

Here are some ways to create a market segmentation strategy to complete the stages above:

1. Analyze existing customers

Start the market segmentation process from existing consumers by conducting audience analysis, this allows you to study consumers and identify trends in the customer environment.

2. Create buyer personas

After analyzing and having an overview of your current consumer, the next step is to use your data and create a buyer persona.

Persona buyers are semi-fictional people who are deliberately created with certain descriptions as target consumers. This will clearly describe the figure of the consumer that your company is trying to approach.

3. Identify market segment opportunities

Once you have a buyer persona that describes your ideal customer, start looking for market segment opportunities. Market segment opportunities are trends that can drive new marketing tactics or offerings.

4. Checking your potential segment

Do some research to see what the competition is and whether people are interested in your new market.

5. Test and repeat

If you have an idea to expand your business to a new market, it's a good idea to create several campaigns to test the new idea. When you decide to try a new market, you can follow the development of existing results to see the acceptance of your target customers.

Market segmentation makes your company clear on its targeted consumers and targets. You can get to know your customers, see how to better serve and reach them, and discover new markets to grow your company.

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Employee Engagement, One of the Effective HR Strategies
19 June 2024

One of the determining factors for company stability and success is employee engagement. Behind the company's reputation and success as seen from the outside, it cannot be denied that the active role of the employees is also involved.

So, what is included in employee engagement as an effective HR strategy to support successful company branding?

This concept, which was first popularized by  Gallup Consultants in 2004, is an attempt to understand the relationship between companies and their employees. This thing can be measured both qualitatively and quantitatively.

So what is its role that is called one of the efforts that HR can make to build the success and stability of the company? Read this article to the end to understand the concept, okay?

The Important Role of Employee Engagement

Even though the aim is to contribute to the success and maintain the stability of the company, employee engagement can be seen from two sides, namely the perspective of the company and the employee.

From a company perspective, employee engagement is an effort to assess how loyal employees are at work. This loyalty is not only assessed based on the work completed, but also includes the duration of the work and its quality.

Apart from that, companies also want to know whether employees feel proud of what they do for the company.

Meanwhile, from an employee's perspective, employee engagement is an effort to realize their role in the company. This needs to be known so that the company can continue to support employees so that they remain enthusiastic about working.

Apart from that, it can also foster a sense of having contributed to the company while working at the company.

It can be concluded that employee engagement is not only concerned with the company, but also seen from the employee's perspective. However, basically there is only one goal, namely to help maintain the stability and success of the organization within the company.

Strategy to Increase Employee Engagement

There are several strategies for increasing employee engagement within the company. This strategy certainly needs to be tried for those of you who want to measure how successful this concept is in the company.

The following is the strategy:

Intense Communication

Establishing intense communication can foster a sense of trust between the company and employees, as well as team members and managers. In employee engagement, communication needs to be two-way and intense to understand the company's position and employee opinions.

Some examples of building intense communication are as follows:

  • Hold regular meetings to share important matters within the company and let employees understand the state of the company.
  • Create communication channels that are easily accessible, for example mailing lists, communication groups for short messages or groups on the office communication channels used.
  • Create a digital form for suggestions and criticism when the company holds activities for employees. This is useful for understanding whether employees enjoy or have other input for the program provided.

Rewarding Positive Contributions

Getting to know employees well, appreciating achievements and providing opportunities for self-development is one of the employee engagement efforts. With this, employees feel more positively appreciated and motivated to work harder or be more comfortable in the company.

Opportunities for Self-Transformation

In an era of intense business competition, giving employees the opportunity to transform themselves can be an employee engagement effort provided by the company. By providing opportunities for self-transformation for employees, it can make employees more persistent and improve their skills.

This can certainly help the company in the end. Some examples of self-transformation opportunities for employees are as follows:

  • Providing challenging projects for employees who like challenges at work.
  • Organize training both according to duties and to develop other skills.
  • Make a clear career plan for each employee so that they have a clear picture and make their performance better and more enthusiastic.

Benefits of Employee Engagement

In general, the benefits of employee engagement are improving work results in the company. However, there are several quite significant benefits that can be generated by people engagement as an HR strategy, namely;

Absenteeism Rates Decreased

Employees who feel engaged or feel connected tend to be loyal to their jobs and the company where they work. This is because he may be more motivated and also find the work environment pleasant.

Positive engagement between employees and the company will help improve the percentage of employee attendance.

Increasing Employee Production

What makes a significant difference with employee engagement? Another thing that is quite profitable is increasing the production of employee work.

If this can be applied to the majority of employees, it can certainly speed up the process of realizing the company's vision and mission.

Extending Employee Service Period

Employees will tend to stay in a company if they feel appreciated. This way of appreciating employees is one of the employee engagement efforts.

Employees who feel involved and appreciated will be more enthusiastic about working. As a result, employees will stay in a company for a long time because they believe they can grow together.

Employee engagement is only one of the efforts made by the company through HR. To do this requires skills in leadership and resource management.

These two things are important points and can be learned at prasmul-eli!

Currently, prasmul-eli is opening a short program that will provide material regarding leadership skill development, resource management, innovation strategies and much more. The short program at Prasmul-Eli also presents presenters who are experienced in their fields.
With this, of course you will get a lot of insight. Interested in joining this program? Click this link for further information!

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Change Management: Meaning, Benefits, Framework, and Steps to Do It
18 June 2024

In a company, changes can result in decreased work productivity and even losses. Therefore, proper change management is needed.

There are several types of frameworks that you can use to ensure changes in your business can be implemented and accepted well. In this article we will explain in full about change management.

What is Change Management?

Change management is a systematic step that companies must take in implementing organizational, operational changes, and the technology adaptation process. In other words, companies must ensure change continues while encouraging employees to take part in it.

According to TechTarget, change within a company, on any scale, can cause stress and discomfort. Decreased productivity and job satisfaction are only a small part of the negative impacts of messy change.

Before making changes within your company, you should consider the following:

  • Impact of changes on operations and employee conditions.
  • Prepare clear stages and implementation schedule.
  • Document all stages and change processes so that nothing is missed.

All of the above considerations will form the right change management plan. You can also choose a framework that suits the type of change and all employees.

Benefits of Change Management

If the company has a structured and systematic change management plan, the following are a number of benefits that will be felt:

For companies

  • Complete system and documentation.
  • Ensure the similarity of expected and occurring changes.
  • Automation systems can be adopted precisely and quickly.
  • Can identify what needs to be changed and eliminated.
  • Can determine infrastructure whose function can be changed.

For employees

  • Understand the reasons and solutions carried out by the company in the change process.
  • Understand the role and impact that can be provided during the change process.
  • Equalize the perspective and feelings of each employee towards change.
  • Understanding that his and the company's future is on the same path.
  • Can compare expectations and facts of changes that will occur.

Types of Change Management Frameworks

As mentioned above, there are several types of change management frameworks to ensure a smooth process. Summarizing Apty, here are four frameworks commonly used by companies in carrying out change management.

Kotter change management

This framework was popularized by Harvard professor John Kotter. The process he introduced is popular and has been used by many companies since 1996.

Kotter divides the change management process into eight important steps.

  1. Create urgency for change.
  2. Building collaboration within the organization to support change.
  3. Create a strategic and realistic vision.
  4. Can convey the vision well and clearly.
  5. Encourage various parties to take part in the process.
  6. Celebrate all small and short-term achievements.
  7. Maintain the duration and speed of the change process.
  8. Cultivate and form a corporate culture within the company.

When creating urgency for a change, you must be able to convey the reasons and the problem you are trying to solve. Make sure this information is conveyed transparently to employees.

Lewin's change management model

This change management model is quite simple, Lurt Lewin describes the following three phases.

Unfreeze

This phase is used to map out what needs to be changed and what kind of preparation is needed. In detail, pay attention to the following three things:

  • Decide what to change.
  • Analyze the company's current operations and what changes need to be made.
  • Communicate changes transparently.

Change

This phase is when all changes begin to be implemented. Make sure these two things are done:

  • Ensure all employees understand the positive impact of change.
  • Provide training and time for employees to adapt.

Refreeze

This final phase is to ensure the changes are implemented correctly. Three things to do are:

  • Convey again the goals and impacts that will occur from changes to the company's internal processes.
  • Ensure company stability during and after changes.
  • Celebrate success and success in making changes.

PDSA

This change management is a framework that prioritizes continuity. This means that even though changes have been implemented, the process will continue to be optimized and developed. The PDSA stages are:

  • Plan – Identify changes and develop a plan.
  • Do – Make changes from the smallest scale.
  • Study – Analyze the results of changes and identify successful patterns that need to be corrected.
  • Act – Make decisions and implement changes based on analysis and lessons learned.

This change management helps companies and employees to remain flexible and develop.

ADKAR model from Prosci

This framework prioritizes perceived outcomes in change management. Prosci outlined these five results or achievements:

  • Awareness – Company management explains the changes that will occur and their causes.
  • Desire – Leaders and managers ask for employee support through case studies and facts about company conditions. It is recommended to conduct 1-on-1s to understand employee opinions and concerns.
  • Knowledge – Changes are implemented thoroughly. Companies must hold training to support employees in adapting.
  • Ability – Employees will begin to apply changes in their daily work.
  • Reinforcement – ​​Give appreciation to employees for implementing and making the change a success.

Steps to Perform Change Management

If you look at the various frameworks above, the key steps for effective change management are:

Open-minded leader

Quoting Asis Online, feelings of frustration and uncertainty in change can be overcome by a company that can embrace all parties and be open. Internal stakeholders, clients, employees and consumers must receive a complete explanation and understand the new steps the company will take. The right leader will ensure all of those things happen.

Involvement of all related parties

Still related to the previous point, change requires help from all parties in the company. Every team, stakeholder and employee must work together to carry out and support the change process.

Open and clear communication

It can be concluded from the various frameworks above, transparent, intensive, effective and personal communication can help the change process run smoothly.

Change-related training

Employees must receive training and be given realistic time to adapt to changes. Managers can hold 1-on-1 sessions to check on employee conditions.

Clear success metrics

The final step is to determine realistic and clear targets for success. Frustration and uncertainty can result from metrics that are “too high” or impossible to achieve in a short time frame.

That is a summary of change management so that companies can avoid problems that could have a bad impact.

Through proper change management, the mission and vision of leaders and employees will be united. Therefore, change management is a process that must be prepared carefully.

Before making a decision, you should first study the change process and management.

Join the prasmul-eli short program and learn about various change processes and management!
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Customer Relationship: Meaning, Benefits, Types, How to Build, and the Difference from Customer Service
17 June 2024

The relationship between business and consumers must be a primary concern and continue to be maintained. Building strong customer relationships is one way.

Consumers always expect business commitment to provide the best products and services. Consumer loyalty is a result that will be directly proportional to business profits.

In this article, you will learn in depth about customer relationships, from the meaning, benefits, types, to how to build them.

What is Customer Relationship?

Customer relationship is a method used by companies to ensure customer satisfaction and loyalty. This method, citing HubSpot, requires companies to proactively provide the best service, solutions to consumer problems, and ensure their needs are met.

Companies with the best products or services are not limited to what they sell. Because today's consumers also want to know the image of the product and the level of company awareness after the product or service is purchased.

Therefore, strong customer relationships will ensure business success in the future.

Benefits of Customer Relationships

In addition from bringing business success, also know the benefits of customer relationships in your business in the short and long term.

  • Consumer loyalty to buy any product sold.
  • Know and understand consumer needs.
  • Becomes important capital in making business decisions.
  • Understand what problems they face and how the product can help them.
  • Improve the overall reputation and image of the company.
  • Make your brand or business at the top of consumers' minds.
  • Improve customer experience and satisfaction.
  • Creating opportunities for businesses to have more diverse products.

Types of Customer Relationships

Depending on the business, type of product, and type of consumer, there are three types of customer relationships. Summarizing HiverHQ, here is the complete explanation:

Proactive customer relations

Proactive customer relations is directly building customer relationships proactively. Companies must contact consumers before any complaints or problems occur. From the start, companies must:

  • know who the consumers are
  • what are the needs
  • what is the thought process before buying
  • what kind of product is expected
  • what image is expected
  • understand how to keep them satisfied

You can run this type with a variety of rewarded surveys. Make sure the survey is run consistently, for example every quarter (3 months).

Reactive customer relations

Different from the previous type, reactive customer relations is a way for businesses to respond to, understand and resolve problems experienced by consumers. Therefore, you must know all the problems and complaints that consumers convey in various forms and platforms.

Several strategies that businesses can implement to produce positive reactive customer relations include:

  • Validate consumer complaints and input.
  • Apologize and make sure the business is ready to resolve the complaint.
  • Understand the problem and offer the best solution.
  • Follow up even though the problem has been resolved and show concern.

Strategic customer relations

Strategic customer relations means that the company's culture and references are based on consumer needs and satisfaction. Every product made is always confirmed and tested by loyal consumers. Usually this type is carried out by companies that already have a special image in general.

How to Build Customer Relationships

Follow these steps to build good customer relationships:

Build a strong foundation in communication

Good relationships are based on clear and open communication. Convey all information as it is and use sentences that are easy to understand. Avoid jargon or difficult words.

Be realistic and don't lie

Don't give false and unrealistic hopes. Make sure the solution offered makes sense and can be done easily by consumers.

Receive and collect input from consumers

Always record and pay attention to every input, suggestion, and complaint submitted. Use this as a reference for development and solving various problems.

Track the problem resolution process

As long as the problem is not resolved, consumers should not have to report the same thing again. Also track the problem resolution process with the relevant team. Continue to convey how far your team is working.

Anticipate consumer needs

Even though the problem has been resolved, consumers will continue to use your product or service. By understanding consumer habits and profiles, create a list of needs that may arise in the future.

Make the relationship more personal

Make consumers feel like you are a friend who helps them solve problems. You can also call consumers by name in each communication process.

Monitor consumer changes

Monitor consumer changes and check for possible problems that may occur. These problems can be related to how the product works, the taste of the product, the impact of the product on consumers, and even the image of the product.

Competitor analysis

Find out how they build relationships with consumers. Especially competitors in the same industry. You can build stronger and better relationships to attract new consumers.

Understand market changes

Understand market changes and consumer needs. Changes that occur in the economy, ways of thinking, and needs will influence the company's customer relationship strategy.

Reach new consumers

Reach potential consumers who can become loyal consumers in the future. You can expand the range of services or products marketed or add product lines.

Difference between Customer Relationship and Customer Service

In short, here are the basic differences between customer relationship and customer service:

  • Customer service focuses on the process of solving consumer problems directly.
  • Meanwhile, customer relationship focuses on the process of building and maintaining long-term relationships with consumers.

Both play an important role in business and consumer relationships.

Customer relationship is a concrete step to ensure consumers continue to use your product in the long term.

Building customer relationships requires time and the right strategy.

Want to learn more about customer relationships and how to build them?
Join our class and learn how to build good customer relationships, click here now!