The required information for this module is attached in the ‘additional materials’ file. Please thoroughly read all preparatory instructions prior to starting/completing the assignment: Home, Background, SLP, Discussion Post, SLP Outline, and the four Trident Sources documents.
STP, Product Management & Situation Analysis
Developing a strategic marketing plan is critical for the sustainable competitiveness of a product or service. However, creating this plan requires adequate information about various components that affect consumers’ purchasing behavior. Therefore, this research explores Maslow’s Theory of needs, the consumer behavior model, target market and competition, and their influence on the ultimate marketing efforts.
Maslow Theory of Needs
Maslow’s theory of needs is a motivational theory that depicts various human needs and their paramountcy level. According to the literature, the model facilitates an exploration of the factors that trigger individuals to do their best in life and understand the most encouraging elements in their lives (Ghatak & Singh, 2019). This theory comprises five tiers of human needs: psychological, safety, love and belonging, esteem, and self-actualization.
The pyramidical structure follows a standard sequence, starting from the most basic need-physiological factors- to self-actualization. Ghata and Singh (2019) posit that a higher need in the hierarchy is significant than lower levels of obligation, and skipping a degree is impossible. This information implies that before pursuing a higher need in the hierarchy, one must first fulfill the lower-level elements. For example, an individual cannot pursue self-actualization before fulfilling physiological and safety requirements such as food, security, and stability. Moreover, the fulfillment of a lower-level tier leads to the increased significance of the upper-tier elements. In essence, the Maslow needs theory is a model of classifying human needs and motivations based on their vitalness.
Besides being used to understand human needs, the Maslow needs theory is highly used by marketers to base their marketing efforts. Notably, the theory is used to identify human needs and formulate marketing efforts that appeal to the identified needs and trigger prospective customers’ purchases. For example, for a firm to successfully sell its products to a population, it must appeal to the latter’s needs in a relevant manner and support its products’ ability to satisfy the needs. Moreover, for marketing efforts to be fruitful, brands must ensure that they appeal to the right population. Arguably, a firm whose products are tailored for self-actualization may not be appealing to individuals at the pyramid’s physiological tier. Fundamentally, Maslow’s theory of needs is used in marketing to appeal to customers’ needs and persuade them to purchase products.
Consumer Behavior Model
The other model that is vital in marketing is the consumer behavior model. Scholars aver that there are five stages in this model: problem recognition, information search, evaluation of alternatives, purchasing, and post-purchasing (Demir, 2010). The five steps describe consumer behavior from when the individual considers a set of product options from an extensive alternative to the ultimate consumption decision. Understanding consumer behavior in each of the five stages enables marketers to develop products that meet the former’s needs, attract more visitors and build brand loyalty (Demir, 2010). Moreover, this understanding helps marketers shape their marketing efforts to suit the consumers’ psychographics. For example, if consumers rely on the internet to conduct product searches, it affects marketers’ marketing channels to reach prospective consumers. Similarly, if external motivations such as other peoples’ experiences influence the consumer purchasing decision, marketers must shape their efforts to promote positive motivation among current clients. Therefore, the consumer behavior model helps marketers understand consumers’ psychographics, which shapes the medium and manner in which they market their products.
Product
The primary service of focus for this research is health/wellness and nutrition services. The business offers virtual, live and recorded, home workouts and healthy nutrition meal plans for beginners, intermediate and experienced individuals. In essence, the service aims to improve people’s lifestyles through physical exercises and healthy nutrition options.
Target Market
The three target profiles for the health/wellness and nutrition services are achievers, believers, and experiencers. As noted from the survey, achievers pursue healthier lifestyles and are likely to involve their friends and relatives on the fitness journey. Believers also value a healthy lifestyle and are more likely to be loyal. Therefore, they would make an ideal frequent client for the workout sessions. The third consumer profile is experiencers who are highly involved in physical exercises; thus, making them viable for the health/wellness services.
The target market that would suit the mentioned demographic profile is likely women between the age of 25-35 years. According to statistics by the U.S. Census Bureau, there are approximately 23.2 and 22.3 million women aged between 25-29 and 30-34, respectively (“Age and sex,” n.d.). This statistic implies that the target population constitutes about 45.6 million individuals, a considerable size for the virtual health/wellness and nutrition session. Moreover, most women within this age are employed; thus, they have a high purchasing power for the proposed services. Therefore, the increased purchasing power and large population make women between 25-35 years a viable market for the service.
Competition
The market for health/wellness and nutrition services is large, and so is the competition. According to Statista reports, the wellness industry’s global market size, notably healthy eating, nutrition, and weight loss, was worth 702.1billion in 2017 (Gough, 2020). Statistics also reveal that the industry is likely to grow significantly by 2026 (“Dive,” 2020). Like other firms in the wellness industry, the proposed service targets nutrition and physical exercises; therefore, it may benefit considerably from the optimistic market forecasts. However, the business must also beware of the existing and growing fierce competition from other firms that offer virtual health/wellness and nutrition services. These companies include Remote Team Wellness, GoodRx, and WorkStride. To survive in this competitive industry and secure a considerable market base, the business must use appropriate marketing strategies to reach out to the target consumers.
Conclusion
As information from this research reveals, Maslow’s Needs theory and consumer behavior model are vital guidelines against which to frame marketing efforts for the proposed business idea. Moreover, selecting a target market, identifying the industry trends, market forecasts, and competitors is critical in choosing an appropriate marketing strategy.
References
“Age and sex” (n.d.). United States Census Bureau. Retrieved from https://data.census.gov/cedsci/table?q=number%20women%20between%2025%20to%2035%20years%20&tid=ACSST1Y2019.S0101&hidePreview=false
Demir, S.S. (2010). Relationship between stages of consumer behavior model: A study of Turkish tourists. European Journal of Tourism Research, 3(2), 132-134. Retrieved from relationship between Stages of Consumer Behaviour Model: A Study on Turkish…: University Library (ebscohost.com)
Dive, R. (2020, November 10). Global Health and Wellness Industry Expected to Observe Significant Growth and Hit $6,543.4 Million by 2026 – Exclusive Report GlobeNewswire News Room. Retrieved from https://www.globenewswire.com/news-release/2020/11/10/2123853/0/en/Global-Health-and-Wellness-Industry-Expected-to-Observe-Significant-Growth-and-Hit-6-543-4-Million-by-2026-Exclusive-Report-110-Pages-by-Research-Dive.html
Ghatak, S., & Singh, S. (2019). Examining Maslow’s hierarchy need theory in the social media adoption. FIIB Business Review, 8(4), 292-302. doi:10.1177/2319714519882830
Gough, C. (2015). Wellness industry: Global market size 2015-2017. Statista. Retrieved from https://www.statista.com/statistics/270720/market-size-of-the-wellness-industry-by-segment/
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