4.

0 SITUATION ANALYSIS
4.1 Product-Market Segmentation and Targeting
Effective target marketing requires that marketers; to identify and profile distinct group of buyers
who differ in their needs and preferences (market segmentation), select one or more market
segments to enter (market targeting), and for each target market segment, establish and
communicate the distinctive benefits of the firm’s market offering (market positioning).

In developing an effective marketing strategy for GYM, there are several elements need to be
focused which are market segmentation and targeting. GYM cannot develop network with
customers around the world without boundaries. But GYM can divide into two groups which are
consumers or markets with distinct need and wants. To compete more effectively, many
companies are not apply this effective target market which requires identify and profile distinct
group of buyers who differ in their needs and preferences, select one or more market segment to
enter and for each target market, establish and communicate the distinctive benefits of the
company’s offering.

4.1.1 Levels of Market Segmentation-Segment Marketing

There are many types of level in market segmentation like segment marketing, niche marketing,
local marketing, and individual marketing. But, we are choosing one level to be applied in our
marketing plan which is segment marketing based on basic market preference patterns.

A market segment is consists of a group of customers who share a similar set of needs and wants.
The marketer does not create the market abut they identify the segment and decide which one to
target. Segment marketing offers key benefits over mass marketing. GYM can presumably
better design, price, communicate and deliver the product or service to satisfy the target market.
GYM also can fine-tune the marketing program and activities to better reflect competitors’
marketing.
 4.1.1.1 Market Preference Patterns
There are three different patterns can emerge in identifying preference segments which are
homogeneous preferences, diffused preferences and clustered preferences. So, after analyze
information given, our consumers was categorized under homogenous preference which means,
all the consumers have roughly the same preferences which are to get healthy lifestyle and all
about health.

4.2 Bases for Segmenting Consumer Markets

In segmenting consumer markets, there are two group of variable that can be used in developing
our marketing plan which is descriptive characteristic and behavior consideration.

4.2.1 Descriptive characteristic

The examples of descriptive characteristics are geographic, demographic, and psycho graphic.
We will examine whether these customer segments exhibits different need or product responses.
But according to our GYM, we will segment based on these two elements which are geographic,
and demographic. Groups of demographic segmentations are age, population, family size,
income, occupation and so on.

Population and demographic consists of six factors which are population growth, population age
mix, ethnic markets, educational groups, household patterns and geographical shifts. Firstly, in
population age mix we must consider the age group of our new outlet gymnasium target location.
A population can be subdivided into six age groups: preschool, school-age children, teens, young
adults aged 25-40, middle-aged adults aged 40-65, and older adults aged 65 and above. We are
targeting high income customers from teens until middle aged 40-65 for our potential customers.
According to our research at Meru Raya it is a suitable demographic due to all range ages. Even
though we are targeting for high income, but customers that capable to pay for our fees is allow
to enter our gym. It is because; our gymnasium will offer variety of gym equipment that suitable
to all potential customers due to level entrance fees. The equipment offered will not giving
limitless for our consumer. In term of geographical area, Meru Raya is among the best area
suitable in segmenting our consumer market due to the natural environment.
 4.2.2 Behavior segmentation
Psychographic segmentation is sometimes also referred to as behavioral segmentation.
This type of segmentation divides the market into groups according to customers’ lifestyles.  
It considers a number of potential influences on buying behavior, including the benefits sought,
loyalty status, and lifestyle of consumers.  If these are known, then products and marketing
campaigns can be customized so that they appeal more specifically to customer motivations.

4.2.2.1 Benefits
For example, consumer of our GYM is classified according to the benefits they seek like want to
live in a healthy life, avoiding health problem, and getting tough body or active lifestyles. The
market strategy will be differenced based on benefits they acquire. It will responsibility for
GYM to get the benefit sought that potential consumer needs.

4.2.2.2 Loyalty Status

Consumers can be divided into four groups according to brand loyalty status:
1. Hard core loyal-consumer who use only one firm’s gym service all the time and the
company can identify its product’s strength.
2. Split loyal-consumers who are loyal to two or three gym services and gym can pinpoint
which services are most competitive its own.
3. Shifting loyal-consumers who shift loyal from one gym services to another and we can
learn about our marketing weaknesses and attempt to correct it.
4. Switchers-consumer who show no loyalty to any gym services and we can recognize that
this type of consumer hard to cater.

4.2.2.3 Lifestyle 
Different people have different lifestyle patterns and our behavior may change as we pass
through different stages of life.  For example, a family with young children is likely to have a
different healthy lifestyle to a much older couple whose children have left home, and there are,
therefore, likely to be significant differences in consumption patterns between the two groups.  
 4.3 Marketing Targeting
Once a firm has identified its market segment opportunities, it must decide how many and which
ones to target. This has led some researchers to advocate a need-based market segmentation
approach. Target Marketing refers to a concept in marketing which helps the marketers to divide
the market into small units comprising of like minded people. Such segmentation helps the
marketers to design specific strategies and techniques to promote a product amongst its target
market. A target market refers to a group of individuals who are inclined towards similar
products and respond to similar marketing techniques and promotional schemes.

Our GYM mainly targets individuals who want to cut down on their calorie intake in order to get
a healthy lifestyle. The target market in such a case would be individuals who are obese. So, our
GYM will design many program on how to assist our customers.

5.0 MARKETING STRATEGY 4PS

5.4 Promotion
Marketing communication mix consist six major modes of communication but only three modes
will be used in promoting our GYM which are advertising, sales promotion and direct marketing.
According to our service, those three modes are the best method we can use in creating our
marketing promotion strategy and will give positive impact for our GYM based on related
functions for every method. Actually, this is a platform for our GYM to connect with people.

5.4.1 Advertising
Advertising is a paid form of communication for marketing and used to encourage or persuade
an audience like viewers, readers or listener and sometimes a specific group to continue or take
some new action. We are attempting to creating the advertising program via various traditional
media; including mass media such as newspaper, magazines, television commercial, or direct
mail; such as blogs, websites or text messages. We believe that it will give big impact in
creating awareness for our potential consumers. If the awareness was succeeding to be created,
the number of consumer will increase so do our GYM’s profit. So, the choosing of advertising
modes is very important.
 5.4.2 Sales promotion
Sales promotions can be directed at the customer, sales staff, or distribution channel members
(such as retailers). Sales promotions targeted at the consumer are called consumer sales
promotions. Sales promotion includes several communications activities that attempt to provide
added value or incentives to consumers, wholesalers, retailers, or other organizational customers
to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or
purchase. In developing marketing plan, our GYM choose devices used in sales promotion
include coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and
sweepstakes. For example, for the first three months after registered with GYM, consumers will
get free personal coach with regular prices which supposedly no personal free coach. The entire
devices will assist our firm to give short term incentives to our consumer or potential consumer.
When they think, they will get many benefits from our GYM they will interested to become loyal
user of our GYM services.

5.4.3 Direct marketing

Direct marketing is a channel-agnostic form of advertising that allows businesses and nonprofits
organizations to communicate straight to the customer, with advertising techniques that can
include cell phone text messaging, email, interactive consumer websites, online display
advertising, fliers, catalog distribution, promotional letters, and outdoor advertising. For
example, we are attempting to create a website for our GYM in order to let viewers, potential
consumer and consumers acknowledge about our GYM service. It may look simple but the
impact we can get from the website is large.