The Growth of Technology: Marketing Segmentation - Term Paper Example

Marketing Segmentation With the current growth of technology, marketing has taken a different perspective in respect to technology. Many organizations have failed to realize effective marketing due to lack of technology and proper research. One of the strategies through which effective marketing has been realized is through segmentation. Market segmentation is the dividing of a market into customer brackets which binding factors are their identical needs. Each bracket in the division would be the market’s base target attainable through a unique marketing outfit. Segments are the portions attained after considering the various variables that include age, gender, and societal class in terms of income generation, attitudes, and opinions. Other factors include their interests, physique, and their knowledge status among many others. Segmentation is part of the many tools and theories in the marketing world (Wedel and Kamakura 69). For instance, the manufacturing of the products is within the target needs of a specific part of a population. This paper will seek to expound on the various steps involved in analyzing of the same. The other objectives of this paper shall include in-depth market analysis of a product of choice in line with segmentation, the various segmentation variables, and how they influence the marketing and selling of the identified product. In addition, it will give a detailed analysis of the existing market segments carefully depicting the underutilized variables in improving the marketing and distribution of the chosen product. Predominantly, there are two classes of variables, which influence the use of segmentation in a target market. The first factor is needs, which essentially is what an individual cannot do without. Mostly, wants take the place of needs as is in many instances individuals confuse their urgency and importance. A want is something that one can simply delay its use as it is not pressing or not of urgency. Essentially, needs are the most basic things and are unavoidable. In market segmentation, the needs of the consumer are the referral point in the marketing strategy. Obtaining of these needs is through the conducting an intensive research in the identified market (McDonald and Dunbar 40). The other variable is profilers, which are the detailed description of consumers’ characteristics by determining their age, area of residence, citizenship, income level and their gender. Further, under area of residence, ascertaining if the segmented group lives in urban or rural setting is critical as the way of life for those living in the two tend to be different (Weinstein 54). Amazingly, examples of profilers and the characteristics of the needs revolve around the same factors mentioned above. Further, a field’s societal status can also be the base of the argument that distinguishes what a segmented group would want and what it would not. For instance, race and religion play a role in the segmentation period as marketing of a certain product to a certain race would be unsuccessful as their religion may not allow it (Yankelovich and Meer 5). Therefore, market research is an important tool that would ensure the successful penetration of a product into a targeted market. The lifestyle of those whom a marketing company intends to roll out the product to should also serve as their reference point. Many product releases fail to pick in a market mainly because the product does not get to the right individuals. Poor study of the group leads to such cases, thus inhibiting exhaustion of the market area. Another factor is the behavior of the segmented group in terms of the product usage. In a market, there are high, middle and low level consumers of a specific product. In essence, profiling them according to their different usage levels helps the marketer to determine the amount of products to release into the market (Wedel and Kamakura 73). One among the extensively growing industries is the automobile one. With the motor industry as the basis, it is not rare to witness a market segment dominated by two to four different companies as those below the chain struggle to get to the top. A practical example of such a scenario would be that in the motor world, the forces that people reckon with are either Mercedes or BMW. All other brands fall short of the top spot as the two have led the pack for the longest time ever. This phenomenon can be attributed to a number of arguable reasons. For one, the two giants control the market in that they set the market price and dictate the quality of the car output. This is highly because their products are flawless when it comes to performance and life span. Additionally, their popularity is due to the unchallengeable reputation that their brand names have acquired over the years, thus making their products easy to penetrate in to the market. Lastly, the amount of regard that they carry their clients with could also be a factor that has enabled them to be the pace setters in their field of specialty. To them, customer satisfaction is their ultimate achievement (Weinstein 56). Let us consider a sports car as a product of reference to give sufficient insights into how a company can manage to dominate a market segment. They have long been the cars that only the rich can be associated with. They are mostly luxury vehicles where many consider them additional “toys” to an individual’s garage car collection. Therefore, the focus while considering the conquering of this particular segment should be on the pocket friendliness of the car to an individual in terms of maintenance, acquisition, and fuel cost. Target achievement can be on three main approaches. For one, the marketing company can choose to do its marketing in a general target market without factoring the profilers. Alternatively, they can set apart the segment group and then roll out their intended marketing strategy by keenly profiling the segment market (McDonald and Dunbar 40). Their last option would be marketing to the population and factoring the profilers as they go about it. The most favorable choice would be to segment the middle class and the upper class as they are the most suitable client base. Building on the image of the product is key as not many take interest in such. According to market research, demographically speaking, men below the age of forty would be the most probable people to buy sports cars as their responsibilities are not major. Women would fall short of buying this type of a car as to them it is about convenience and efficiency unlike to men where style, beauty and elegance come into play. When race is taken into account, an individual of Asian descent would mainly prefer a model from the Asian continent, which is rare. On the other hand, a European would immediately consider buying a brand that has all the features that he requires without considering the car brand. Financial stability is an aspect that should be of focus (Yankelovich and Meer 8). A middle-aged man who has a high income might be a potential buyer as he is stable financially, therefore his pocket can easily accommodate a financial stretch. It would be unproductive to market to this person as he would not even stop to listen, as his needs are more of a priority than buying a sports car. Ironically, teenagers from wealthy families might also show interest in acquiring these cars as they are not the ones who would mind the cost (Saxena 193). Behaviorally, males may also show much interest in buying a used car if it fits in the sports car category. In addition, they may also be patient enough and wait for the aftersale of a sports car as the price reduces remarkably. The company in many instances does so as a way of clearing a sale that proved unsuccessful before bringing in the new product into the market. The status of the potential car user also influences the ability to buy a sports car as the different users tend to have a different mindset on the car. An ex-user is more likely to buy it than a first time user mainly because he knows how it feels to drive it more than a first time user does. In line with the basic principles of market segmentation, the success of, for example, the Fiat car model in being the pack leader in its class will highly depend on its ability to apply these variables in its operations (Saxena 192). Failure to adherence will result in it taking a back seat to other brands, for instance, Ferrari. In the world of sports cars, the four main dominant factions are outstanding as compared to the rest. A tabulation of this would be effective in showing the car features, price range, the marketing and distribution channels used by their marketers and the latest sports car brands. Sports car brands Ideal features Price range Marketing strategy Distribution channels Ferrari Great speed, stylish interiors 200,000 $ to 400,000 $ Brand capitalization and product worthiness Mpstly exported Lamborghini Customization to user needs 100,0000 $ to 400,000 $ On line marketing On line sales Porsche Environment friendly 50,000 $ to 250,000 $ Venturing in to unfamiliar territory Opening of more retail stores across new territory Lotus Feather weight 50,000 $ to 100, 100,000 $ Employing consultancy to cut cost Through reviewed sales agents Admirably, Europe hosts a great number of these leading manufactures, but their target markets are beyond their borders. All these marketing strategies have seen their implementation due to the ability they tend to showcase in terms of market expansion. An outstanding feature is that the marketing tools implemented are highly dependent on the customers’ reception of the sports car. In all of them, a unique feature is their pillar. Despite the various studies on market segmentation, a number of them remain underdeveloped. However, marketing mixes are excellent tools of meeting the experienced deficit. For instance, a marketing mix is the introduction of ideas that would suit the specified segment in order to reach its expectations. In this regard, a marketer may establish the avenues that he may use to reach out to its target (Thomas 4). A good example would be the use of the media which their market segment commonly uses. As an example, the application of a popular magazine known to them may have a great impact on developing their brand knowledge as they are able to pass information with ease. With the upscaling of technology, the marketers may also use the social media avenues to reach a wider target market (McDonald and Dunbar 54). These may include avenues such as Tweeter, Facebook, and Hi5 among many others. Exceptionally, the social space has offered a platform to market products with ease and impact felt almost immediately. This is highly used by sports car developers to make value addition to their products in accordance with what the market states. Therefore, using the media, especially the social media, is of great significance in the current times as the market segment and the marketer are able to interact easily. In conclusion, market segmentation is an ideology that has proved successful in recent times. The sports car industry can attribute its growth and acceptance in the market to this tool of marketing. Many know that selling a car that is not for convenience purposes is not easy but they have been proven wrong as the manufactures of the same continue to unleash brand after brand. This is to show that they are doing something right, which is the engagement of relevant applications into their operations. Ideally, an identified market segment needs a unique approach when it comes to the introduction of effective marketing mixes. According to the above analysis, all the mentioned profilers go hand in hand with each other to ensure proper segmentation of a target group. Emphasis should also be on the positive and as this would not be substantial in the companies’ intended growth and expansion (Saxena 194). Finally, marketing involves other aspects that include research and collective involvement of a marketing firm to ensure that its product launch maintains its relevance to the market. Works Cited McDonald, Malcolm, Ian Dunbar. Market Segmentation: How to Do It, How to Profit from It. Oxford: Butterworth-Heinemann, 2004. Print. Saxena. Marketing Management 4E. New York: Tata McGraw-Hill Education, 2009. Print. Thomas, Jerry W. Market Segmentation. 2007. Web. 21 Sep. 2012. Wedel, Michel, and Wager A. Kamakura. Market Segmentation: Conceptual and Methodological Foundations. London: Springer, 2000. Print. Weinstein, Art. Handbook of Market Segmentation: Strategic Targeting for Business and Technology Firms. 3rd ed. London: Routledge, 2004. Print. Yankelovich, Daniel, and David Meer. “Rediscovering Market Segmentation.” Harvard Business Review. Web. 21 Sep. 2012. Read More