- Ways through which Companies use different segmentation strategies
Companies use market segmentation through targeting and positioning. The essential strategic plan informs the segmentation strategy that would effectively allow the company to promote its products, brands, and services. Verizon Telecommunication uses geographic, behavioral, psychographic, and demographic segmentation depending on the different market objectives. The focus of different segmentation strategies in different markets is to appeal to elite and general target consumers. Market segmentation aims to divide consumers into distinct groups based on the desires, needs, and preferences (Green & Keegan 2020). Verizon used these categories to adjust its product lines and tailor its marketing techniques to appeal to different consumer segments by addressing their specific needs. Netflix used target marketing by employing demographics and geographic segmentation. The company recognized that location, gender, age, social affiliation, needs, and customers’ attitudes are key in helping the company promote its brands, services, and products effectively. All these companies identify potential consumers by criteria of their income, age, gender and social status, location, or consumer behavior. Multiple segmentations help to position the brands to the needs of the company. Since the organizations cannot target the whole market, they employ segmentation that targets specific customers. Segmentation, therefore, varies depending on whether the target market is business or consumer.
- Market Entry Research
Amazon is a U.S online retailer shop that would like to enter the African market. The success of Amazon will depend on the effectiveness of its market research. Therefore, Amazon could focus on market and industry assessment fata to identify the product or service, the size of the market, government policy, and consumer demands. In addition, Amazon would assess the barrier to entry and different disruptions occasioned by social change and consumer behavior. Moreover, the company would look at the major competitors, market training, and value proposition. All these would evaluate the positioning strategies and elements of joint ventures. It will be imperative to research the target customers, distribution channels, pricing, and external factors affecting the industry (Green & Keegan 2020). All these elements of market research would be useful in helping Amazon to position itself and make the right decision on the correct market entry strategy for the African market.
- Market Positioning in Foreign Market vs. Domestic Market
Amazon would position itself through product attributes. The company would associate its brand with a certain value of online retail and make customers feel that its brand is better. Therefore, the company would determine its uniqueness, identify its current market position, and developing a positioning strategy. Amazon would bridge the difference between the foreign and domestic markets by building on the growth strategy. The company would focus on creating new markets in the international market. Such factors would be different in the domestic market, where it would be increasing its market share. International growth strategies will allow Amazon to penetrate the new African market (Green & Keegan 2020). Moreover, the company will outsource human resource development strategies for cultural diversity, unlike in the domestic market. The company structure for the company would reflect the diverse ethnic and cultural groups in the international market, unlike the domestic market, which focuses on the company’s citizens.
- Product adaptation strategy and branding for the bottom of the pyramid markets
World Water company focused bottom of the pyramid markets to provide water and energy solutions in seventeen countries, including Pakistan, Somalia, and the Philippines. The company created water pump solutions that rely on solar energy. Therefore, the company adapted to the local context by understanding how consumer behavior Works, assessing existing business practices, and taking advantage of existing capabilities (Filardi, Barros & Fischmann 2018). The product adaptation strategy to World Waters enabled the bottom of the pyramid markets to access employment opportunities and work as human resources. As a result, the company created irrigation pumps for the farmers in developing countries, focusing on specific projects of product adaptation. The product used solar energy as its source of power, making it cheaper. The company adopted decentralized distribution that involved Non-Governmental Organizations. The purpose of this was to facilitate the creation of small-scale businesses that served a wide range of the market. The company also published its products through radio and the internet to demonstrate the values of its products.
- Luxury Market
Victoria’s Secret has focused on the international luxury market while targeting the U.S mass market. The success of the company has been on effective branding and sensory marketing. Victoria Secretes has developed effective marketing communication that conveys the message about the status, quality, taste, and lineage of female wear. Victoria’s Secretes created brand value through the luxury brand marketing strategy and achieved pricing power for the international and U.S mass markets. All this success is through the company’s ability to leverage multiple Brand elements for its prestigious clients. Victoria’s Secret tends to focus its brand communication on luxury. The company packages its products to inspire happiness. The core of Victoria’s Secret is customer segments (Font Cuadras 2020). The company satisfies the customers’ needs by dividing them into different groups and taking into account their specific behavior and interest. Therefore, Victoria’s Secretes strategically addresses the local mass market and a segmented international market. The company manages to make the Price for its products high and thus achieve high returns.
References
Green, M. C., & Keegan, W. J. (2020). Global marketing. Pearson Education Limited.
Font Cuadras, P. (2020). Sustaining a Competitive Advantage in The Fashion Luxury Market: A case-study of Emerging Fashion Brands.
Filardi, F., Barros, F. D., & Fischmann, A. A. (2018). Business strategies for the bottom of the pyramid: multiple case studies of large companies in the pacified communities of Rio de Janeiro. RAUSP Management Journal, 53(1), 63-73