Market Principle Industrial and Corporate Change

Question: Discuss about the Market Principle for Industrial and Corporate Change. Answer: As the selected product is a high-end technological gadget, the geographic market can be identified as the urban markets. Moreover, as mentioned by Chernenko, S. and Sunderam (2012) the economic status of the countries can also be identified as the components of market segmentation. Here, in the selected case, the target market of a laptop can be distinguished as the developed and developing countries. Demographic segmentation: The demographic segmentation depends on a number of issues. These can be discussed as follows: Age: As mentioned by Brahmbhatt and Acharya (2016) for the technological products, the organizations need to concentrate their marketing strategy to obtain the loyalty of the youngsters. Here, as laptop I a popular product among all age group, the target age group will be 13 to 68. Gender: No gender differentiation is needed for this particular product. Income: As mentioned by Sharma and Lambert (2013) in the last few decades the disposable income of the global customers have been increased. Hence, both the high and middle-income group can be targeted in this regard. Figure 1: The market segmentation Source: Developed by the author Education and social status: As opined by Sharma and Lambert (2013) it is important for the marketers to identify the educational level and social status of the potential customers. It gives them a competitive advantage while developing the appropriate marketing strategy. Here, in the selected case, the educational and social position of the customers can be identified as high level. Psychographic segmentation: According to Sharma and Lambert (2013) one of the major components of market segmentation is Psychographic segmentation. Here, in the case of segmenting the market for laptops, the target customers are the ones who love to use the technological gadgets. As mentioned by Pandiya et al. (2016) the tech savvy, extrovert as well as the introvert peoples can be identified as the target customers for technological products. Benefit and Usage-rate Segmentation: Here, in the discussed context, the target customers will be the students, the professional executives and freelancers. Based on the benefit segmentation, it can be identified that the product offering i.e. laptops will target the professionals who use laptops for their official tasks, the freelancers (as computers are their major equipment) and the students for their educational requirements. The targeting strategies: As mentioned by Wilson and Gilligan (2012) the revelation of lack of strong differentiation among the potential customer segments that the company is going to serve, Undifferentiated marketing is needed to be followed by the organizations. Here, in the selected case, an undifferentiated targeting strategy will be used. A single marketing mix is needed to be made by the company to target the potential customers. The traditional promotional strategies can be used here. However, as discussed previously, a certain range of differentiation can be noticed within the customer groups. Hence, differentiated targeting can also be opted for achieveving a better level of marketing success. For targeting the customers, the company can used the following strategies: Discounts and product offerings: As mentioned by Brahmbhatt and Acharya (2016) while targeting the youngsters, providing occasional discounts and free gifts can be helpful in attracting them. On the other hand, for the specified customers, like the freelancers and professionals additional and customized utility packages can be served. The availability: As mentioned by Wilson and Gilligan (2012) depending on the psychograph of the target market the distribution strategy should be shaped. As the target market is the professionals and the students, online as well as physical availability is a great idea for targeting the customers. The price: As mentioned by Pandiya et al. (2016) this particular market is too competitive. Hence, it will be best to opt for a competitive pricing policy. The huge competition will not let the premium pricing to be successful. Thus, the above-discussed targeting strategies will be useful for attracting the target customers. Positioning bases: Identifying the market position of the competitors as well as the brand itself is important for the companies to identifying the consumer base and the potential profit count. As mentioned by Cross et al. (2015) identifying the position of the brand is a process that marketers use to communicate their brands' characteristics to the target customers, depending on the needs, competitiveness, and existing communication channels. Hence, it is important for the brands to identify the position of the brand as well as the competitors. Here, in the following diagram an idea has been provided about the positioning of the popular laptop brands of the modern market. Figure 2: Brand positioning of modern laptop manufacturing companies Source: (Pandiya et al. 2016) Hence, it can be noted that Apple or the MAC laptops can be identified a high performing and high priced product in market. In such a context, as mentioned by Brahmbhatt and Acharya (2016) to grab the good range of customers the price need to be lower. It will be helpful in collecting the customer base, which Apple is losing for its high price level. On the other hand, on the lower price stature, a number of competitors are prevailing. Hence, to obtain a good level if competitive advantage, the service quality need to be exceeded the level of the competitors. However, to meet this challenge, the price needs to be uplifted but not much. As mentioned by Bruggeman et al. (2012) it will be helpful in obtaining customer satisfaction and good brand image. Conclusion: Hence, from this discussion, it can be noted that Laptops cannot be identified as a general or basic requirement of an individual. As discussed previously, it holds a high place in the Maslows Hierarchy Model. It has a very important implication on the marketing strategy of the product. On the other hand, this particular product involves the target customers who are the professionals with a good professional background, technological competency and high social status. All these variables have influenced the marketing strategy of the product. As opined by Cuadros and Domnguez (2014) by identifying the appropriate customers for the product offerings the organizations can ensure better profit count, low marketing cost and better customer satisfaction. In addition, an appropriate brand positioning is also needed for lying down the appropriate targeting strategy. Hence, it can be identified that a number of issues are interconnected and hold an important implication in the success of a co mpany. References: Brahmbhatt, A.C. and Acharya, S., 2016. Mapping of Consumers Perception for Laptop. PARIPEX-Indian Journal of Research, 4(9). (https://worldwidejournals.in/ojs/index.php/pijr/article/view/6103) Bruggeman, J., Grunow, D., Leenders, M.A., Vermeulen, I. and Kuilman, J.G., 2012. Market positioning: the shifting effects of niche overlap. Industrial and Corporate Change, 21(6), pp.1451-1477. ( https://icc.oxfordjournals.org/content/21/6/1451.short) Chernenko, S. and Sunderam, A., 2012. The real consequences of market segmentation.Review of Financial Studies,25(7), pp.2041-2069. ( https://rfs.oxfordjournals.org/content/25/7/2041.short) Cross, J.C., Belich, T.J. and Rudelius, W., 2015. How marketing managers use market segmentation: an exploratory study. In Proceedings of the 1990 Academy of Marketing Science (AMS) Annual Conference (pp. 531-536). Springer International Publishing. (https://link.springer.com/chapter/10.1007/978-3-319-13254-9_107#page-1) Cuadros, A.J. and Domnguez, V.E., 2014. Customer segmentation model based on value generation for marketing strategies formulation. Estudios Gerenciales, 30(130), pp.25-30. (https://www.sciencedirect.com/science/article/pii/S012359231400045X) Pandiya, D.K., Kumar, B. and Chakraborty, D., 2016. Factors Influencing Laptop Buying Behavior a Study on Students Pursuing Ug/Pg in Computer Science Department of Assam University. Indian Journal of Applied Research, 5(12). (https://worldwidejournals.in/ojs/index.php/ijar/article/view/2961) Sharma, A. and Lambert, D.M., 2013. Segmentation of markets based on customer service. International Journal of Physical Distribution Logistics Management. (https://www.emeraldinsight.com/doi/abs/10.1108/09600039410757649) Wilson, R.M. and Gilligan, C., 2012. Strategic marketing management. Routledge. 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