Market Segmentation and Its Importance
Customer experience plays a vital role in a company’s operation. It is a significant benchmark of evaluating whether this company has achieved its goal or not. According to different customers’ feedback, companies can check if their products or services have met the market average standard and hence make some changes or improvements. Nowadays the market is so competitive, how to attract customers is the most crucial for making profits. There are different methods which are usually used to prevail against other competitors.
Marketing mix is an essential tool of running a successful company, which is defined as a process of placing correct products in right positions combined with good prices and outstanding promotion. The success of a marketing plan depends on selection of marketing mix strategy. Gordon (2012) described that organizations should have proper attention on their marketing mix strategies to maintain their relationship with customers. The basic 4Ps are usually adopted. Along with the extended market mix which contains people, processes and physical evidence, the organizations can have a better understanding of their advantages and also disadvantages and that make some improvements. For example, a restaurant’s rating is normally integrated by its environment, taste and staff service. Therefore, marketing mix is an effective marketing model for organizations to meet their goals and objectives in an effective manner.
Market is always changing by time as well as people’s needs and expectations. In this dynamic world, keeping eyes on customer segmentation is essential. There are too many variables so that companies should investigate the population based on age, sex, location and so on. McDonald is an example of a failure of customer analysis. McDonald could not survive in India because Indians are against beef. There are some external factors that can change market environment, such as political, economic, social and technological issues.
It has been analyzed by De Clippel, Eliaz & Rozen (2014) marketing strategy is significant tool to gain competitive advantages in the global market. Furthermore, the marketing challenger strategies are considered marketing strategies used by the companies, either occupying the third or carrying the position in the international market, to beat the leader or the instant rivalry with aiming to capture entire target audience and earn maximum revenue. There are ample of market challenger strategies including frontal attack, flank attack, encirclement attack, Guerrilla warfare and bypass attack strategy. One of the significant strategies that mainly used by the companies is bypass attack. The bypass attack is most significant indirect marketing strategy initiated by the challenging company with a view to surpassing competitor by beating and attacking its easier markets. The main motive of this strategy is to broaden the company’s resources by capturing and attaining the market share of the striving company.
It is stated by Weinreich (2010) an organization could adopt any of the three approaches before introducing the bypass attack:they can either categorize into the unrelated and inadequate products into the new and innovative geographical markets or leapfrog into the advanced technology. All three approaches provide ample of resources and competitive benefits to the company. The bypass strategy is also called as leap frog strategy. It is a business strategy that comprises a firm avoiding a competitor’s offensive moves and instead selecting to improve and explore its business. The bypass strategy is generally initiated if a firm feels responding to opponent aggression would not be wide or would be counterproductive. According to Tsai and Eisingerich (2010) bypass strategy is a innovative and unique to stand out against the rivalries in the international market. This strategy is used by ample of companies to beat the rivalries in the market. For example, Pepsi uses bypass strategy to cope up with rivalries. There is a war between Pepsi and Coke thus Pepsi initiates bypass attack against Coke by introducing the mineral water brand, and the Aquafina (Businessjargons, 2018). By using market challenger strategies, the firm has been able to attain customer experience and needs.
Market Challenger Strategies for Competitive Advantage
According to Javadein, Rayej, Estiri & Ghorbani (2011) competitive advantage is a situation and aspect that permits a company to outperform its rivalries in the competitive market. The sustainable competitive benefits can be taken by rendering the consumer a excellent value than the rivalries, such as by providing products at lower prices and rendering good quality services to the customers across the world. It is portrayed by Hakan Alt?nta?, K?l?ç, Senol & Bahar Isin (2010) a sustainable competitive benefit is a tool to business growth and success. It is a force that enables a company to have a major focus, more revenue, higher customer satisfaction and better profit margins. It is a primary and significant driver of long term progress and business value. There are three types of sustainable competitive advantage include value advantage, focus advantage and value advantage. There are various to ways to create sustainable competitive benefits in the global market that have been discussed below.
- The companies need to understand and evaluate the market and its segment to stay in the competitive market. For example, Apple Inc. focuses on the plans, policies and strategies of the competitors to maximize revenue and returns internationally (Porter, 2011).
- The organizations need to develop an understanding of what customers actually want and set a value proposition that capture their attention and needs. It will help to attract and retain maximum number of customers globally (Porter, 2011).
- Work out the ample of things that companies need to do really well to deliver and support the value proposition like quality, branding, loyalty, service levels and pricing etc. It will help to minimize the extra cost with maximizing the revenue and outcomes.
- It has been stated by Porter(2011) an organization needs to understand and analyze the strengths and core capabilities of competitors. The company needs to find out innovative ways to offer value to chosen market. In this way, the organization has been able to attain its desired objectives and targets.
- Aside this, the companies need to design business model to provide support and render the value proposition (Porter, 2011).
It is noted that ample of techniques or tools are used by the organizations to strive with rivalries in the market. The techniques include SWOT analysis, pestle analysis, porter five forces analysis and porter diamond model. These techniques further help to identify and analyze the threats, challenges and risks of the market.
As per Choi, Kim & Lee (2010), innovation is a significant tool that leads to the creation of rivalries benefits for the businesses and further, it is an essential part of each and every company to beat the rivalries globally. Innovation is considered as the soul and heart of the company’s culture and environment as well. Without innovation, the company cannot attain competitive benefits internationally. Innovation can be any form such as excellent management, talented staff, innovative technology and resources. Innovation provides new opportunities to the companies for competing the rivalries in the marketplace. The needs, demands and requirements of the customers can be evaluated with the help of innovation (Nibusinessinfo, 2018).
There are enormous types of innovation such as disruptive innovation, radical innovation, incremental innovation and architectural innovation. It has been analyzed from the various analysis that innovation further helps in increasing and enhancing awareness among the customers related to products and services. It is one of the vital factors for attaining progress and success in any business. It helps the firm resolve issues, generate more revenue, maximize market share and overcome the rivalries. It increases competitiveness and reduces cost of the company with maintaining sustainability at the workplace (Nibusinessinfo, 2018). A significant and vital ingredient for staying on top is innovation. Encouraging and improving innovation at the workplace comprises encouraging workers to become champions in the global market. The organization can build and improve brand image and reputation in the global market by implementing innovation at the workplace.
Brand loyalty plays an imperial role in gaining ample of advantages globally. In today’s modern world, organizations use creative and innovative marketing strategies such as rewards programs, trails, incentives and loyalty. It is analyzed by Ghodeswar (2008) brand loyalty is a concept and tendency of consumers to constantly buy one brand’s products over some others. There are several ways to create and develop brand loyalty among the customers that have been elaborated below.
- Connecting with significant customers helps the company to create a sense of community and belonging. For developing brand loyalty, the companies need to focus on the trends, choices and preferences of the customers in the competitive market. By engaging with customers, the firm could able to make happy the loyal and trustworthy customers internationally (Keller, 2009).
- Consistency is a important element in developing brand loyalty among the customers. McDonalds is one of the biggest and well known recognizable brands in the market that satisfies the needs and demands of the customers.
- An organization needs to focus on the strategies and policies of the competitors to make a unique and effective brand image among the customers.
- Apart from this, social media channels and advertisement strategies can be used by the firms to promote and enhance the brand loyalty in the rivalries market (Keller, 2009). Brand loyalty helps in increasing level of satisfaction of the customers.
A literature is given by Jones, Clarke-Hill, Comfort & Hillier (2008) marketing is the management and study of exchange or sharing relationships. Marketing is initiated to generate, keep and fulfill the needs and requirements of the customers. It is true that market led strategic marketing planning process which helps in achieving goals and targets. Some of marketing concepts such as product concept, production concept, selling concept and productions are used by the companies to gain ample of advantages globally. Vasileiou & Rowley (2011) stated that strategic marketing planning is an important part of market that explains a company’s overall marketing efforts. The strategic marketing planning is used to maximize sales for the business producing it. By using strategic marketing planning process, the company can set the long term objectives, and develops a plan for implementation and control. This strategy also helps in maintaining strong and reciprocal relationship with customers in the marketplace (Yeshin, 2012). It helps in providing good experience to the customers globally.
Conclusion
It concludes from the above mentioned literature review that customer experience is essential key factor to determine and analyze the progress and success of the firm. The paper analyzes that how innovation, marketing mix and marketing challenger strategies help in attaining higher customer experience. Innovation and brand loyal also helps in satisfying the customers in a large extent. Marketing planning also is essential to achieve level of satisfaction and loyalty of the customers globally.
References
Businessjargons.,(2018). Bypass attack[Online], Retrieved from https://businessjargons.com/bypass-attack.html
Choi, H., Kim, S. H., & Lee, J. (2010). Role of network structure and network effects in diffusion of innovations. Industrial Marketing Management, 39(1), 170-177.
De Clippel, G., Eliaz, K., & Rozen, K. (2014). Competing for consumer inattention. Journal of Political Economy, 122(6), 1203-1234.
Ghodeswar, B. M. (2008). Building brand identity in competitive markets: a conceptual model. Journal of product & brand management, 17(1), 4-12.
Hakan Alt?nta?, M., K?l?ç, S., Senol, G., & Bahar Isin, F. (2010). Strategic objectives and competitive advantages of private label products: Manufacturers’ perspective. International Journal of Retail & Distribution Management, 38(10), 773-788.
Javadein, S. S., Rayej, H., Estiri, M., & Ghorbani, H. (2011). The role of internal marketing in creation of sustainable competitive advantages. Trends in Applied Sciences Research, 6(4), 364-374.
Jones, P., Clarke-Hill, C., Comfort, D., & Hillier, D. (2008). Marketing and sustainability. Marketing Intelligence & Planning, 26(2), 123-130.
Keller, K. L. (2009). Building strong brands in a modern marketing communications environment. Journal of marketing communications, 15(2-3), 139-155.
Nibusinessinfo.,(2018). Use innovations to start or grow your business [Online], Retrieved from https://www.nibusinessinfo.co.uk/content/advantages-innovation
Porter, M. E. (2011). Competitive advantage of nations: creating and sustaining superior performance (Vol. 2). Simon and Schuster.
Tsai, H.T. and Eisingerich, A.B., (2010). Internationalization strategies of emerging markets firms. California Management Review, 53(1), pp.114-135.
Vasileiou, M., & Rowley, J. (2011). Marketing and promotion of e-books in academic libraries. Journal of documentation, 67(4), 624-643.
Weinreich, N.K., (2010). Hands-on social marketing: a step-by-step guide to designing change for good. Sage Publications.
Yeshin, T. (2012). Integrated marketing communications. Routledge.
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