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Market segmentation and its role in marketing
Market segmentation and its role in marketing
Market segmentation and its role in marketing
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The principal marketing position of Lenovo Group primarily taking into account these three marketing positioning methods: high-end, middle and high-end combination. Middle and high-end positioning does not merely ensure the consistency of Lenovo Corporation’s orientation in the marketplace, but also constantly improve the image and status in the eyes of customers. Although the IT business’s margins decrease, choosing high-end positioning will be likely to hold benefits for competitive market position in a long run (Gan,2002,P27). In general, the high-end’s commodities’ sale margins are twice or thrice the number of sales in low-end goods. Besides, low-end goods have no warranty of margins in the growth of cost condition, so taking the high-end way is crucial to the corporation’s profits. Low energy is the major requirement of IT market to consumers, which also represents a high-tech company image. Hence, in order to improve corporations brand image, choosing the low energy consumption combining with the cutting-edge technology of Lenovo is a great way to enhance its market positioning. Currently, Lenovo brand’s service process is principally restricted to the after-sales service in a timely manner. With this small scope of positioning strategy, Lenovo could not stand a chance to compete in this fierce competitive market situation. In the 21st century, it is more likely that most of globalised companies will be a service industry rather than a manufacturing stated Bian (2005). The new economic pattern is service pattern and it is a competitive advantage for service industry. Therefore, Lenovo’s service department should take Dell and HP as a role model; Lenovo ought to offer more detail information on selling personal computers... ... middle of paper ... ... their report in 2006 , Lenovo was having 19 types of products with 200 different models of which both represent its diversity and choices for export . This in turn had saved Lenovo from being involves in the fierce market price competitions (Wang et al, No Date). Real value, brand value, service value and other formal value are based on the price strategy of Lenovo to build an independent perceived value in the customers’ mind. Therefore, Lenovo Group use these perceived value to set the standard price of its products and carry out a unique relevant valuable system. Relating to the awareness of unique value system and the model of Lenovo product’s price established the idea of brand and service with long year experience accumulation. The core competitiveness of Lenovo urges the enhancement of its brand value so that Lenovo continue to be in a dominant position.
As we learned from Chapter 12, price must be carefully determined and match with firm’s product, distribution, and communication strategies. (Hutt & Speh, 2012, p. 300) Therefore, there should be a strong market perspective in pricing. In order to build an effective pricing policy, marketers should focus on the value a customer places on a product or service. One of the most effective ways to do so is differentiating through value creation.
Ultimately, each of these corporations within the consumer electronics industry have come a long way. They have survived in a business society that has readily evolved and moved towards a whole new era of technology. It is still imperative that corporations do business internationally on a global scale in order to better meet the need of consumers within their industry. However, the ways of doing this have altered with a number of strategic possibilities. Phillips and Matsushita each incorporated a different strategy from one another, with each seeing its profits and downfalls. As the economy and industry have evolved, so must Phillips and Matsushita in order to maintain a stance of being a power player within the consumer electronics industry.
The computer obsession began when the first computer was built in 1939. There are many uses of a computer like the proper way and the negative way. The way Annalee Newitz uses her computer is good and bad. The definition of a good teaching tool is the best way to teach a class or something that is taught. Using a good teaching tool is not always easy. There are many things about computers who make people depend or use too much to stop depending on technology.
It is known that manufacturing process and cost reductions, which are pillar of the Dell business model, high profit margin will break the mightier growth for the company, through which, the best practices come in all forms. Hence, to conclude, when it comes time to decide the selection of the strategies, Dell should accept both strategies to a greater extent. It will be popular course of action for Dell to refute the claims of experts about the future of Dell. However, in this uncertain age of market, where globalization can play a key and integral role for business progress, Dell has to contemplate all the factors now to enhance its brand via products and marketing together with wide-ranging business models. Nonetheless, the management has to put its shoulder to the wheel to make the things
The Macbook Pro Retina is one of the most popular technological products in the current market. The Macbook Pro is marketed as the greenest notebook by Apple but there are elements of the product that are not environmentally sound. This is proven with the study from the process from cradle to grave of the new Macbook Pro Retina. The environmental impact of the Macbook Pro can be measured by the lack of recyclability in the creation stage, the level of emissions in the transportation stage, the facilitation of disposal by Apple and local governments, and the economic viability of the MacBook Pro.
The changes in the company by adopting business services industry helped the company in enhancing efficiency as well as presenting quality services to its clients. The adoption also led to speeding up business processes that positively reflected in reduction of wastages such as idle time. The acquisition of Affiliated Computer Services (ACS) also strengthened its position. This was facilitated by the adequate financial background and resulted in better product innovation as well as superior innovation in technology. To gain better competitive edge, the company can focus more on research and development of environmental products
My report is on the company Hewlett – Packard (HP) which was founded in 1939. I mainly focused on the Personal Systems Group (PSG): business and consumers PCs mobile computing devices and workstations which is one of the major industries of HP. In order to succeed in the business industry a company needs to understand its customer’s needs and create wants for them. HP found out that the customer needed light weight, useful notebook PCs through its Research & Development (R&D) centre. Hence, it created a want; a New Commercial Notebook PC Compaq Evo Notebook N1015v which packs the power and performance necessary for mobility into a stylish design for only $899(US $). HP also finds out about its customer needs through online feedback forms and survey. Via that, HP was also able to understand that not everyone are able to use their products hence it has created this HP accessibility products which can be accessed by anyone including people with disabilities and age – limitations. Example of such product under the PSG industry is the Mobile Speak Pocket which was specially made for the visually impaired people. ( Refer To Exhibit 1a – 1c )
This work will determine the baseline of the current market situation for the company, which is essential for any further exercise and analysis. To understand how the business model correlates with the product marketing, need to see if there is any evident cause-effect relationship between product characteristics and the nature of the product company. If such correlation exists, it will be important to see the transition of such characteristics into the company marketing strategy. It can show how company’s strategies can be successfully addressed in a real-world scenario. Both internal and external analysis, SWOT matrix will help to determine the company’s current market position.
According to the customer value triad theory by Earl Naumann, “value is a combination of quality, service and price” (Naumann, 1995). In this case quality could be defined as performance quality, the objective quality of a product (Kotler & Keller, 2012). A product with high performance quality, increases the value of a product. The value of a product is furthermore positively influenced by the service that is delivered (Kotler & Keller, 2012). The price however, can both positively and negatively influence the value of a product. A high price will in most cases decrease the value, but for some exclusive and luxury goods, a high price increases the value. The exclusivity, which is of intangible nature, is than one of the most important determinants of the value of the product. For most normal goods however, the objective quality is the prime determinant of the value. Although intangible benefits can be important in determining the value of a product, in most cases it is still the tangible benefits and costs, the objective quality and the price.
The company did not show much success until its expansion in 2005. In 2005, Lenovo acquired IBM’s “ThinkPad” business (Martin, 2014). This acquisition was a major strategic move for the company as it allowed the company to gain access to the foreign markets and consumers. It also allowed the company to signficantly increase its product offering in terms of volume. By acquiring IBM’s personal computer business, the company became the third largest PC manufacturer in the world (Martin, 2014).
A business is feasible when it is able to generate profits, standstill despite of risks and achieve the founders’ goals (Hofstrand, 2009). In order to meet all of these achievements, the researcher need to investigate investment, technical market and commercial feasibility (How to conduct a feasibility study, 2015). In terms of Business model Canvas, the ‘customer segments’ component presents the market feasibility. Dell has targeted four main segments which allow the company to design, produce, promote and deliver different products with different features. In comparisons, the ‘value propositions’ contribute to the technical feasibility when the product is formed and advertised, ready to deliver. Dell has used different strategies to maintain and developed the brand including remain the same brand name for different products. This strategy is promised to stimulate customers’ awareness of the company, thus, attract numerous number of clients and increase annual profits. Finally, ‘channels’ characteristic focuses on accessing technical feasibility. Dell disposes different channels in order to reduce the transportation and warehouse costs as well as guarantee customers with aggressive on-time delivery. Consequently, as the cost has been lowered and the reputation has been improved, Dell is expected to maximize their revenues
After a 4 P analysis of the company one found that it found itself in a luxury market where product quality and constant innovation are key points for the success. That is why the production process and its design can take even months. Product line is extensive however it is only conformed of high priced products. Price in this case is a guarantee of the quality present in the product. Moreover, high pricing represent an element of differentiation that the customer appreciates. However this is not a setback, LVMH has managed to have world wide presence and success. To accomplish it its selective retailing division is of high importance. Nevertheless, promotion posses the major challenge since its through this that the image of the product its transmitted that is why the company poses a major part of its budget in this section. It is Important to note that the percentage allocated is higher than those of most competitors.
However the intense in economic growth also increased domestic competitions which lead Legend to consider more on growing global opportunity. In 2004, the company found that the Legend name was already a registered trademark in several Western countries and searched for a new name to use outside China. The firm prepared for international expansion with the announcement of the new Lenovo name and logo. The name was easy to pronounce in many languages and available for brand registration in major markets while retaining the original Chinese name for use in the home market.
Product positioning is to use certain features of the product to position against the product of competitor. With the help of this marketing activity, marketers can attract more customers by focusing of special features of their product.
The ability of the management in positioning and establishing the product is a success in any company that operates for marketing and profit acquisition. Furthermore, the ability of the company and its management to complete and maintain a competitive edge among its competitor throughout the product differentiation is another basis to say that is successful. Also, innovation and the constant development on the product lines and the growing number of customers also define the corporate standing of a company. Effective branding strategy and strong brand name are an important part of the profitable business. But, all the strategies and all marketing theories can be worth nothing without the compliance of the desires of consumers.