Today’S Business World Is Highly Crowded And Competitive.

1066 WordsFeb 6, 20175 Pages
Today’s business world is highly crowded and competitive. Every organisation is striving hard to find an ideal market strategy in order to stand out from the rest of competitors. According to the Oxford dictionary, “Ideal” can be defined as perfect or most suitable (Wehmeier et al. 1948, pp. 768-769). In reality, there is nothing perfect. In this case, finding an “ideal” market strategy can be seen as finding the “most suitable” market strategy. Segmentation, which is the first stage of the target marketing, is a process of dividing the entire market into homogenous market segments. The essay is going to explain why segmentation is the “most suitable” market strategy for an organisation to grow its market when comparing to the other…show more content…
Like Apple Inc., it mainly targets on 18 to 45 years old of females and males, who are students, professionals, managers, and executives with high income (Dudovskiy 2016). American customer satisfaction index (2016), shows Apple Inc. has the highest customer satisfaction rate than its rivals: an 81% satisfaction rate for smartphone and an 84% satisfaction rate for the laptop. The figures suggest Apple serves their consumers’ needs and wants better than its rivals. As a result, Apple can gain competitive advantages over time such as loyal customer base (Sparks 2015). Therefore, segmentation is great for an organisation to build competitive advantages by a better understanding the needs and wants of consumers. Secondly, segmentation increases organisational sales, market share and public images by improving the organisational competitive position. After identifying segmentation variables and market segments profiles as above, an organisation can concentrate efforts on the most productive and profitable market segment. It involves an evaluation of potential segments and a selection of target segments. The evaluation of potential market segments requires an analysis of sales potential, the competitive situation and cost structure. Organisation sales potential is to estimate the maximum sales revenue

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