Differentiation and Segmentation in Walt Disney World - Essay Example

Conversely, market segmentation delves into dividing the target market into segments with similar needs and then putting together strategies to target these segments. Taking a more specific approach by focusing on one organization such as Walt Disney World, gives a better illumination of the application of market segmentation and product differentiation as highly effective marketing strategies.

Walt Disney World has arguably divided its target market into five main segments namely Studio Entertainment, media networking, Parks and Resorts, interactive media, and Consumer Products. Disney’s segments are then developed individually by focusing on possible improvements in each segment. However, the segments are indirectly dependent on each other with each segment seeming to improve the other. For example, through studio entertainment and media networks, people around the world are aware of characters like Mickey Mouse among others. As such, providing people with a chance to see such characters in real life rather than on television is a major boost for the parks and resorts. Furthermore, the popularity of Walt Disney characters has also fueled the success of interactive media through increased sales of such products as console games. Additionally, Disney World produces consumer goods such as toys that are representations of highly renowned characters thereby boosting the performance of the consumer products segment. Moreover, Disney World has achieved great success emanating from its media networks segment that provides broadcasting mainly via the Disney/ABC Television Group and ESPN Inc. Creation of market segments has enabled Walt Disney to create a strong brand that propels the performance of each segment with a major focus on family as a whole consequently contributing to the success of the entire organization.

Disney World has also employed a product differentiation marketing strategy in its operations giving it a competitive advantage. In its entirety, Walt Disney’s productions are seemingly different from those of competitors giving it an advantage, especially through recognition. Moreover, Walt Disney’s products are designed in such a manner to suit different target groups based on different criteria such as age and culture. Product differentiation has been established through the creation of iconic characters and animated films about these characters. The worldwide acceptance and the likable perception of the characters created by Walt Disney has played a huge role in popularizing Disney and creating uniqueness making it a leading player in the industry. With this increased market penetration, Walt Disney has achieved customer loyalty despite the fairly expensive charges such as for admissions to its parks. As such, Disney can retain its relevance in the industry amid increasing competition levels.

Conclusively, retaining relevance and achieving success in highly competitive business platforms requires the incorporation of effective marketing strategies such as product differentiation and market segmentation. Product differentiation entails ensuring that products are better than those produced by competitors. Market segmentation delves into dividing the target market into segments and then employing all possible techniques suitable for those specific segments. For instance, Walt Disney has used both market segmentation and product differentiation marketing techniques to gain a competitive advantage and consequently great success. As such, it is evident that product differentiation and market segmentation are effective marketing strategies.