Segmentation Targeting And Positioning Strategy For The Google Glass - Case Study Example

Title: Google Glass STP Customer Inserts His/her Name Customer Inserts Name of Tutor Customer Inserts Grade/Course (Date) Executive summary A Google glass is a small, portable computer in which a mounted display has been installed. It is manufactured and produced by Google. This devise resemble a pair of normal eye glasses where the lens is replaces by a head up display. Weighing 8 pounds it is noted that currently lighter than normal pair eye glasses. These glasses have the ability to take photos and record at least 720p HD video. Additionally, while recording, a recording light is displayed above the eye but this cannot be noted by the wearer. To market the glasses in Australia, there has to be accurate marketing strategies which will ensure that the product gets to the market and the company meets the desired goals and objectives. This being the case, the use of segmentation, targeting and positioning are the best strategies to be employed to make sure that the product saturates the whole of Australia. This article discusses the measures that Google can take to reach the market and make sure that their products have a ready market in the area. Targeting the best group and having all the information about the market is very important in any market and therefore it has been emphasized. This paper elaborates on how Google glass can be marketed effectively by the use of Segmentation, targeting and positioning. Table of Contents Table of Contents 3 Products background information 4 Literature review 5 Segmentation, Targeting and Positioning 6 STP Strategy for Google Glasses 8 Segmentation 9 Segmentation Dimensions 9 Targeting 12 Positioning 13 Conclusion and Recommendations 14 References 16 Products background information Google glasses are wearable computer with a head mounted display (HMD) developed by Google. They display information in a smart-phone like hands free format that can connect to the internet through natural language commands. The glasses resemble a pair of normal eye glasses where the lens is replaces by a head up display. Weighing 8 pounds it is noted that currently lighter than normal pair eye glasses. The product is available in the United States for $1,500. These glasses have the ability to take photos and record at least 720p HD video. Additionally, while recording, a recording light is displayed above the eye but this cannot be noted by the wearer. Google glass offers many functions which include mapping, recording photos and videos with the ability of streaming live what one is looking at, internet searching and language translations, all at a voice command. Google glasses This device does not interfere with whatever one is doing. On the side it has touch pad control, on its top; there is a button for shooting photos and videos with inbuilt camera. There is also a small information display positioned above the eye, out of the line of sight and therefore there are no chances of interfering with the sight and activities of an individual. It also has multiple radios of data communication, a speaker, a microphone, and gyroscope so that it can tell the position and orientation of the wearer all the time. Finally, the glasses have audio output to the right ear only. The user is supposed to cut the hand over the ear and the glasses temple to amplify the sound. The titanium frames which are used to make the glasses are very comfortable and very light. In the meantime, plans are in place to make glasses for those clients who have prescribed glasses. This will mean that, there will be Google glasses with lens like those prescribed by doctors for those clients who have eye problems. It entails that, these are glasses which can be used at all the time and by everybody including those of are glass wearers at the moment. Literature review To successfully enter the target market, getting the right STP, segmentation, targeting and positioning of the products is of great importance (Weinstein 2006). It is worth noting that, product and services are not one size fits all variety and therefore following a structured process will allow the company to tailor their products and services they are offering to the customer. This is the main reason why products STP are very important (Jaman 2012). The strategic marketing planning process from set mission and vision statements to selection of target markets. To have specific marketing mix and positioning objectives for the products and services an organization is offering can never be compromised. Choosing the value, an organization segments the market, selects the appropriate market target and then develops the offer’s value positioning (Hunt & Arnett 2004). This means that, in strategic marketing, the formula of segmentation, targeting and positioning is of great importance. Segmentation, Targeting and Positioning This incorporates the partitioning of the market with an intention of selecting one or more marketing segments, which an organization can target through manufacturing products which have specific mixes which match a particular market need. Literature depict that, segmentation involves a distinct focus on the customer need rather than on attributes such as geography, demographics and industry. Boone and Kurtz (2005) stated that, if a company does not understand the details about their customer segmentation, there are high chances that letting customer and sales slip through the fingers. Segmentation is divided into two aspects. Segmenting organizational market and segmenting consumer market. Market based segmentation is correlated to an already known and usually used technique of segmentation (Simkin 2002). In this case, companies do not perform any research so as to identify which segment is the most appropriate. They just chose specific segmentation approach. In the contrary, post hic segmentation is based on thorough research of the customer’s evidences that come up with variables which become the background of the segmentation (Vukasovic 2009). Market segmentation is a very important issue in marketing management. This is attributed to the fact that consumers have different characteristics and preferences and these preferences are the ones referred to as variables which a company has to consider when segmenting their markets (Kotler & Wong 1999). This reads to the conclusion that, segmentation stage helps a company identify all clusters of possible customers and groups them based on same needs, demands, requirements and other characteristics. There are diverse segmentation methods; first is the geographic segmentation. This method defines customers in terms of their location, for example Asia consumers. It established contact with the consumer and eases distribution (Herrmann & Huber 2000) Demographic segmentation is deeper as compared to geographic. It defines consumers in terms of their age, gender, race, income and occupation just to mention but a few. This is very vital for it helps identify the best communication strategy and creative approach to use in regard to particular segments, lest says age (Kasim &Ngowsiri, 2011). Geo-demographic segmentation is yet another method used for segmentation. This is a combination of geographic and demographic segmentation. Psychographic segmentation is based on people’s lifestyle. It correlates to how people spend time and money based on the personality, attitudes, education, cultural and even social backgrounds According to Armstrong and Kotler (2000), the importance of targeting the right market to fit an organization capability can never be ignored. In actual facts, there is no area in the market plan that surpasses the selection of the target markets. There are some aspects which help marketer to have a successful market targeting; attainable, measurable, large, defendable and sustainable. In the same case, there are three approached to targeting as stated by Armstrong and Kotler (2000). First is the undifferentiated marketing which can in other words be referred to as a one marketing mix for the whole market. Differentiated marketing were diverse marketing mixes are used in different market segments. Finally there is the concentrated market targeting which used one marketing mix for various target segments (Inman, Shankar & Ferraro 2004). It is worth noting that, the use of these approaches depends on the size of the organization and the financial resources of the same organization. Petitioning is the thirds phase of the STP process as well stated by Goyat (2011 ). In this phase, the product is justified in relation to the result of marketing research results, and then creating an image that fits the targeted segment. This is the phase that a company uses so as to gain sustainable advantage over their competitors. For good position, a company must employ some very important factors. According to (Singh 2010), product differentiation, communicating and delivering the position are very vital factors in positioning. Selecting and prioritizing the competitive advantage and differentiating the products must be employed during positioning. STP Strategy for Google Glasses In order to gain competitive advantage, Google need to implement STP strategy for consumer base is very important when looking forward to selling a product. Segmentation Market consists of buyers who differ in many ways. These differences are either in wants, resources, location, buying attitude and buying practices. Through segmentation Google divides large heterogeneous markets into smaller segments that can be easily reached and have products which match their unique needs. Segmentation Dimensions Demographic segmentation Google glasses are portable computers and therefore they the biggest market that is going to opt for them Identified segment sizes Wealth Oriented Status Oriented Traditional Oriented Fashion Oriented Total Yuppies 6.2 Professional 5.5 Traditionalist 3.2 Fashioners 5.5 20.4 Rich Progressing Moderate Propellants 7.8 10.1 7.8 6.7 32.4 Total 14.0 15.5 11.0 12.1 52.8 Based on this segment analysis the following is noted: Yuppies are recreational users and employed in private sector. They have well elaborated objective. Money measures their standard of success. They value lifestyle. It is also worth noting that they are not sensitive to prices; international famous brand products are their option to show off their nobles. This means that, they are highly likely to opt for Google glass, first so that they can be associated with the international brand and so that they can be the first to show off unique glassed to their peers. They do not mind about the price of the commodity. Professionals hold leadership positions in companies and government entities. They have goal oriented lifestyles. They are also confident and rational. In the same case, they prefer reputable products and in most cases foreign products that show reflect success and status. These glasses have not been concentrated in the market and therefore the first people to have them are those who value class and they want value for their money. This therefore means that, they are more likely going to opt for the Google products, an international brand and a product that shows class. Traditionalist value convenience and successful people; this class social aspects and have advanced social satisfaction. They are slow to change and pay more attention to their families. In the same case, they do not value fashion or trends. They choose familiar and established brands such as quality domestic brand. Those who value fashion are successful and fashionable people with a lot of resources. They are modern and most receptive to new ideas and technology. They like attention and fancy romantic life. They value recreation and fun. Their purchases reflect class and taste and make impulse buying. This is the group that is more likely going to opt for Google glassed in Australia. There is close relationship between the buying behavior of fashionable and technology based products. In this case, those who are likely to buy the product are those whose ages are between 18-30 years and have an earning that is sustainable. Those who value fashion and do things to impress are the most likely lot to go for the glasses. This means that, the age is the highest determinant of the target group. At the same time the income status of the group is also important. Those who are satisfied with their income are more likely going to buy the products. This means that, segmentation followed by a selection of best evaluated markets is very important (Wedel & Kamakura 2000). Google marketing management must identify overall attractiveness and company objective, competencies and resources. Australia is an attractive market which if segmentation is implemented, then the marketing of the products is easier. With this segmentation, it is easier for Google to tailor make the product in relation to the preference of the various groups. This in the long run means that, Google will in the end have more satisfied customers and this will increase customer base and at the same time increase revenue for the company. Dealing with the competitors is vital in any business platform and knowing how to remain competitive in the market can never be ignored (Zabkaret al 2010). Segmentation is a solution to dealing with competition and this means that, accurate implementation of the same will result to having a very competitive advantage. Targeting Google targets different segments. The primary market of Google glass is young adults between the ages of 18-30 with the people from 30-45 comprising of the secondary market. These products are targeted towards people with strong connection to technology and are ready to go with its dynamism. In other words, this product targets the middle upper income professionals, recreational users and those people who are technology enthusiasts. The target people can enjoy advantages such as recording videos, sharing information and many other facilities that the gadget is offering. In the same case, the target market is for those consumers who store information reduce paperwork, wireless access and like sharing information with quite a wide range of people. To reach the target market, the four Ps are going to be used: product, price, place and promotion are very important as marketing strategies and ensuring that the target market get the product in the best prices and at their convenient place. The 4ps are going to enhance increased customer base and at the same time make sure that the target market is harnessed by the same strategy. Google should make sure that Google glasses are easily accessible in every corner of the globe. This product will have to be available in every outlet so that customers can buy them whenever they need them and at the same time buy them at their convenience. Google should also this about the cost of this product. The target market includes people who are financially stable and those who may not because at the stated age bracket, even the college students are targeted. The cost of the product should be achievable by the customer and therefore should be minimized from $1,500. Additionally, communication which means that there has to be ample promotion of Google glass will be implemented. The target market will get all the information about the product by the through proper promotion tools. There has to be a website that allows visitors to locate nearby Google product s consultant throughout the globe. Finally this product has to be designed in such a way that, all consumers’ needs are satisfied so that they can also refer more customers. This means that, the glasses has to be in from the best products for customers must get value for their money and at the same time the quality should never be compromised. Positioning According to Wood and Browne (2007), customer decision making process in very important in product positioning steps and therefore Google cannot despise the same. For Google is to successfully sell its products, it will have to tell its consumers the essential benefits of their product. There are various strategies to manipulating the market. High-priced goods or products are often viewed by consumers as better quality and worth more than their cheaper competitors’ goods. This is called the High-price strategy. Google can also use the distribution strategy where they only distribute their Google Glasses in pro shops and not in normal stores. This will make the public believe that they are the best models and hence make them be more desirable. Google is targeting consumers with a common interest or liking and therefore, they can easily position their company in a way that they will gain consumers from their loyalty to their interests. This is the affinity strategy. When the consumers have an affinity for products made in the United States, Google can advertise their products in a way that they will let the consumers know where the products have been manufactured. The devices can also be fitted with sensors which will form a communication link between the consumers and producers. This would give the producers a constant form of communication and by sending them updates. Google will position themselves in the consumers’ minds. can also explain the importance of their product and how vital it is in the modern world. They will manipulate the market in the sense that, the consumers who believe they are living in the modern world will start believing that it is difficult to survive without the commodity. This will easily position the product into the minds of the consumers. They can also highlight the flexibility of their product. There is also a final strategy which is mostly used by producer when they are producing one line of product and they fully understand all the consumer needs that may arise. This is where the producer will offer custom services like special repairs for their products to consumers in case of damage. This service strategy establishes a business as a place where the consumers can only go for all their custom repairs. These strategies will help the Google in occupying a position in the consumers’ minds and separate the producer from his competitors. This will also help in forming a clear distinction and uniqueness between the producers commodity from any other commodities willing to join the market. The positioning strategy will also help the producer in reducing time and money spent when analyzing the market Conclusion and Recommendations Google glasses are wearable computer with a head mounted display (HMD) developed by Google which display information and can connect to the internet through natural language commands. This makes them a technological product which is envy for many. This product can be used by anybody at any time for they do not interrupt with the current activities. At the same time, they have been upgraded to be used by people who use glasses and thus can be used to replace them as they also enjoy other features which this device have. To reach the desired market, Google need to employ marketing strategies which are designed to reach the target market and at the same time make sure that the company achieves its goals and objectives. STP strategies are the only solution in achieving this measure. Segmentation is very important as marketing strategy. These consumers have different characteristics and preferences which Google has to consider when segmenting the markets. It has been noted that, segmentation stage helps a company identify all clusters of possible customers and groups them based on same needs, demands, requirements and other characteristics Targeting is equally important in marketing Google glasses. Targeting the right market means that the products get to the consumers it was designed for and at the same. Using the best strategies to enhance target market success is important and therefore the 4Ps which are used in marketing mix are also used. Finally, positioning is also emphasized for it is vital in marketing products for Google will gain sustainable advantage over their competitors. Product differentiation, communicating and delivering the position are very vital factors in positioning. And thus must be employed. By employing the STP, Google glasses will enter the market effectively for they will meet the needs and wants of the customers. References Singh, A.., 2010. Market segmentation in FMCG: time to drive new basis for market segmentation. International journal of research in commerce & management, 1(8), pp. 30-66. Azilah Kasim & Naiyana Ngowsiri, 2011. Targeting the Market: Segmentation of Domestic Tourists for YOR Island, Thailand using the Correspondence Analysis Technique. International Journal of Tourism Sciences,, 11(3), pp. 36-56. Boone, L.E., Kurtz D.L., 2005. Contemporary Marketing,. South-West, USA : Thomson PP 40-55. Goyat, S., 2011 . The basis of market segmentation: a critical review of literature. 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