Marketing Segmentation for Motorola Droid Razr - Case Study Example

Marketing Segmentation for Motorola Droid Razr Name: Institution: Table of Contents Executive summary With the increasing global competition among various industries, most organizations have invested their resources towards satisfying the consumer needs including factors that must be employed to meet their needs and motivate them. Additionally, organizations have chosen to adopt market segmentation to enhance their market gains and business success. Understanding the needs of each market segments aids organizations management in accepting the variables that should be re-evaluated to enhance competitiveness and productivity. Therefore, this essay will discuss in detail the consumer analysis used in the Motorola company to enhance the marketing of their new product DROID RAZR smart phone into the market. This will be done basing on the principles of means and ends theory to understand the varied consumer needs which must be satisfied. Additionally, the essay will analyze market segmentation which should be adopted and their influence in organizational performance. The segmentation methods which should be adopted include behavioral, demographic, benefit and psychographic segmentations. The essay ends by coming up with recommendations which should be embraced by the organization to enhance the marketing of their new products. Introduction Motorola Inc. is one of the world’s best telecommunications company known for its quality products which include electronics such as phones and televisions. The organization is divided into two public companies; the Motorola solutions and the Motorola mobility. The organization provides its consumers with high quality broadcast network products such as digital video recorders, video broadcasting and set-top boxes. Additionally, the organization provides job opportunities to thousands of people globally. Some of the organization’s attributes include dedication to quality service provision, consumer safety and protection of the natural biodiversity. In response to the rising global competition in the electronics market, Motorola Company has introduced various products into the market with the core aim of enhancing their sales and attracting more consumers to buy their products. One of the new products introduced to the market by the organization is the Motorola DROID RAZR smart phone. Successful marketing of this product largely depends on effective conducting of consumer analysis to understand and provide services that meet consumer demands. Additionally, proper market segmentation should be done to enhance the product’s marketability. Understanding the influence of each market segment enables the organization plan for the necessary resources which might impact on the product’s marketability. The consumer trend with the use of smart phone and other related products has been on the increase in the recent past. Bauman, 2002 identify that the rate of smart phones usage among various consumers have increased from 20% in the year 2009 to 28% in the year 2011. Most of the population making use of these phones is aged 21-45 years. Therefore, it is important for the organization to adopt the principles of product positioning to enhance product marketability and usage. One of the ways in which the organization will position the Motorola DROID RAZR smart phone in the market place is by ensuring that the product targets a specific group of people at the market place. The organization will also incorporate the ideas of retailing mix to enhance the product’s marketability. This ensures that two products are sold at the same time enhancing the product usage at the market place. The organization will also ensure that the new product has unique characteristics from the other smart phones at the market place. This will act as a product positioning since the product’s attribute will outdo the other products in the market increasing the usage of the new phone. The organization will adopt consumer friendly ways of marketing the Motorola DROID RAZR smart phone. This may include involving consumers in the promotion programs hence, acting as a product positioning tool. One of the market positioning strategies adopted by the organization to overcome products from other organizations such as the NOKIA and the APPLE organizations is ensuring that the product is available to the consumers at a relatively lower price than that of their competitors. The product’s services acts as a positioning strategy for this product. This includes three year warranty and free deliveries upon online purchase in vicinities close to the main retailers. The product’s features act as a positioning strategy on its own. The product encompasses all the products ideas from its competitors such as the screen type, size and internet connection services provided to the consumers. Other positioning strategies adopted by the organization over other competitors include involving consumers at the market place and promotional services to aid in the marketing of the product. Consumer analysis basing on the principles of means and end theory Effective consumer analysis will enable the organization understand the consumer needs, behavior and motivation as it plans to market their new product. This is done basing on the adoption of means and ends theory techniques. Means and ends theory will enable the organization understand consumer behavior, personal values, motivators and varied needs which should be satisfied to enhance the product’s market value. Thus, factors such as the new product attributes, product’s consequences to the consumer personalities and consumer values or goals that will be satisfied with the use of the new product should be taken into consideration (Larsen, 2010). One of the product’s attributes which should be taken into consideration to enhance consumer motivation and meeting of their needs is the product’s search value versus its experience value. This includes product attributes which the consumers assess before and after purchasing it e.g. product durability and effectiveness. Additionally, considering product’s intrinsic attributes will contribute to consumer satisfaction and motivation to buy the product. Intrinsic attributes include ensuring that the new product has unique ingredients which differentiate the product from other companies’ products. Therefore, the new product has long lasting battery durability than that of other companies, faster internet connectivity and new technology three dimensional technologies in pictures and movies play (Motorola, 2010). The product’s form attributes play a role in contributing to the satisfaction of consumer needs and motivation. This includes the new product size, shape, size and features of the phone screen. Consumers have different tastes to product’s attribute; hence the new product should possess unique form attributes to enhance its marketability. Consumer motivation towards purchasing the Motorola DROID RAZR will be influenced by the product’s price attributes. The product’s price attributes include cost of its warranty, shipping, products enhancements, replacement of its parts and installation costs. Therefore, the product’s price and its services should be affordable to motivate the consumers purchase the product. Therefore, this product is relatively small in its size, three year warranty for its customers, and provision of free services for the first five years of its use. This motivates the consumers to utilize this product (Motorola Solutions, 2010). Furthermore, services augmented with the product plays a role in contributing to satisfaction of the consumer needs and motivation. The services include product availability, delivery, customer assistance, maintenance, and installation services. Availability of these services motivates the consumers to purchase the product due to the ease associated with the use of the product. The product’s performance attributes contribute to consumer satisfaction and motivation. This includes the ways in which the product’s functioning is different from those of their competitors. Therefore, the new product has free services provided to the consumers such as free delivery by the retailers on online purchase and free customer care service readily available to respond to consumer needs (Hunt & Arnett, 2004). The new product attribute will also determine consumer motivation and satisfaction of their diverse needs. This includes ensuring the new product meets multidimensional characteristics such as the product’s quality, luxuriousness, and durability. Product’s meeting these attribute qualities satisfies the consumers’ extrinsic and intrinsic desires hence, product’s marketability. The organization’s new product should satisfy consumers’ experiential needs. Experiential needs encompass the satisfying consumers’ emotional and physical sensation when using the product. Thus, this product has high quality functioning such as free wireless network connection for the first one month of purchase, produced with high quality features such as large memory up to 18GB and attractive screen design which meet the consumers’ luxurious needs (Grigoroudis & Siskos, 2010).  The new product should satisfy consumers’ lifestyle and personal goals. These include satisfying their happiness, social recognition, achievement, excitement, self-esteem and social acceptance. Thus, consumer analysis should aim at ensuring that the new product meets nearly all the consumer needs which enhance products marketability and use by the consumers. The use of this product results to a sense of social recognition, enabling the consumers achieve their self-esteem and a sign of social acceptance in a society where fashion is a virtue. Ways in which the Motorola DROID RAZR smart phone will contribute to consumer motivation The Motorola DROID RAZR smart phone has unique product attributes different from other products at the market place. This includes the ease and efficiency associated with this product. Therefore, unique product features motivates the consumers to experience the use of that product. Motorola DROID RAZR smart phone benefits the users through various ways such as enhancing communication between families and friends in the fastest ways possible, providing its users with global trends updates and used for research purposes among other uses. This meets the consumers’ perceived benefits associated with the product hence, a motivating factor. Finally, the product identifies the customer’s social class, identity, prestige and pride. This leads to satisfaction of consumers’ personal values hence, acting as a motivational factor contributing to the use of the product Relationship between products attributes consumer benefits and personal goals and values (Hunt & Arnett, 2004) Market segmentation Market segmentation can be defined as the process of dividing a market into smaller divisions of consumers possessing specific characteristics, needs and behaviors. The success of the product’s marketing process by the organization will depend on the adoption of the most effective segmentation strategy. Market segmentation will enable the organization define its consumer needs and wants in a more accurate manner. Through segmentation, the organization will be able to identify market opportunities which should be effectively utilized to enhance the organizations and product’s marketing success (Hayes, 2008).  Marketing segmentation will help the organization identify and come up with new attractive market strategies that will enhance the product’s sales. Segmentation helps the organization to evaluate the effectiveness of their product and determine whether the consumer needs have been met. Through segmentation, the organization will be able to master the various features of their target market. Additionally, market segmentation will allow the organization design the best market mix for their new product enhancing their productivity. Consequently, the organization will be able to enable organization’s small distributors have the capabilities to survive in a competitive world dominated by the big companies (Grigoroudis & Siskos, 2010).  Additionally, by targeting the consumers stated below, the organization will benefit by retaining most of its customers in the competitive market place. Additionally, market segmentation will enable the organization meet the consumer demands more effectively through the heightening of the organization’s reputation. Market segmentation will help increase the organization’s sales which increase the organization’s profits. Increased organizational sales sustain organizational productivity and adjustment of the organization marketing strategies to meet the product’s requirements (Motorola Solutions, 2010). Consumers to be targeted by the market segmentation Market segmentation will target four major groups of consumers. One of these major groups is the professionals or the business users of the new product. Secondly, the segmentation will target the fashion seekers population. Thirdly, the segmentation process will target consumers interested in the new technology updates and related features. Finally, the market segmentation process will target the social lovers’ population (Weinstein, 2004).  Segmentation variables for marketing the new organization’s product One of the segmentation variables which should be adopted is the behavioral segmentation. In this system of market segmentation, consumers are divided into various groups basing on their knowledge, usage of the new product, response and attitude towards the new product to be introduced in the market. Behavioral determinants such as special occasions, product’s usage rate, and consumer loyalty status and consumer benefits will help the organization identify the best season to introduce their product into the consumer market. Occasion determines the times when the consumers make use of the new product hence, enabling the organization enlarge the new product usage scope (Hayes, 2008).  Behavioral segmentation will help the organization identify its targeted consumers as the product consumers can easily be identified and grouped basing on the product usage. Basing on this segmentation, consumers will be classified into various groups such as regular product users, new users, potential users and product’s non users. Behavioral segmentation will enable the organization identify their consumer status. This includes consumer ability to be loyal to their new product over other companies’ products (Roy, 1998). Secondly, the organization should use psychographic segmentation to identify their targeted consumer market. The process involves dividing the consumer market basing on their lifestyle, values and personality. Consumers in the same psychographic location have different psychographic features determining the usage of the new organizational product among this group. Psychographic differences will influence the type of services to be provided to the consumers utilizing the new product. Money-constrained consumers demand products with low costs than the time-constraint consumers hence, influencing the services needed and usage of the new organization’s product (Novotorova, 2007).  Consumers have different personalities. Psychographic segmentation enhances product’s marketability since the organization will provide new product which satisfies the consumers’ personality differences. Thirdly, demographic segmentation can be used by the Motorola organization to identify their targeted population by dividing the consumer market into different groups basing on sex, age, occupation, income, education, race, religion, nationality and generational gap differences. Through this, the organization will identify the target group which the new product will satisfy their desires, usage rates and preferences. Additionally, demographic segmentation will enable the organization know the targeted market size and reach to them effectively (Hunt & Arnett, 2004). Finally, the organization should use the benefit segmentation as a strategy of identifying the target market for their new product and enhancing the product’s competitiveness. Benefit segmentation will enable the organization identify groups of customers with similar preferences to the new product who can be targeted more effectively by adopting the most effective marketing mix. The organization is able to estimate the total utility required to meet the varied preferences exhibited by the targeted consumers. Therefore, the different benefits associated with the new product to the consumers will provide the organization with an effective basis of defining their targeted consumers (Motorola, 2010). Profiling of the market segment targeted consumers As stated earlier, the organization’s market segmentation targets four major groups of consumers. One of these major groups is the professionals or the business users of the new product application. Secondly, the segmentation will target the fashion seekers population. Thirdly, the segmentation process will target consumers interested in the new technology updates and related features. Finally, the market segmentation process will target the social lovers’ population (McDonald & Dunbar, 2012).  Professionals or business users of the Motorola DROID RAZR Professionals or business users include individuals who will utilize the product for executing and communicating business ideas in the fastest ways possible. This consumer target group will generate a huge source of income to the Motorola organization since they will adopt a large scale use of the new product in their organizations. The individuals in this group include students, business people, and academic professionals among other product users. The individuals in this target group will use the new product to carry out various activities such as doing professional researches, sharing business ideas, professional networking and updating their professional knowledge among other uses (Motorola, 2010). Fashion seekers population The new organization’s product will also target the fashion seeking consumer group. This includes the consumer population involved in constant updating of latest global trends. The consumers in this group are the individuals aged between 20 to 40 years of age. The group will act as a great source of income to the organization as they form the largest percentage of the global population. The individuals in this category will utilize the Motorola DROID RAZR smart phone receive latest information related to economic changes, political updates, social networking, and research purposes among other related uses (Grigoroudis & Siskos, 2010).  Consumers with technology interests This is the third consumer group targeted by the introduction of the Motorola DROID RAZR. This consumer group is made up of those individuals who show interests on the latest technological advances. Additionally, this group is interested in the features associated with the adoption of the new technology. The consumers in this segment are aged between the ages of 20 to 45 and are highly educated when compared to the above consumer classes. Like the above classes, these individuals use the Motorola DROID RAZR for other purposes such as updating their knowledge, professional research, networking purposes and monitoring economic changes among other functions (Motorola Solutions, 2010). Social lovers’ consumer group The last group targeted by the Motorola DROID RAZR is the social lovers’ consumer group. This group consists of consumers who are in need of making new friends and with the urges of communicating with their friends and families. The group will provide the organization with a huge source of income as individuals are always in constant need of getting in touch with their families and friends (Louviere et al. 2000). Diagrammatic representation of each of the above consumer groups (McDonald & Dunbar, 2012) Identification of the primary target audience The primary target audience of the introduced product is the consumer group with high interests in technological advances. One of the factors that makes this consumer group the primary target audience is its large population size. Members in this group exhibits high interpersonal competition towards adoption of the new technology. The segment has a high growth rate as compared to other segments. The brand loyalty in this group is high when compared to the other consumer targeted groups (Novotorova, 2007).  Additionally, the group will act as a great source of income to the organization. This is due to its large size and high purchasing power which will enhance organization’s productivity. This group will provide the organization with diverse ideas which the organization will use to enhance future product’s quality. Furthermore, this group provides the organization with the best marketing opportunity for its product. These opportunities provided by this primary group include market penetration, enhancing product development, and product diversification. This primary group will provide the organization with the required profit margins secondary to the high volumes from the product sale (Louviere et al. 2000). Influence of two reference groups on consumer decision making of the primary target audience One of the reference groups which might influence the primary target group decision making is the stiff competition the organization faces from its competitors. Motorola organization faces stiff competition from other organizations involved in the production of Motorola related products. These organizations include the Samsung Company, the Nokia Corporation and the Apple Company among other companies (Bauman, 2002). Presence of external competitors influences the primary target audience decision making process. The competitors produce products similar to the Motorola DROID RAZR. This affects the decision making process as the primary targeted group will have varied products to choose from hence affecting their decision making and usage of the organization’s product. Competitors may also provide the consumers with similar products to the Motorola DROID RAZR at lower costs to the consumers. This affects the consumers’ purchasing power and overall organization’s performance (McDonald & Dunbar, 2012).  Secondly, the primary targeted audience decision making process can be affected by technological changes. Introduction of new technology in the mobile industry may influence the consumers’ decision making since new products are made available for them. Therefore, technological changes make availability of new products with different features from the organization’s product hence, affecting the consumers’ decision making process (Mazzocchi, 2008).  Furthermore, technological advances shift the consumer preferences from the Motorola DROID RAZR smart phone. The primary target group is in constant demand of new technological adoption. Therefore, they are easily attracted to new technological advances which may affect their preference to the organization’s new product and their purchasing preference. Consequently, this affects the usage of the product negatively reducing the organization’s benefits from the product (Chan et al. 2006). Recommendations The organization should make use of various Medias to create consumer awareness to their product. This includes using various methods such as advertising in the social networks including Facebook and twitter. Additionally, televisions and radio can be used to create consumer awareness to the product. This will benefit the organization since creating consumer awareness enhances their attraction towards using the new product. Additionally, the organization should come with promotional strategies which will promote usage of the product. This includes coming up with promotional programs where the consumers are rewarded for purchasing the Motorola DROID RAZR smart phones. By doing this, consumers will be attracted to utilizing the product hence, enhancing the product’s marketability (Kenett & Salini, 2011).  The organization should standardize the new product’s price. This is to ensure that the product is affordable to most of the consumers enhancing its purchase and high profits from the product. The organization should adopt a unique and attractive product marketing brand. The brand should be different from smart phones from other organization. Uniqueness of the organization’s product attracts most of the consumers, hence, increased product’s sales (Yang, 2008).  The organization should take into consideration the consumers varied views on the product’s features, effectiveness and marketing strategies. This will enable the organization to re-evaluate their marketing strategies and also improve the existing techniques used to market the product. Additionally, the organization should consider adopting product mixing as one of the strategies to enhance their product’s marketability. Product mixing ensures that the organization benefits from selling two brands with close features increasing the organization’s income. Sample of consumers should be involved in decision making process. This includes decisions related to marketing strategies, market penetration strategies and consumer motivation programs to be adopted to enhance product marketability (Mark, 2010). Conclusion From the above analysis, it is evidently clear that consumer analysis plays a great role in determining the usage of a particular product. Consumer analysis ensures that the organization recognizes the value of understanding consumer needs, behavior and motivation in product marketing. Successful usage of a product cannot be achieved without carrying out market segmentation. 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