Online Market Segmentation Challenges and Available Viable Online Market Segmentation Alternatives - Research Proposal Example

Market Research Name: Course: Institution: Date: Table of Contents Table of Contents 2 1.0 Introduction and Research Focus 3 2.0 Secondary Research 4 3.0 Exploratory Research Findings 6 4.0 Research Objectives 7 5.0 Conceptual Diagram 8 6.0 Questionnaire Design 9 7.0 Sampling Design 13 8.0 Conclusion and Practical Contributions 13 References 15 Online Market Segmentation 1.0 Introduction and Research Focus The global economy is drifting its operations from the traditional market structures to the new structures and infrastructure. Traditionally, customers purchased their products from physical business platforms. In this case, visiting of physical stores and physical purchases was a common market practice. This as evidenced by Merrilees (2001, p. 178) in a study to evaluate the marketing structures in the traditional market set up. In this case, the market faced increased marketing challenges in its operations such as distribution. However, the existing market structures at the time allowed for increased market segmentation efficiency. In this case, the markets were segmented based on demographics and earnings as well as geographical locations. Consequently, physical retail outlets such as the clothes outlets had definite market segments to serve in their respective markets allowing for the application of marketing strategy mix issues such as the discriminatory pricing policies s as well as specific product features provision. However, technology development has altered these structures. In this regard, technological developments in marketing and other operational processes have resulted to the adoption of an online business platform in the global market. Although the traditional business platform allowed for segmentation, it created market challenges in distribution as well as increased business transactional costs. Consequently, it led to the production and availability of high cost products in the market. Therefore, business organizations sought to establish an alternative through which such markets would increase their profitability with sustained production processes and procedures, an alternative presented by technology developments (Galbraith, Ehrlich and DeNoble, 2006, p. 675). The introduction of an online business platform where customers would purchase and book products online allowed for increased market profitability through considerably reduce costs of doing business. In this regard, the market availed products at reduced costs as compared to the traditional physical distribution platform. However, this has led to the emergence of a new business challenge in market segmentation. Shaw (2011, p. 257) in a study to evaluate segmentation established that the market faces increased challenges due to the lack of enough customer profiling and definite structures to allow for segregation that forms the basis of market segmentation. In this case, the study established that the online platform does not provide ample avenues through which customers profiles can be established for efficient segmentation. Therefore, this research focuses on investigating the concept of market segmentation under the online business platform In this regard, the research focus is based on the challenges encountered in the segmentation process, s well as the available alternatives to this challenges. Therefore, the research focuses on creating a framework through which online organizations can base their segmentation process. As such, the proposed research is an expository study that aims at creating a framework and platform for future research projects into resolving the existing online business market segmentation dilemma. 2.0 Secondary Research In evaluating the possibility and need for the proposed research, this proposal highlights and reflects on a number of past research studies conducted on the topic. In this regard, the study evaluates past studies on the online segmentation topic. As such, it reviews studies elucidating on the concepts of online market segmentation, the associated challenges and the possible merits of such successful segmentation approaches. Online marketing is anew emerging concept that has attracted a wide range of organizations as well as the consumer base. In this case, Lewer, Gerlich, and Pearson (2006, p. 97) conducted a study to evaluate the growing nature of online marketing. In this regard, the study sought to establish the nature and extent of growth in the market. As such, it sought to establish the level of attractiveness of the new business platform and its implications on the overall implications on the consumer market. In its analysis, the study developed a research hypothesis that the market was increasingly attractive and had wide spread implications on the consumer market trends and behaviour. The study adopted a sample case study of issues both in the online and traditional physical market platforms. On its part, the study analysis established a number of key factors in its operations. In this case, the study established an increased market presence through the online business platform. Thus, the study established that the market platform registered increased stakeholders entry over the years. In this regard, the study revealed that the market faced increased entry form both traditional physical platforms as well as new market entrants into the industry that established pure online platforms. Moreover, the study established that the market platform had grown increasingly attractive as a result of reduced costs f doing business. Therefore, in its conclusion, the study argued that it was imperative for the market to establish definite administration and operational frameworks to allow for increased market success. One among such frameworks include market segmentation Despite the established increased rationale for market segmentation on the online business platform, the market remains marjory un-segmented. This was established in a study on the online market segmentation by Badgett and Stone (2005, p. 107). In its analysis, the study sought to establish the nature and condition of market segmentation for the online platform. In its analysis, the study argued that unlike the traditional physical platform that had definite customers, the online market platform faced increased segmentation challenges. In this case, the study developed a hypothesis that the online market platform was increasingly difficult to segment. Indeed, in its analysis, the study recorded challenges such as minimal customer profiling, universal and standard products provision and diversity on consumers geographical and income backgrounds as the key challenges. Therefore, on its conclusion, the study argued that addressing these factors would enhance increased online markets segmentation. In a further study on online market segmentation, Furness (2008, p. 110) conducted a study to evaluate the merits of successfully segmenting such a market platform. In its analysis, the study evaluated a cases study of successful market segmentation process on Google Company. In its analysis, the study established that the organization has established diverse regional and even national Portals through which consumers can access information and data specific to their regions and home countries respectively. In its analysis, the study established that the organization has attained an increased market penetration and competitive edge development. Therefore, it argued that the development of an online segmentation strategy for organizations would enable the development of increased market penetration as well as increased sustainable competitive edge development. The above literature review focus on the need, challenges and subsequent merits of online consumer market segmentation. In this case, the proposed study seeks to build up on the identified issues to develop a definite framework and structure through which the market operates. As such, the proposed study seeks to develop its focus and rationale on the established literature. On one hand, the increased established attractive nature of the online marketing platform serves to validate the rationale for the proposed research, demonstrating its current market applicability as well as long-term strategic market implications. On the other hand, the developed list of challenges in online market consumer segmentation, will serve as the basis on which recommendations for improvements will be enacted. It is on the basis of these challenges that respondents’ feedback will be sought. In addition the case study on the emergent merits of successful online market segmentations validates the research project expenses both financially and in terms of time. As such, it is evident that the long-term benefit of a successful online market segmentation program would yield increased benefits that justify the incurred short term cost implications on the proposed research project. Therefore, the secondary data analysis establishes the data validity market. 3.0 Exploratory Research Findings In developing a conceptual framework for the proposed research project, this study proposal established that the evaluation of secondary data was insufficient to develop a focused research on the concept of challenges facing online market segmentation and the associated challenges. In this case, the study proposal sought to utilize alternative primary data collection strategies such as the utilization of focus group. Babbie (2010, p. 233) argued on the merits of focus groups in data collection. In this case, the author argued that focus groups are an imperative data collection tool. On one hand, the focus groups allow for increased experts interactions though the development of diverse professional experts in the market. Moreover, they allow for information clarification through questions and answers sessions in the group discussions. Therefore, based on these merits the study proposal development process sought to develop and employ the merits of focus groups in its scope and objective development. In its analysis, the study established focus groups comprising of students from across disciplines in the market. In this case, the study developed a ten member focus groups of students both undertaking the marketing sources as well as those in other courses in the institution. In this case, the focus group composition sought to establish a balanced perception and view on the online business platform market segmentation concept from both the marketing professionals and external stakeholders in the industry. In its discussion, the focus group met for a two hours session with the researcher as the focus group moderator. In the discussion, two main agendas were addressed namely, challenges in online market segmentation, as well as possible segmentation approaches for the online marketing platform. In this case, the focus group developed a list of challenges as well as segmentation strategic options. On one hand, the group identified challenges such as customer profiling and geographical distribution challenges as key among the challenges. On the other hand, the group developed strategic options such as regional online stores established, product diversification and targeted marketing strategies as among the ideal strategic options available for online marketing strategies. The proposed study seeks to utilize these strategies in the development of the proposed research study. In this case, the proposed organization seeks to establish strategies through which the market and be segmented. In particular the study seeks to develop the ideal market segmentation strategies through the establishment of appropriate questionnaire questions. Moreover, in its recommending for the strategic options, the study will evaluate respondents’ feedback on the ideal option among the developed strategies (Singh, 2012, p. 55). Moreover, the developed strategic focus group findings will form a basis for the development of the proposed study framework through which the study will be developed. Therefore, the focus group establishments will serve an imperative role in enhancing the proposed study development success. 4.0 Research Objectives The proposed research is based on a range of objectives. In this case, the study has both a general as well as specific objectives in the market. On one hand, the general objective for the proposed study is the establishment of viable alternative strategic online market segmentation strategies. In this case, the proposed study seeks to develop a list of viable alternatives through which online organizations can base their segmentation process on. In addition, the study has three main specific objectives for achievement as listed below 1. Establish online market segmentation challenges? 2. Establish the rationale for online market segmentation? 3. Establish available viable online market segmentation alternatives? On one hand, the study seeks to establish the existing online market segmentation challenges. In this case, it seeks to utilize the information as some background information based on which to assess as respondents understanding of the current strategic situations facing the online market. Moreover, the study intends to utilize the developed challenges as a platform for the establishment of recommendations. In addition, the proposed study seeks to establish the merits and positive implications of a segmented online marketing platform. In this case, the proposed study, through this objective, seeks to establish the rationality and the merits of the proposed development. As such, it seeks to evaluate the relevance and rationale for such subsequent recommended strategies for segmentation. Finally, the proposed study seeks to develop specific alternative segmentation strategies in the market. In this case, this forms the key strategic objective for the proposed study research. As such, the study has a strategic objective for the formulation and development of viable alternatives through which online organization can adapt to successfully segment their consumer markets in the increasingly competitive platform. Upon the establishment of these objectives the study will have facilitated not only literature development in the industry, but also enhance increased market efficiency. 5.0 Conceptual Diagram In its analysis, this proposal develops a mind map trough which the proposed research study will be developed. In this case, the proposed study will seek to establish an interrelationship between online marketing challenges, merits and alternatives and how they contribute t the topic and concept of online market segmentation. In this case, the study will evaluate how each of the identified factors influences the online market segmentation concept and the subsequent implications for each factor influence (Mullner, 2005, p. 426). Moreover, the study will seek to establish how the realization of the marketing challenges can enhance online market segmentation through the development of appropriate market segmentation alternatives. 6.0 Questionnaire Design Introduction: This is a questionnaire on the concept of online markets segmentation rationale and alternatives. The findings established in this case will be used for academic purposes and published as scholarly works for reference in the online business industry. Contributions and responses offered in this questionnaire will be treated with utmost confidence and confidentiality and no disclosures on the information source will be offered in the analysis whatsoever. Background Information: Under what category of the respondents below do you fall into? (Tick as appropriate) Online Organizations Internal stakeholder Consumer Technology Developer What is your Profession and years of experience……………………………………………………………………………………………………………………………………………………………………………….. Section One: Challenges In online Marketing This section seeks to evaluate and establish if there exist market challenges to segmentation on the online business platform. As such, the questions seek to establish such challenges and the subsequent implications. 1. Do you agree that there exist challenges in the online market platform consumer base segmentation? (Tick as appropriate) Yes No 2. Based on your personal assessment, to what extent does the existence of such challenges reduce the overall segmentation process? (Tick as appropriate) Options Response To a great Extent To a low extent Fairly Not at all I don’t know 3. Which among the listed factors would you rank as among the segmentation process challenges (You can tick on more than one option) Consumer Buying Behaviour changes Technology Challenges Market information shortages Others (Specify) 4. Explain your Choice on the alternative above……………………………………………………………………………………………………………………………………………………………………………………………………………….. Section Two: Online Market Segmentation Merits This section seeks to establish whether you perceive the online market segmentation process as a viable strategic alternative in the market. 5. Do you consider the online market segmentation strategy a viable alternative? (Tick as appropriate) Yes No 6. To what extent do you believe that online market segmentation will enhance increased business competitiveness? (Tick as appropriate) Options Response To a great Extent To a low extent Fairly Not at all I don’t know 7. Explain your Choice on the alternative above……………………………………………………………………………………………………………………………………………………………………………………………………………….. 8. To what extent will the online market segmentation enhance increased customer service and satisfaction? (Tick as appropriate) Options Response To a great Extent To a low extent Fairly Not at all I don’t know 9. Explain your Choice on the alternative above……………………………………………………………………………………………………………………………………………………………………………………………………………….. Section Three: Segmentation Alternatives This section is based on your responses on the above two sections. In this section, the research seeks to establish your recommendations on alternative segmentation approaches in the online market. 10. Do you have any recommendations on online market segmentation? (Tick as appropriate) Yes No 11. To what extent do you believe that the consumer buying behaviour has implications on the segmentation approach used? (Tick as appropriate) Options Response To a great Extent To a low extent Fairly Not at all I don’t know 12. Does the organizational operational Industry impact on the segmentation process Used? (Tick as appropriate) Yes No Maybe 13. Which among the segmentation criteria do you recommend (You can tick more than one) Question Response Consumer Earnings Consumer Earnings Consumer Geographical Location Organizational Product Zoning Others (Specify) 14. Explain your Choice on the alternative above……………………………………………………………………………………………………………………………………………………………………………………………………………….. Section Four: Recommendations 15. Generally, what recommendation do you offer with regard to online business consumer base segmentation………………………………………………………………………………………………………………………………………………………………………………………….. Thank you for Your Response 7.0 Sampling Design In conducting a successful research operation in the market, it is imperative to adopt an appropriate methodology in the process. In this regard, an adopted research design and sampling process implicates highly on the research project success. On one hand in the design development process is the establishment of a research sample. In conducting a research project, it is not viable for the researchers to investigate on the whole population. Therefore, research samples are developed form the entire population on a fair and representative basis (Kothari, 2005, p. 152). Therefore, in order to enhance this, there are numerous sampling designs available for researchers. In the proposed online market segmentation alternatives study, the study has a wide population base that ranges from online organizations, consumers as well as the technology developers. As such, it is imperative to develop a research sample that is representative of the entire population while as well enhancing increased success possibility. As such, the proposed study adopts other simple random stratified sampling design. In this case, the study stratifies its population base on the three identified categories namely the online organizations, consumers and technology developers. In this case, the proposed study sampling design will select members from each of the established stratus for fair representation purposes. Moreover, the sampling in each of the individual stratus will be random. As such, the study will focus on randomly selecting the samples without any discrimination. The adoption of a simple random sampling technique allows for increased equal population representation. In this case, the researcher’s attribute influence and the subsequent bias in sample selection will be reduced. Therefore, the approach and sampling technique allows for increased study results authenticity and market relevance. The provision of an equal sample and population segments representation in the study allows for the establishment of wide scope and inclusive proposed study finding and subsequent segmentation recommendations. 8.0 Conclusion and Practical Contributions In summary, it is apparent that the proposed research is an imperative step towards the establishment of a segmentation framework on the online business platform. In this case, the proposed study seeks to establish existing online market segmentation challenges in the global market. As such, it is forecasted that the established data will be applicable and of increased relevance to policy makers on the online platform. As such, the market policy makers will rely on the establishments of this study to develop a framework for future segmentation strategies in the future. On the other hand, the study seeks to establish findings on the merits and relevance for increased online market segmentation. In this case, the study findings will serve as key strategy in the development of online market segmentation strategies. As such, the findings will serve as a rational basis on which managers and organizational marketers can justify market budgets and expenses incurred in the segmentation process. As such, the proposed study findings will serve as a viable marketing financial funding tool. The organizational marketing function activities and processes rely on the established and allocated funds on the enterprise. In this case, the organizational management allocates marketing funds based on the established rationality on the marketing budgets against the long-term expected returns. Therefore, though a short term expenditure on the respective organizations, the proposed study seeks to establish a platform on which online market segmentation funding and expenses can be justified. Finally, the study findings on the availability viable strategic online market segmentation strategies will serve an increased role in enhancing online market segmentation. In this regard, the study findings will enable strategic managers in online organizations evaluate and establish the ideal and most appropriate alternative for segmentation on their respective organizations. However, it is expected that organizational managers will develop strategies based on the respective industry specific consumer buying behaviours’. The proposed research study is cognizant of the fact that the market faces an increased consumer buying behaviour variances with regard to different industries in the market. References Babbie, Earl R. 2010. The practice of social research. 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