Market Segmentation as a Competitive Strategy

by

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION1

1.1 Research Problem1

1.2 Research Objectives2

CHAPTER 2: LITERATURE REVIEW3

2.1 Studies Abroad3

2.1.1 Educating Agents3

2.1.2 Marketing Mix4

2.1.3 Attitude and Behaviour Intention6

2.1.4 Purchase Intentions6

2.1.5 Motivation8

2.2 International Marketing8

2.3 Theories of International Marketing -Market Segmentation9

2.3.1 Cultural Factors9

2.3.2 Political factors10

2.3.3 Geographic location10

2.4 Competitive Advantage11

CHAPTER 3: METHODOLOGY13

3.1 Research Design13

3.2 Data Collection Procedure13

3.2.1 Interviews13

3.2.2 Searching Literature14

3.4 Participants15

3.5 Ethical Considerations15

3.6 Rationale for a Qualitative Study16

3.7 Research Timetable17

BIBLIOGRAPHY18

CHAPTER 1: INTRODUCTION

1.1 Research Problem

Growing competition have forced the firms in the global market to continuously involve in defensive and offensive marketing strategies, and to develop marketing strategies that would help them in acquiring a competitive advantage over other companies, specifically their competitors.

The rivalry in competition occurs due to one or more competitors feel that there is an opportunity to enter a particular market or that the pressure of retaining and attracting customers is increasing (Cateora, 2010, 156). The competitive moves and strategies developed by the firm can at times significantly affect its competitors, hence, inviting retaliation or counter strategies from the side of the competitor. In order to attract majority of the customers in this competitive environment, companies devise and develop marketing strategies that would help them in sustaining the competition. These could include, redefining pricing strategies, promotional strategies, advertising strategies, target market strategies, etc (Cateora, 2010, 156). Generally, marketing strategies differ in their top most goals:

Acquiring customers through various strategies like Market development- recovering previous due non-buyer; or Profiling - by customer acquisition that have so far purchased the product (Cateora, 2010, 159).

Increasing customer loyalty by customization or personalization or by introducing customer relationship management.

Recovering lost customers, for instance, by systematically analysing the data of lost customers and also analysing the complain management systems.

These strategies are developed by marketers in order to acquire maximum market share, create new markets and increase profitability.

1.2 Research Objectives

The aim of the research will be to identify market segmentation as the competitive advantage for firms in international markets. This aim will be achieved through following objectives:

To analyse the importance of market segmentation

To understand various theories related to internal marketing

To analyse different ways of market segmentation

To identify market segmentation as a competitive advantage

CHAPTER 2: LITERATURE REVIEW

2.1 Studies Abroad

2.1.1 Educating Agents

According to a leading marketing research organisation of America, around 75 percent of the retail goods and consumer packaged goods fail to earn consumers attention and persuade consumers in their first year. This is because of the inflexible shopping habits of the consumers. The analyst Jack Trout observed that on average, the families were repeatedly purchasing the same items, that constituted of around 85 percent of their households purchases, due to this attitude, it becomes harder for something new to get on radar (Cooper, 2006, 122). The only things that can save companies and help organisations to be success with their product is to effectively market their product. In addition to this, the firms should be marketing their products in a way that influences their target to purchase the product. According to a UK based research, ...