Market segmentation, targeting and position refers to the process of ensuring that there is an effective marketing program that focus on a certain unit that is likely to purchase the product. This report therefore uses the Google Glass to illustrate the market segmentation, targeting and position of the product. Google Glass is a product that was developed by the Google X lab company. The product has unique features such as ability to take voice command, as well as installed with web camera among others. The product has not been doing well in the Australian market. This is because the product has been facing some stiff competition from similar product from China companies. In order to ensure to that the product is able to reach a greater proportion of the market share, it is important for the one to establish the segmentation of the Australian market. In relation to this the Australian market can be segmented based on factors such demographic composition, psychographic composition among other. After market segmentation the next step involves market targeting. In this case the best method to use while in targeting is differential since the Australian market is already segmented. The marketing position is the last step in market segmentation. This step involves communicating to the consumers about the product and the company.

Background information

Google glass is a product that was developed by the Google X lab company, which has been involved in working for futuristic technologies such as the driverless cars. The Google Glass can be termed as a wearable computer, which has a head, mounted display. The glass is also mounted with a web camera, microphone, and GPS. Another important feature is the fact that it is voice controlled and can allow one to take pictures, videos, and send messages using the speech text. The device can also allow one to connect to a video conferencing technology and talk to people through the web camera and stream that will allow one to see and use the Google maps. These Google Glass can be used in field such as medicine where they can for instance enhance the perception of the surgeons. Other areas where the glasses can be use include the military to oversee the overall troublemakers in places such as the club.

The introduction of the Google Glass by the Google X Lab Company has faced a lot of challenges. This is because companies such as Samsung have also tried to develop similar product with the same features. This has in turn created a lot of challenge since the company has been forced to lower their initials prices. In addition the management of the company must ensure that they develop effective market segmentation and position to ensure that the product is able to reach the intended market share. In Australia the company must ensure that they develop strategies to deal with negative propaganda such the product will the end the privacy life.

Literature review on segment, targeting and positioning

Segment

Segment is used to indicate the process of dividing a large unit into small units, which share some similarities (Lamb, Hair, & McDaniel, 2012, p.260). The main purpose of market segmentation is to allow the marketing program to focus on certain unit that is most likely to purchase the products. In order for business to define the category of the need that one is offering to satisfy. In this case the business can categorize their need based on the strategic mission or the goals of the organization. The business may also categorize the need of the business based on the operation plans of the business. In this case, the segmentation need is based on the general operating policies and procedure. After establishing the category of various needs then the next thing is to establish what the need is in each category. In this case, one of the needs of the segmentation is to offer a reduction in the price (Quinn & Dibb, 2010, 1251). The segmentation can also allow have an improved cash follow with proper segmentation. Most importantly proper segmentation in an organization can allow it realize an increase in their productivity. In addition segmentation allows can allow improving on service delivery. Moreover, the basis of market segmentation can also include gender, age, income, marital status and occupation.

Targeting

After the market segmentation the next step involves targeting. This process involves selecting a segment and then targeting the segment. The company may decide to use niche concentration strategies. In this the management of the company targets a particular group in the within the overall market (Cant, 2006, p.103). This type of strategy is used mostly applicable to small companies that who have relatively small overhead. However, the, main disadvantage of this type of targeting is the fact that the potential for sale growth, may be limited. An organization may also use the, mass undifferentiated strategies. In this type of strategy the organization is concerned in selling of a single product to the whole market. This type of marketing can benefit an organization since it allows mass production of goods and service, which in turn allows the company to enjoy economies of scale (Romaniuk, 2012, p.289). The organization may also be interested to use the selective marketing. In this type of type of targeting an organization is concerned with targeting each segment with a specific product. This type of targeting allows the organization to spread the firm risk into various segment.

Positioning  

Positioning refers to process in which the marketer or the organization tries to create the image of the product in the minds of the target market (Blythe, & Zimmerman, 2005, p.85). This therefore implies that positioning is mainly about the perception. In positioning the management of an organization concentrates in changing how the customers perceive the product and the organization. In order for an organization to achieve the product positioning the organization must ensure that they know their target. The management of the organization also needs to ensure that they indentify the product features. In relation to this the management of the organization needs to ensure that they identify the unique selling preposition. Moreover, the management of the organization needs also to identify their competitor( Quinn,& Dibb,2010,p.1241). This can help to ensure that they develop the most effective ways of marketing the product. Most importantly the management of the organization also needs to ensure that they maintain the position of the brand in the market.

Market segmentation, targeting and position of the Google Glass

Importance of STP

Google Glass being a new product in the Australian market needs intense marketing to ensure that the product is able to achieve a significant, market share. Marketing of this product therefore first involves indentifying the customer needs and then delivering this product with regard to the needs of the customer (Lamb, Hair& McDaniel, 2012, p.260). Marketing of this product will first help to attract the sales of this product in the market. Attracting sales of the products also involves finding ways to put the products in front of the customers. Marketing of the Google Glass will also facilitate branding of the product in the market. This is to help ensure that the public are able to indentify the product. In relation to this another major advantage of promoting the brand of the product is the fact it will allow customer to recognize the brand in the market. In addition marketing will also facilitate establishing of a clear focus. In this case the management of the organization is able through proper following of the laid down procedure of effective marketing to ensure they narrow down their advertisement strategy to the Google Glass only. Most importantly proper marketing will help to clear any misconception regarding the product. In this case marketing of the product will help to clear the misconception being spread by the politician in Australia that the product will end the private life of people. Finally proper marketing segmentation positioning and targeting can help to ensure that the organization is able to develop to compete withier competitor’s products effectively.

Segmentation of the Google Glass

Segmentation helps to group customer with similar needs and responses towards the product. In this case the proper segmentation will enable Google X lab to meet the need of the selected customer in the most profitable way. Considering the Australian consumer market it is evident that the market can be segmented into the following segments to enable the Google Glass reach the required market share.

Demographics bases  

The Australian market can be divided on the basis of the demographic features consumers (Tu, 2000, p.313). In this case the consumers are divided based on the features such as age, household composition. Classification based on the age is one of the most important factors that need to be considered when introducing this new product. This is because the Google Glass is mainly expected to be on higher demand among the young people. This therefore implies that in the manufacture of these new products it is important for the management to ensure that they incorporate certain feature in the product to help capture the attention of the young people. The income of the household is also another factor that need to be considered when segmenting the Google Glass. In relation, to this the management of the company needs to ensure that they also produce products that can help to attract the middle and low-income earners.

Psychographic

The psychographics in market segmentation is mainly concerned with personality traits and various distinguishing feature. In this case the Google Glass market can also be segmented based on the on psychographic feature such as the social class. Considering the social class can help to ensure that the interest of the people in higher and lower social class are met in relation to the product quality (Bruwer, & Reid, 2002, p.218). In addition it is also important for the management to ensure that in the segmentation of the market they consider factors such as the lifestyle. This can help to ensure that the product is able to reach the people of different lifestyle in their comfort places.

Geographic

The Google Glass market should also be segmented in based on geographic location (Lamb, Hair, & McDaniel, 2010, p.119). This is because geographically Australia is divided into region variable population density. In this case it therefore important for the management of Google X lab company to ensure that the population factor is consider in the during the market segmentation. In addition, market segmentation based on geographical segmentation will help to ensure that adequate company products are able to reach the densely populated areas.

Behavioral

Behavioral segmentation refers to act of segmenting the market based on the consumer’s knowledge or various attitudes towards uses of the product. In this case, the management of the company needs to factor in the behavior of consumers. Being a product associated to the Google it is expected that the product will received with ease by the customers. This is because in Australia there are customers who are loyal to the Google products and therefore they are bound to buy even the new products. Factoring in the consumer behavior during segmentation can help to ensure that the customers who are loyal to the ordinary Google products are also given priority in the introduction of the new products.

Usage

The market segment may also be classified based on the usage pattern of the product. These patterns include ex-users, potential users, first time user, non –users among others. This type of segmentation is important since it will help to ensure that the regular customers who shop the Google products are given the first priority in the introduction of the new products. This is because there is high chance that the regular customers may also be tempted to try new products from the company.

Targeting of the Google Glass

Targeting refers to process of evaluating the attractiveness of each segment that has been defined during the segmentation process. In order to create an effective market targeting it is important for one to look at the current customer base. In indentifying the current customer can help to establish the regular customers and the potential customers. This is because indentify the regular customer and the potential customer can help to ensure that the one is able to pay attention to these type of customer. During targeting it is also important check the various strategies and products from the competitor. In this case, some of the known competitors of the company include Sony who has also introduced their own product which is similar to the Google Glass. This therefore implies that during targeting it is important for the, management of the organization to ensure that the new Google has unique features that can allow the customers to indentify the product in the market. The Google Glass can use the following targeting strategies.

Mass marketing strategies

In this type of marketing the firm does not target any particular segment in the market. This type of targeting therefore involves adopting a general marketing strategy that is aimed at appealing as many people. One of the underlying assumptions in this type of targeting is the fact that all the customers have the same need. This therefore implies that if they have the same need they can be satisfied using only one type of product where the prices are similar in all the areas. This type of strategy therefore aims at ensuring that the product is introduced into the entire market regardless of any particular segment. Undifferentiated targeting is cheap when used by an organization since one does not have to concentrate on the individual market segment. However, it is also important to note that the use of this method also has some disadvantages since it might be difficult design marketing campaign to cover the entire market segment .

Differentiated marketing

This type of targeting involves engaging different marketing strategies for different segments. In this, case it therefore important for one to develop an effective marketing campaign to cover effectively each market segments. Moreover, this type of strategy has a major advantage since it can allow the business to spread the risk over a wide region. This is because the failure of one the segment can not affect the marketing mix of other segments. in order to ensure that the choice to effectively develop the right targeting strategies, the following factors must be put into consideration.

Factors to consider when choosing the targeting strategy of Google Glass

Stage of the product-maturity

Various studies indicate that segmentation of the market is mostly applicable during the maturity age of the product market. This is because at the product maturity stage the buyer needs are different. In this case since the Google Glass is new in the market the product the best method to use is the undifferentiating targeting strategy. Another reason why this type of strategy is mostly applicable is the fact that there are few alternative product that are available that can substitute this product. In addition, the use of the undifferentiated strategy will help to indentify a broad segment of the potential buyers of the product. Moreover, at this stage of the life cycle of the product there is low competition from other companies and hence the use of the undifferentiated strategies.

Extent of buyer differentiation

In the situation where the buyer wants are similar throughout the market then the best method to use the undifferentiated type of targeting (Reid, R. D., & Bojanic, 2010, p.129). However, considering the fact that the Google Glass is a new product in the Australia market and hence there are only a small numbers of the users of the product then the best method is the undifferentiated targeting strategy. In addition, then there are there are very few firms that have introduced this product in the market hence no need for a segmented type of marketing.

Market positioning

The firm share in the existing market also plays an important in determining the targeting strategy used by a company. Company with low market share have to compete in the segments where their market products where their strength are high. In relation to this another important factor to be considered is the cost and the speed of the product distribution. However, it is important to note that since Google Glass is associated with Google company it is likely that the product will have a good marketing positioning. Moreover, since the Google Company already has a good market share then it will be easy for the product to be introduced into the market.

Adequate resources

Resource availability is also another factor that needs to be considered in choosing the type of targeting strategy to be used. In this case it is therefore important to note that the company producing the Google Glass has enough resources, which can even allow the company to use the differentiated type of targeting. In relation to this it is important tom note that the level of production of the product in an organization. In this case, the company has enough resources, which can allow it to produce the product in large quantities and therefore be able to serve different market segments.

Market positioning of Google Glass

Positioning is an essential component in marketing it involves communicating to the customer about the products and services. The positioning can therefore be termed as the natural follow up of the segmentation and targeting effort. In order t ensure that the Google Glass is properly positioned into the market the following factors must be put into consideration.

Factors to consider in positioning

Determining the key market attribute

This involves establishing the various unique feature of the market to which the product is to be introduced. In this case the Google Glass can fetch a good proportion share in the Australian market. This is because the Google Company already commands a substantial market share.

Product key attribute

The product key attributes is also important in identifying the market positioning of the product. In this case Google Glass have some of the unique features that can allow it be well positioned in the market. In relation to this the product is voice controlled and therefore allowing one to send messages and email only through a word of mouth. In addition the product is installed with a web camera that allows video conferencing. Most importantly the Google Glass can also allow one to access the Google maps.

Competitor key attributes

The competitor key attribute also an important factor to consider in the marketing of the Google Glass. In this case it is important to consider the product attributed offered by company such as Samsung and companies from China. This is because these companies have also introduced products, which are similar to the Google Glass. In this case in order to eliminate competition from these companies it is important for the company producing the Google Glass to ensure that they continue producing quality products. This can help to ensure that the company is able to continue positioning their brand in higher level above other companies. In relation to this it is also important to consider the current position of the product in the market. In this case since the product is new in the market then the large amount of resources are required to facilitate product positioning.

Positioning strategies that Google Glass can adopt

Value based positioning

This type of positioning is based upon the relationship between quality and price. In this type of positioning the management of an organization is mainly concerned in ensuring that they produce a quality product, which enables the product it to be sold at a considerable amount. In this case the management of the company needs to ensure that they maintain the production of Google Glass with advanced features.

Technology based positioning

Technology positioning is one of the best positioning strategies that the management of the company can use in order to introduce the Google Glass. This is because Google is normally associated with a good reputation for its innovativeness and creativity. This reputation can therefore help to ensure that that the company is able to position their products above their competitor.

Product class positioning

The product class positioning is another method that can be used by the management of the company to position the brand. In this case the Google Glasses can be positioned in manner to ensure that different feature is incorporated in the product to suit a certain social class. In relation to this the association based positioning can also be used to position the product. This type of positioning attempts to brand the group of consumers who use the products. However, type of positioning can help to play a key role in the reaching the mindset of the consumers.

Conclusion

Google Glass being a new product in the Australian market needs to have an effective marketing strategy. In order to develop an effective marketing strategy it is important for one to establish the different market segments that are available in the Australian market. Segmentation can help to ensure that the product is able to meet the need of customers in different market segment. Considering the Australia Google Glass market can be segmented based on factors such the demographic, geographic location among others. Targeting is also an important process in the marketing of the product. This is because it helps to ensure that one develops a marketing strategy for each segment. Moreover, positioning also plays an important role in ensuring that the customers are given more information regarding the product and the company producing it

Reference

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Bruwer, J., Li, E., & Reid, M. 2002. Segmentation of the Australian Wine Market Using a Wine- Related Lifestyle Approach. Journal Of Wine Research, 13(3), 217-242

Cant, M. C. 2006. Marketing management. Cape Town, South Africa: Juta.

Lamb, C. W., Hair, J. F., & McDaniel, C. D. 2010. MKTG4: Student edition. Mason, OH: South- Western Cengage Learning.

Lamb, C. W., Hair, J. F., & McDaniel, C. D. 2012. Essentials of marketing. Mason, Ohio: South-Western Cengage Learning.

Quinn, L., & Dibb, S. 2010. Evaluating market-segmentation research priorities: Targeting re-emancipation. Journal Of Marketing Management, 26(13/14), 1239-1255

Reid, R. D., & Bojanic, D. C. 2010. Hospitality marketing management. Hoboken, N.J: John Wiley & Sons.

Romaniuk, J. 2012. Five Steps to Smarter Targeting. Journal Of Advertising Research, 52(3), 288-290

Tu, Y. 2000. Segmentation of Australian housing markets: 1989–98. Journal Of Property Research, 17(4), 311-327.

Websites:

http://www.managementstudyguide.com/market-segmentation.htm

http://www.marketingteacher.com/lesson-store/lesson-segmentation.html

http://www.businessplans.org/segment.html

http://toolkit.smallbiz.nsw.gov.au/part/3/10/49

http://www.slideshare.net/morrison2010iulm/market-research-and-segmentation-plan