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Exploring the New Age of Micromarketing

April 29th, 2016 3:51 am

Traditional mass marketers, expend huge advertising budgets to reach out to a large audience. The main argument in favour of the widely used methodology of mass marketing is that it attracts maximum potential consumers and has a wider reach.

However these marketers are increasingly finding themselves with cost overruns and diminishing profit margins. This can be accounted to the gradual change in buying patterns and the changing consumer buying behavior. With the increasing proliferation of advertising and distribution, advertisers are caught up in an intense competitive scenario, where the costs are huge and the hit ratio is less.

This can be attributed to the fact that consumers buying patterns are changing and this has led to creation of various microsegments within a particular customer segment. For example, consider a market segment for compact sedans. A compact sedan may be targeted to various segments like young married couples or the unmarried buyer with high median income.

The preferences of consumers within the particular segments vary, and hence automobile companies launch a wide range of variants at different price bands to satisfy a wide range of consumer needs within the same microsegment.

Maruti Suzuki’s portfolio consists of thirteen car models with at least forty variants, to cater to different needs of consumers. The base model of the vehicle may not have air conditioning or power steering, but for the models that have these features, the buyer has to pay higher prices.

The key for marketers is to identify the microsegments that are willing to pay the premium for additional features and roll out newer variants to satisfy the needs of diverse consumer segments.

The trend shows that consumer satisfaction is passé. Consumers want to be shocked, surprised and jolted out of the boredom of the routine product offerings. Consumer delight is the way of the future. This is why companies like P&G, McDonalds, and LG have used micromarketing techniques to satisfy a wide range of customer expectations.

For example, P&G created a separate budget for introducing a product variant which was called Pantene Relaxed and Natural to cater to the needs of Black Women in the United States. The customer now knows that he is the king. Given the newly evolved demanding consumer, huge competition, shrinking marketing budgets, the challenge for today’s marketer is to get closer to the consumer by micro-segmenting and micro-positioning his offerings.

The Evolution of High Technology

April 29th, 2016 3:47 am

High technology or high tech refers to the kind of technology that is cutting edge, advanced, and currently available. High technology does not refer to a class of technology because all kinds of technology have been considered high tech at one point, before being considered low tech or obsolete as time passes. It really has no definite definition and as long at is currently available, marketing firms mark new products as high technology. The term high technology or high tech first emerged in the 1950s in a New York Times story alluding to the atomic energy that was advocated in Eastern Europe.

The use of high technology is often directed to the one with the most potential for advancement and growth in the future. This is true with economy’s technology sectors, which develop advanced technology. This perception leads to investment that can also come as a risk when expectations fail and the potential is not realized. In this case high technology can also become a high risk at the same time, opening doors for high profits.

High technologyhas become an international phenomenon all over the world through the information technology and the Internet. Today’s businesses all are able to connect with each other 24/7. High technology sectors include Aerospace, Artificial Intelligence, Electrical Intelligence, Computer technology software, Nuclear Physics, Telecommunications, Robotics, and Nanotechnology.

High technology is also apparent in today’s competition between and within industries. An example of this is the manufacturing of sports footwear apparel and the growing competition between the brands involved. In catering to the needs of its market, top sports brands for footwear also grow competitively in terms of producing products from general shoes to different kinds of sports shoes, evolving from their looks and engineering, catering from the young market to the older ones. Even its services and packaging have developed to address both market needs and to position respective brands ahead in the game. The development of technology in this industry has even adjusted to the needs of the market. Today, brands tap into their fashion and style requirements. This competitive scenario contributes to growth not just of target market, the brands and their industries but also to science and technology as a whole.

High technologyand modern progression of discovery is motivated by capitalism and industrial evolution as well as the patent system. The varied forms of capitalism have made it possible to market products for a substantial return of investment. Thus, there are more means and opportunities to produce and market more products. With advancements coming from all sectors in society the market is bigger and larger. Technology in manufacturing also makes mass production possible, which cannot be compared to manual production.

Urbanization and industrial revolution found people moving to urban cities with larger population widening the chances for profits. The patent method protects the investors in terms of intellectual properties and trademarks, which is important in achieving their business goals and developing their merchandise. High technology has indeed made an impact in the current era driving healthy competition to gain better results in personal and business advancements.