Marketing Plan Final. Business & Marketing Essay. Segmentation

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Segmentation
Market segmentation is a critical process to segregate the customer base strategically. In general, products and services offered by companies require a particular customer segment that would gain maximum utilisation from the consumption. A market segmentation process would subdivide the customer base into subgroups, which would further allow the organisations to manage the distribution of product or service effectively. Through the market, segmentation organisations tend to break down the customer base into manageable groups. The segmentation is a critical process of reaching out the right set of people and generating substantial market returns in an organised manner (White, 2019).
In the case of Uber, the company is a service-oriented business, offered to the public at a broader spectrum and convenience. Hence, a single segmentation strategy would not suffice the strategic requirement of Uber. As a result, Uber is recommended to follow three marketing strategies to reach the customer base more effectively. The company would utilise the three suggested segmentation strategies systematically. Uber could anticipate experiencing a synergic outcome from the integrated implementation of proposed segmentation approaches in the business. It would allow the company to sustain the market return while securing the market growth in an uncertain global service sector.
Demographic
The primary segmentation tactic for Uber is demographic. The demographic segmentation is the division of customer base according to age, income, gender, religion, and related aesthetics that specify fundamental characteristics of an individual. Demographic segmentation is compulsory to identify the right set of consumers at a primary level (White, 2019). The segmentation approach allows the organisation to integrate census data, which is essential to address the fundamental questions of economic sciences, namely ‘What’, ‘Where’ and ‘How’ to produce a product or service. The demographic segmentation is primary segregation that Uber would integrate as its market segmentation strategy.
Demographically, Uber would focus on the following aspects while segregating the customer base:
* Gender: Both Males and Females
* Age: 16 years to 60+ years
* Income: From USD1,000 and above
* Religion: Any
* Education: Primary education at minimum to function the smartphone application for understanding the interface and servicescape offered by Uber
The above characteristics of demographic segmentation would mitigate complexities for the company in dividing people into appropriate subgroups. The role of demographic segmentation is critical to support the other two strategies in the latter stages of the market segmentation process. The company would integrate demographic characteristics initially in the marketing plan primarily.
Behavioural
Once Uber fulfils the demographic segmentation of the marketplace, the company would make subsequent progress by dividing the customer further through behavioural segmentation. By definition, behavioural segmentation divides consumers based on the behaviours and activities while making a purchase decision. Unlike demographic segmentation, behavioural segmentation allows the organisation to understand the key activities and response measures of the customers towards the product or service offered in the marketplace. During the process of implementing behavioural segmentation, companies are competent in identifying the attitudes and responses of customers towards propositions made by the competitors in the market (White, 2019). Uber would perform behavioural segmentation to highlight the unique selling propositions (USPs) to the customers for sustaining the actuating element in the servicescape. The segmentation is performed based on the following factors:
* Purchase Frequency: Thrice a week at minimum
* Benefits in Search: Economic travelling, convenience, easy access and excellent servicescape
* User Status: Both first-time and repeated users are entertained with the servicescape
* Buyer Readiness: Both unaware and aware buyers are persuaded to experience the servicescape
The above factors would allow Uber to capture the attention of the customer base holistically from different aspects. Uber caters the need considerations of both new and old customers.
Psychographic
Lastly, Uber would implement the psychographic segmentation for its business model to finalise the customer segment. By definition, psychographic segmentation is a process of distributing the customer base according to lifestyle preferences, interests, activities, and opinions. The psychographic segmentation is becoming prominent in industries that contain intense competition. The approach assists in identifying the consumer motivations while making a purchase decision towards a product or service. Through the psychographic segmentation approach, a brand could quickly develop a persuading message for the marketing plan to influence the buying interests and preferences of the customers from the core (White, 2019). In the case of Uber, the factors involved in psychographic segmentation are:
* Social Class Association: Middle Class, Upper-Middle Class and Upper Class of a society that value service according to the convenience, quality and timesaving attributes
* Lifestyle Preferences: Individuals with the personality traits of exploration, reformation, mainstreaming and aspiration are more likely to experience influence from the service propositions made by Uber
The significance of psychographic segmentation is unmatchable for Uber to sustain the market presence in the uncertain industrial environment. Through the three segmentations, Uber would feel convenient in capitalising the interest and needs of the customers in the proposed servicescape.
Target Market Description
The targeting strategy is a subsequent process once a brand performs the segmentation of the customer base systematically. The targeting strategy focuses on the individual segment. Brands must understand the core motivations and need factors of an individual to value the segmentation of the market. Unlike segmentation, the targeting strategy is based on the preferences and interests of individual customers. Brands should identify the gaps in demand to create a relevant proposition for the customers (White, 2019).
In the case of Uber, the targeting strategy focuses on increasing value for the service by offering convenience and continuous accessibility to the customers in exchange of affordable prices. Uber intends to increase the share of wallet for the customers. As a result, the company follows the targeting strategy of cost-based differentiation. The cost-based distinction fulfils the holistic objective of the business model of Uber. Customers gain affordable access to a quality transportation service while independent contractors enjoy synergized economic value once the services are rendered in the market. The identified targeting strategy for Uber supports the business model and sustains the operational sustainability for the company while offering valued pricing to the customers simultaneously.
Positioning Statement
Brand positioning is a scientific aspect in a marketing plan. A primary definition of brand positioning is the process to design a proposition for securing a distinct place among the mindsets of consumers. Through positioning, a brand would differentiate the image and value for service among the perspectives of individual consumers. Positioning plays a critical role in winning a favourable purchase decision from a customer. In most scenarios, the purchase decision could incur impulsively, and reliable positioning would favour the brand regardless of the competitive propositions made by the competitors (White, 2019).
In the case of Uber, the positioning statement of the brand is “Everyone’s Private Driver”. The report creates a sense of luxury and formal transportation service that Uber promises to deliver at affordable prices. Through the specified positioning statement, Uber is creating a distinction of convincing each customer, regardless of the selected service from the portfolio, feel special and empowered while travelling with Uber. While competitors like Lyft and other players in the market are offering a casual ceremony at affordable prices, Uber’s positioning delivered a psychological luxury to the customers while providing similar amount, which serves as a fundamental differentiation.
Marketing Mix
In the discipline of marketing sciences, the theoretical framework of the marketing mix is a fundamental concept that each product or service must integrate to ensure the efficacy of the presence among the target audiences. The marketing mix is a combination of four essential elements, namely product, price, promotion and place. The features are universally embedded in the e...