IT Today is a startup venture that intends to provide 24/7 customer service to those who deal with newest technological gadgets. It will give technological assistance along with assistance in networking across the globe. This paper will make a situation analysis for the company using certain popular industry analysis tools.
Market Segmentation
There are mainly four types of market segmentation through which a company can identify its customer needs and define its market segments. In the current scenario, it is advisable for ‘IT Today’ to adopt behavioral segmentation to define its market segments. As Goyat (2011) defines, behavioral segmentation is the process of dividing the population on the basis of their behavior, consumption, and decision making pattern. In simpler words, the product/service is marketed considering the behavior of individuals. Market analysts have already recognized that behavioral segmentation is the best option in the smartphone market. Since IT Today is interested in providing technological assistance to the average consumer, it is vital for the company to identify customer segments that are in need of technological support. As the company plans to expand its operations by providing 24/7 services in technological support and networking, the behavioral segmentation strategy can assist the organization to recognize the most potential market segments and thereby enhance its business growth constantly.
Targeting Strategy
Targeting is the process of identifying the attractiveness of market segments and developing appropriate response approaches for them. There are different types of targeting strategies such as differentiated targeting, undifferentiated targeting, and concentrated targeting available for targeting the market segments. In the given context, it seems better for IT Today to rely on the differentiated targeting approach. Under differentiated targeting strategy, a specific marketing mix is set for each market segment (Pride & Ferrell, 2015, p.167). It appears to be the best targeting approach if the company wants to focus on two or more potential market segments and to use different marketing tactics to capture market concentration. As IT Today provides technological assistance in a variety of newest technological gadgets such as smartphones, laptops, and tablets, it is inevitable for the company to use varied promotional messages in different market segments. In addition, differentiated targeting can assist the organization to meet the changing trends in the technological sector in an effective way. According to Armstrong and Kotler (2005, p.224), although this targeting approach involves increased marketing research and promotional strategies, it is beneficial for the organization to respond to consumer needs appropriately.
3. Competitive Analysis
Competitor strengths and weaknesses
Most of the leading competitors of IT Today are well-established players, and hence they have improved access to potential resources such as finance and skilled workforce. However, they have weaker competencies in terms of innovations compared to IT Today.
Internal strengths and weaknesses
The company focuses on a wide range of newest technological gadgets so that it can expand its business easily. However, the company has few background resources to back up and maintain its operations.
Customer needs and wants
Customer needs and wants are fast changing in the technological sector mainly because of the growing number of inventions and innovations in this industry.
Impediments to market competition
Patents, lack of technical know-how, and high start-up costs are recognized to be some of the major impediments to market competition in the technological industry.
Strategic plans
IT Today will be able to dominate the market by investing heavily in R&D because the buying behavior in the technological industry is notably influenced by innovations.
4. SWOT Analysis
Strengths
The major strength of the company is that it focuses on a wide range of newest technological gadgets including smartphones, laptops, tablets, and printers, and hence the business is exposed to a huge market horizon. In addition, the company has a 24/7 business model that is beneficial to meet consumer needs efficiently and uninterruptedly. The organization has strong competencies in networking too.
Weaknesses
The key weakness of this start up is that it has few background resources such as finance and management expertise to maintain its business operations. In addition, the company does not have competitive promotional strategies to communicate its marketing message to the target market segments.
Opportunities
There are immense opportunities emerging in the field of information technology, and this situation adds to the business scope of IT Today. The fast growing smartphone and tablet markets raise a range of potential opportunities for the business. In addition, there has been increasing number of technological inventions and innovations in the IT sector over the last few decades and this trend is promising for the company to improve its market share in the coming years.
Threats
Undoubtedly, the cut-throat competition in the technological sector poses great threats to the IT Today. Since IT Today is a start up business, it would be really a challenging task for the company to vie with existing well-established players in the market. In addition, the fast changing market trends and consumer interests may raise potential threats to this IT start up in the long term.
Conclusion
IT Today is startup company that is planning to expand its market horizon. Considering the current scenario, it is better for the organization to adopt behavioral segmentation strategy and differentiated targeting approach to direct its marketing efforts towards the accomplishment of its long-term business goals.
References
Armstrong, G & Kotler, P. (2005). Marketing: An Introduction. New Delhi: Pearson Education India.
Goyat, S. (2011) The basis of market segmentation: a critical review of literature, European Journal of Business and Management, 3 (9),45-54.
Pride, W & Ferrell, O. C. (2015). Marketing 2016.US: Cengage Learning.
