Wednesday, July 31, 2019
Disadvantages of Globalization Essay
Globalization is any companyÃ¢â¬â¢s target. However, it should be noted that globalization has disadvantages as well as advantages. One of the disadvantages of globalization is the over-standardization of products through global branding. Using Emirate Airline to illustrate this point, globalization will means that their services are standardized which aim to serve all customers. They would lose their uniqueness of the business culture after they go global. Also, the over-globalization will result in the lack of creativity and product diversity. Moreover, globalization can also create diseconomies of scale as not all countries have the same growth and economic cycle. For example, Emirate may operate very well in the Middle East and Europe market but expanding into Asia or America market will reduce their profit. This could be due to difficulties of coordinating activities in those new markets or the culture differences. It is also important to note that globalization will cause de- industrialization and high unemployment in the domestic market Segmentation, Targeting and Positioning Any business can not afford to promote their product in the similar ways using similar strategies. This is because not all products can serve the same requirements and demands. However, it is very important that customers are aware of the brandÃ¢â¬â¢s existence and the unique selling point of the product and brand must be well communicated to the user. Thus, businesses use segmentation, targeting and positioning (STP) to find their customers and target them so that they can promote their product in the most efficient way. The first step of product promotion or even when product is just at its research stage is segmentation. Segmentation is the division of a broad market in smaller categories consisting of individuals with the similar characteristics. These individuals tend to show similar thinking and perception towards products and brands. When the market fluctuates or a new identical product is introduced to the market, customers in the same segment usually have the same respond to the market and the product. In a simple word, market segmentation can be called grouping as it group people with similar characteristics and thinking together. In the case of Nokia, market segmentation is very important as it significantly enhance the sales process and the brand image of the firm. Nokia has many different lines of products so segmentation is on crucial process in its operation. Nokia segmentation could be kids, male, female, high income customer, low income customer, young people and etc. Targeting is the next phase of the STP process. Targeting is done after the broad market has been segmented. Targeting involves devising various marketing strategies and promotional schemes according to the preferences of the different segments. Targeting is important as it could help an organization to reduce unnecessary promotion cost and also boost sale results of the product. As in the case of Nokia, they create phone for almost every segment so targeting them to the right segment will boost their sale results. For example, the Nokia cheaper line such as Nokia 1100, 1200, 1208 are aimed at people with lower income or as a secondary phone. On the other hand, Nokia 8800 is aimed at successful business man and their new smart phones are aim at young, middle income people. Positioning is the last stage of the STP process. After a company has done the market segmentation and targeting, it will work hard to create a good impression of its products in the target customersÃ¢â¬â¢ perception. Product positioning is what customers believe about the productÃ¢â¬â¢s value, features and benefits. It is important that the customers have a good perception over the product at the beginning stage of positioning otherwise, the product success will be quite challenging. By getting it right, positioning helps organization to create a good perception of the products in the minds of target audience. Using the case of Nokia, after they segment and target their customers, they could improve the product positioning by creating unique point of the product that fits well with the targeted customers. For example, for female target, Nokia could create product in more feminine colors such as white, pink and etc.