Marketing is extremely important in any business. As stated in Mullins & Walker (2010), “marketing involves decisions crucial to the success of every organization, whether large or small, profit or nonprofit, manufacturer, retailer, or service firm. ” (p. 4). In this new economy and web-savvy age that we are living in, companies must be able to have not just a physical place for the organization but a digital space for it as well to compete with their online competitors and to shift themselves into the global market that is accessible, available, marketable and viable in every way from exposure, to selling new products, to being the trail blaze with a product or in a certain region to revenue. In order to make the space and place work is to look over the marketing implications and conduct marketing research segments for the digital and physical locations of any business.
Place (physical) & Space (digital) The physical place of a business can be their only, main or just one of many locations. However, it can’t just be placed anywhere. There are strategic steps that must be taken to ensure that the physical location is a place that is safe, friendly, welcoming and assessable to its targeted market. It must follow the process of marketing, which deals with socializing that has needed activities to give customers and organizations the ability to get what they need and want by exchanging with each other to have a continuous relationship. (Mullins & Walker 2010, p. ).
One can’t happen without the other. The customers need businesses to supply their wants and needs and the businesses need customers to continue to exist and be successful. Companies need a place for their businesses to be conducted in whether it is a local place or a corporate location it is a must. The appearance of an organization can determine the business that they get. If a physical place looks nice that is also a form of marketing that draws customers. If it looks horrible or is in a bad or dangerous place, that will tend to push away customers or never receive their business at all.
The digital space is something that is very important as well to the success of a business in the new-economy age that we are currently in. According to Mullins & Walker (2010), “At the heart of the new economy is the reliance on digital means of transmitting information, some of which is recomposed into goods-CD, books and more. ”(p. 394). The new-economy age allows a business to exist all over the world through the World Wide Web. The digital space deals with the consumer and commercials areas of the internet, wireless phones, and other forms of technology.
Its physical place can be visualized on line but it does not need a location. It can be accessed from anywhere in the world. It allows for businesses to reach customers they will never meet in any location, it makes a company global. According to Mullins & Walker (2010), “The growing market acceptance of the Internet and other new-economy are still enormous. The growing market of acceptance of the Internet and other new-economy technologies and the inherent advantages that they bring suggest that nearly every company needs to examine how it will be affected by and can take advantage of these new technologies. (p. 375). Market Segmentations “The total market for a given product category thus is often fragmented into several distinct market segments.
Each segment contains people who are relatively homogenous in their needs, their wants, and the product benefits they seek, each segment seeks a different set of benefits from the same product category. ” Mullins & Walker (2010) (p. 13). The market segmentation of the physical place deals with the 4 P’s which is place, age, income, sex, occupation, education and race when looking at the demographics.
Psychographic deals with the behavioral descriptions that define markets based on what the consumers do whether it is sports, bicycling, traveling, various hobbies and etc. Behavioral attributes range from the customers’ needs (who needs what), product usage and purchase influence (what types of products they purchase and who buys for homes), Lifestyle (what people purchase based on the life they are living) to organizational behavioral attributes which deals with purchasing structure and the situation under which organizations buy things.
Their behavioral attributes may determine if the location is something they feel comfortable with. Finally there are the geographical segments of marketing, it looks at location. According to Mullins & Walker (2010), “Different locations or regions vary in their sales potential, growth rates, customer needs, cultures, climates, service needs and competitive structures as well as purchase rates for a variety of goods. ” (p. 184). Based on the location, they know where to market and where not to market as to not waste their money by going against big competitors.
This segmentation focuses on both customer and organization and tries to be wise in marketing in locations where customers and clients will likely be than unlikely be because of distance. (Mullins & Walker 2010 p. 184). This can be very crucial when dealing with physical place because location as this point can make or break the business and product or service that is being marketed. On the contrary with digital space, it can be conducted no matter the geographical location, regardless of demographics or psychographics. By business being conducted online it is accessible to anyone at any given time.
This market segmentation would deal with the five step process for choosing the right market segment or segments. According to Mullins & Walker (2010) they are as follows: “Step 1: Select Market-Attractiveness and Competitive-Position Factors, Step 2: Weigh Each Factor, Step 3: Rate Segments on Each Factor, Plot Results on Matrices, Step 4: Project Future Position for Each Segment & Step 5: Choose Segments to Target Allocate Resources. ” (Mullins & Walker 2010 p. 191-195). Customers Moving Between Both Mediums Customers can move between the two effortlessly if they are open to both as well as have internet experience.
On that other hand some people are not internet savvy nor do they trust the internet so they are not open to doing business online. Some customers prefer the physical place and others are just fine with the digital space due to convenience, time, and easier ways of getting things done. Pomerantz & Marchionini (2007) states, “the space may be either physical or virtual” (p. 505). This can be another way that customers can move between both mediums when a business physical location is digital and only uses the physical location as a storage for products that are purchased digitally.
In addition customers being able to move between both mediums can be assisted by the organizations themselves. In PR Newswire, (2010), it stated, “with reliable, transparent and ubiquitous 3G connectivity for the laptop and netbook markets, and we are now expanding to include new market segments,” (p. 7). Gobi expanded their technology to reach new market segments where customers could go to the physical location but also go to the digital space. This may have included customers who only dealt with one aspect before.
According to Mullins & Walker (2010), “some segments of the population are still underrepresented in the Internet population; the long-term prospects for doing business in the new economy are still enormous. ” (p. 375). Use Space or Place ExclusivelyAll market segments do not enjoy shopping at both. As mentioned earlier some people don’t trust purchasing online. Others are not internet literate. Due to the vast difference with individuals the physical place and the digital space is a must for all companies.
Some people can go to the physical location but some are in areas that if it were not for the digital space they would never get the products and the companies would never receive the business. With this in mind some specific market segments must be exclusive. Another thing is that some physical locations may be in an area where it is little parking so they get more online business and some locations are just not a safe or comfortable area. If there is a digital space to get the product it can still be sold, the customer’s need can still be satisfied and the organization still receives revenue and move units.
Food can’t be in a digital space. It must be a physical place where the food can be cooked, purchase, picked up and taken to be consumed. Conclusion Making digital space and physical place both work would be more profitable for any company and beneficial to all kinds of customers whose preferences vary. On the contrary the customers that are able to do both or are comfortable with both really have an advantage. As stated by Mullins & Walker (2010), “But marketers should take heart, for the good news is this: “In the end, e-consumers and e-businesses aren’t so different from traditional buyers and sellers after all. (p. 375).
Jeffrey Pomerantz, & Gary Marchionini. (2007). The digital library as place. Journal of Documentation, 63(4), 505-533. Retrieved March 1, 2011, from ABI/INFORM Global. (Document ID: 1369327991). Qualcomm Connecting New Market Segments with Gobi 3G Technology :- Company Addresses New Opportunities Beyond PCs by Increasing Flexibility for Customers and Expanding Range of Gobi Solutions -. (15 February). PR Newswire,***[pg. 7]***. Retrieved February 27, 2011, from ProQuest Newsstand. (Document ID: 1962372311). Mullin, J. W. , Walker, Jr. , O. C. (2010). Marketing management: A strategic decision making approach (7th ed. ). Boston: McGraw-Hill.