BUS 620: Managerial Marketing
Professor David Kalicharan
February 13, 2012
Space and Place Marketing Presence
Marketing for many organizations has been evolving aggressively as we move into the digital age. For many years, all that was necessary to market a product or service was to maintain a physical place. Now with the internet, more and more consumers are turning to convenience. Marketing strategies have begun shifting to a digital space presence to survive in today’s market place. This paper will discuss the marketing implications for reaching marketing segments for space and place, as well as the market segmentation when it comes to shopping virtually versus physically. The paper will talk about the transitioning between space and place for customers then give some examples of some popular organizations that have become successful with a space presence.
Marketing Implications for Reaching Market Segments
Whether marketing for a physical place or digital space, the marketing segments are somewhat similar, except for one element... geographic segmentation. Both mediums need to follow the three steps in the market segmentation process. That is to identify a homogeneous segment that differs from others; specify criteria that define the segment; and determine the segment size and potential. By defining these, it makes it easier for both space and place marketing firms to decide which strategies to implement.
The three strategies for segmenting a population are demographic, psychographic and geographic. For both space and place stores, the core to marketing is to understand the demographics of their potential customers. Any marketing firm should consider the dynamics of the changing consumer needs and wants. Marketing firms are usually looking for these specific attributes: age, sex, household life cycle, income, occupation, education, events, and race/ethnic origin. Have it be a physical or spacial presence, considering the demographics is critical.
Geographic segmentation is not as important in the digital presence as it is in a physical store. When it comes to online stores, anyone around the world can be a customer. Therefore, there is no thought that goes into where a store should be erected. When it comes to a brick-and-mortar store, research is needed to find potentially successful locations. For example, the high-end department store Saks Fifth Avenue would not want a location in an area that has a Walmart demographic. “Geographic segmentation is used in both consumer and organizational markets and is particularly important in retailing and many services businesses, where customers are unwilling to travel very far to obtain the goods or services they require” (Mullins & Walker, 2010).
Customers Moving Between Place and Space
The spacial presence of products and services is a relatively new concept that started about 15 years ago. The internet is still evolving as more people find it as a tool to market, sell, and network. There is definitely a generational and economic gap when it comes to the internet. Many adults who did not learn the internet at school have had a hard time adapting with technology, or just don’t care to learn. There are also many households in the world that do not have a computer and/or internet access. It is this demographic that may find it difficult to move from a physical presence to a digital presence.
There are many customers that have internet access and are tech savvy. There are some that utilize the internet to research a product or service online before going to a physical store to make a purchase. Then, there are other customers who go to a store to feel and touch a product before buying it online cheaper.
Virtual shopping is increasing exponentially as consumers are getting lazy, or demanding a more convenient shopping experience with better deals online. "Adoption...