The paper “ Online Market Segmentation Challenges and Available Viable Online Market Segmentation Alternatives” is a meaty variant of research proposal on marketing. The global economy is drifting its operations from the traditional market structures to the new structures and infrastructure. Traditionally, customers purchased their products from physical business platforms. In this case, visiting physical stores and physical purchases was a common market practice. This as evidenced by Merrilees (2001, p. 178) in a study to evaluate the marketing structures in the traditional market set up. In this case, the market faced increased marketing challenges in its operations such as distribution.
However, the existing market structures at the time allowed for increased market segmentation efficiency. In this case, the markets were segmented based on demographics and earnings as well as geographical locations. Consequently, physical retail outlets such as the clothes outlets had definite market segments to serve in their respective markets allowing for the application of marketing strategy mix issues such as the discriminatory pricing policies s as well as specific product features provision. However, technology development has altered these structures. In this regard, technological developments in marketing and other operational processes have resulted in the adoption of an online business platform in the global market.
Although the traditional business platform allowed for segmentation, it created market challenges in distribution as well as increased business transactional costs. Consequently, it led to the production and availability of high-cost products in the market. Therefore, business organizations seeking to establish an alternative through which such markets would increase their profitability with sustained production processes and procedures, and alternative presented by technology developments (Galbraith, Ehrlich and DeNoble, 2006, p.
675). The introduction of an online business platform where customers would purchase and book products online allowed for increased market profitability through considerably reduce the costs of doing business. In this regard, the market availed products at reduced costs as compared to the traditional physical distribution platform. However, this has led to the emergence of a new business challenge in market segmentation. Shaw (2011, p. 257) in a study to evaluate segmentation established that the market faces increased challenges due to the lack of enough customer profiling and definite structures to allow for segregation that forms the basis of market segmentation. In this case, the study established that the online platform does not provide ample avenues through which customer profiles can be established for efficient segmentation.
Therefore, this research focuses on investigating the concept of market segmentation under the online business platform In this regard, the research focus is based on the challenges encountered in the segmentation process, s well as the available alternatives to these challenges. Therefore, the research focuses on creating a framework through which online organizations can base their segmentation process.
As such, the proposed research is an expository study that aims at creating a framework and platform for future research projects into resolving the existing online business market segmentation dilemma. 2.0 Secondary ResearchIn evaluating the possibility and need for the proposed research, this proposal highlights and reflects on a number of past research studies conducted on the topic. In this regard, the study evaluates past studies on the online segmentation topic. As such, it reviews studies elucidating on the concepts of online market segmentation, the associated challenges and the possible merits of such successful segmentation approaches.
Online marketing is anew emerging concept that has attracted a wide range of organizations as well as the consumer base. In this case, Lewer, Gerlich, and Pearson (2006, p. 97) conducted a study to evaluate the growing nature of online marketing. In this regard, the study sought to establish the nature and extent of growth in the market. As such, it sought to establish the level of attractiveness of the new business platform and its implications on the overall implications on the consumer market.
In its analysis, the study developed a research hypothesis that the market was increasingly attractive and had widespread implications on the consumer market trends and behavior. The study adopted a sample case study of issues both in the online and traditional physical market platforms.
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