The paper "Ethics of Segmentation, Internal, External and Customer Environments" is an outstanding example of a marketing assignment. All the factors within the business that affects its operations constitute its internal environment. These comprise factors such as employees, organizational culture, and management, among others. For example, the effectiveness of employees with regard to their motivation, talents, skills and hard work is a vital internal environment in ensuring there is higher organizational performance. Similarly, the leadership of the management team may impact on the effectiveness of communication within a firm. On the other hand, the external environment relates to all those factors outside a firm and which the firm has no control.
For example government legislation, taxes, technology, competition, social-economic, and political factors. For example, competition is a critical external environment of a firm in that any firm must ensure that it analyses its rivals well in order to survive in the industry. In competition analysis, a SWOT analysis should be applied where a firm assesses its strengths, weaknesses and the opportunities and threats it faces in the industry. Similarly, socio-economic factors comprise issues such as the attitudes, values, and concerns of customers of an organization and their economic purchasing power to buy its products. The customer environment involves internal and external customers.
Internal customers are generally employee colleagues within an organization. For example, an employee from the Procurement department may be a customer to an employee in the Finance department when he seeks some service from the latter. On the other hand, the external customer is a customer who buys goods or services from a firm. Q2. Sustainable competitive advantage This is a long-term competitive benefit to a certain firm that cannot be easily copied by its rivals.
It is a competitive advantage that occurs when an organization attains or develops an aspect of a number of aspects which allows it to outdo its rivals. Such aspects may include effective customer loyalty programs, access to highly skilled human resources, access to natural resources, strategic location, excellent customer service, or have some knowledge on how to produce something unique. Sustainable competitive advantage can be looked at from Resource-Based View of the firm where four criteria are considered: are the resources of value?
are they scarce? are they hard to imitate? and are they hard to substitute? All these criteria have to be met for a firm to have a sustainable competitive advantage. For example, McDonald’ s has multiple sources for its supplies and this has enabled it to consistently offer cheap meals and has nice facilities and excellent customer service. On the other hand, Starbucks Coffee selects strategic locations for establishing new stores. They establish stores near each other and this makes the storefront sell the company.
For this reason, there is little that Starbuck spends in its media campaign such as advertising. Q3. Ethics of Segmentation Ethics is a branch of philosophy that deals with what is right or wrong to do. Market segmentation relates to a way of categorizing the customers into smaller groups called segments, each having common features. When customers are grouped into various segments, unethical practices do occur. This is because segmentation is a form of selective marketing that may be used to discourage the demand resulting from what could be referred to as undesirable market segments.
For example, unethical issues may occur when there are attitudes towards ethnic minority or the gay in the industry. In other words, it can be argued that segmentation discriminates against some groups of people. When segmenting the markets, some segments may be offered items with cheaper prices and other high prices or even differences in product range depending on the seller’ s perception about the market characteristics. Further, the distribution channels may be designed in such a way that some segments get the products with ease while others encounter difficulties in accessing the products.
For this reason, it can be argued that segmentation should be carried out in a way that every consumer is served equitable and conveniently to avoid unethical issues but also in a way that everyone’ s needs are served well.