Introduction
Market segments are created by subdividing a target market and afterward arranging the populace according to the major factors that influence their purchase behavior. Sex, age, wealth, ethnicity, career, culture, marital status, and locality are a few of these.
Discussion
Apple is a recognized brand with appeals to individuals all over the world. Apple relies on the technology market segment for its revenue, and personalization makes it simple to target advertisements at specific demographics. People who use the Safari web browser to navigate to an online phone store could be more attracted to Apple products, and they’ll be shown these, as a result, demonstrating how Apple targets its clientele. When consumers can acquire the same service or good from multiple big or small firms, this is referred to as commoditization. Since there is little apparent variation in the quality of commoditized goods, pricing is the only element that matters. Take the example of paint, an industrial (B2B) product that has been introduced into the market by several enterprises as a result of the development of multiple manufacturing techniques that have given rise to a large number of paint brands.
The main goal of product differentiation is to convince the customer to pick one merchandise or brand over the other in a competitive marketplace. It is possible to differentiate products based on their dependability and longevity. For instance, some bulbs are known to last longer than other counterparts, and consumers will choose them due to this fact. Placement and services are two other ways that a company can set itself apart. Local shops can set themselves apart from their relatively large, national competitors by demonstrating the fact that they support the neighborhood by having to hire regionally and procuring their fresh produce and condiments from neighboring farmers and distributors.
Conclusion
Overall, replicating an item and making it mirror others is certainly easier than duplicating the service that comes along with the commodity. Service is unique because it is delivered by persons in a personalized way. Thus, it’s not entirely accurate to say that commoditization hurts firms because many opt to compete based on price instead of on the quality of their products or other distinctive qualities or benefits.