This essay explores the idea that the use of e-marketing means that segmentation is no longer relevant.

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Question 4

This essay explores the idea that the use of e-marketing means that segmentation is no longer relevant. This statement is discussed in relation to organisations that use e-marketing to complement traditional marketing strategies and in the context of 1:1 marketing.

It is emphasised that e-marketing is not limited to the internet. Although a number of examples in the essay involve the internet, the same basic principles  apply in relation to the other e-resources an organisation can use.

Traditionally, a firm can choose from 3 different marketing coverages. These are mass marketing, multi-segment marketing and niche marketing (Strauss, 2001). The evidence in the literature is overwhelming that segmentation still has a central role to play. The reasons for this include that segmentation enables an organisation to:

  • group people and organisations with similar needs
  • define marketing objectives
  • allocate resources and evaluation (Study Guide, 2001).

In addition to the 3 traditional marketing coverages, more recently individualised or 1:1 marketing is being used by  organisations. 1:1 marketing involves customising a product offering for individual customers. The very nature of targeting individuals seems to make segmentation no longer relevant. However, it is clear that this is only correct in part and that segmentation still has a significant role to play in 1:1 marketing.

This essay will first discuss segment action in the context of the 3 traditional marketing coverages.

Different ways to segment markets in an e-marketing context include using:

  • cultural differences (Chaffey, 2000)
  • lifestyle-type segmentation. (Bickerton, 1996), (Morgan 2002)
  • behavioural traits (Lewis, 1997)
  • the customer’s stage of the buying decision process (Berthon, 1998)
  • motivational factors (Kotler, 2000)

The table below analyses a car maker’s website and Maslow’s hierarchy of needs that are being targeted.

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The Study guide suggests that the new ‘rules’ for e-marketing in comparison to traditional marketing (Study Guide, 2002), will include:

  • a shift from the seller to the buyer
  • death of distance
  • marketing deconstruction
  • increased interactivity

These new rules will strengthen the need to segment markets as organisations will need to continue to improve their ability to meet customer needs in an increasingly competitive environment in many markets. It could be suggested that the e-marketing environment as a whole will become more segmented over time in this environment.

In terms of 1:1 marketing, Coupey ...

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