Change is the only constant – market segmentation

I was discussing with my friends about the change in the retail industry. After discussing I thought to find what are the new online market segmentation techniques and I found some interesting articles like Pokemon Go effect. Hence, I thought to share some insights on online market segmentation.

Signs of customers “skating away from old-fashioned way of shopping”

1. Shoppers know as much as salespeople

Then: Due to the lack of information, people relied on the salesperson to advise them on what to buy.

Now: Today, shoppers can compare the price, quality, brand of the products online and can decide which website can give the maximum value of their purchase. Example – compared the products according to the price while gathering information from other websites.

Now, such kind of websites will not be gathering information only from one demography or does not depend on gender, age, because of the global market, there is a need for further segmentation. (Thefind Inc. was overtaken by Facebook in 2015 because of excellent customized recommendation of products which was beneficial to Facebook for its improvement in commerce ads)

2. Products can jump off the screen

Then: The internet was fine for researching, but there was no replacement for holding, feeling, inspecting a physical product on a store shelf or showroom floor.

Now: Interactive video, 360 views, gestural controls are just a few of the options bringing products alive on customers’ multiple screens. Example-, invites customers to mix and match frames against their photo. When retailers showcase products online in a unique way, they create opportunities for customers to interact with products on an emotional level.

When consumers emotions are activated, their desire to buy is sparked. Again here, we are only beginning to see the possibilities for more segmentation because of replacement of physically inspecting the product by virtually inspecting it.

3. The ‘Pokemon GO’ effect

In 2016, there was news about the game Pokemon Go on going into retail business.  It can show a gym (which may be called pokegym) or restaurants or a real estate in your location using geolocation technology. I also think it will use our behavior for shopping, eating from our location and can provide ads according to it. Such, apps or games can totally change the conventional segmentation of demography because it will be used everywhere and can identify customers behavior and can segment the products for an individual in any location.

Let’s end the article by discussing what will be the common among people who are using this websites by considering the Pokemon Go effect.

The game is built on your location. Suppose a person goes to an Indian restuarant for the meal on a particular date, and some days later the same person is playing the game on a meal time. It is possible that through geolocation, the game may take the person to the nearest Indian restuarant to catch a pokemon. It may lead that person to eat the meal in an Indian restaurant again. Now this segmentation is dependent on the behavior of the individual, time of playing the game, his location. Hence, the market segmentation will be dependent upon a combination of many things and not only on a single segmentation related to conventional age, gender, geography or income.


Future insights – of Google

I have been studying an online course on marketing and was suppose to do an assignment containing PEST and SWOT analysis for Google in next 10 year. Rather than just getting a grade, I thought why not to share this with others. I hope you all find this interesting.

PEST Analysis:

  1. Political Factors

According to the newspaper, “The Guardian”, Google spends $18m per year lobbying in Washington DC. Donald Trump attacks Google’s fellow tech giant Amazon for its connection that Google and Facebook should be regulated as utilities, but Google will only increase its lobbying expenditure. In June 2017, during the antitrust investigation in Europe, Google was fined $2.7 billion. Google is facing serious criticism but still, Google will extend its commitment with Alphabet Inc. which was made five years ago.

Donald Trump also supports Paypal billionaire Peter Thiel, who says, “They lie to protect themselves. They know that bragging about their great monopoly invites being audited, scrutinized and attacked. Since they very much want their monopoly profits to continue unmolested, they tend to do whatever they can to conceal their monopoly – usually by exaggerating the power of their (non-existent) competition.” It is hard to speculate, but due to increasing awareness in the minds of people for online privacy, trust from competitors, it seems like Google can face more political oppose in next 10 years.

  1. Economical Factors

Alphabet has collected a large sum of the amount of cash, which makes it very vulnerable to inflation. A sudden drop in the value of a currency could reduce the company’s value.

A large amount of money Google keeps overseas makes it very vulnerable to exchange rates and the currency market. If the dollar is strong, Google could lose a lot of money if it is forced to bring a lot of cash back into the United States. The company could also lose money if the dollar is weak because it could be forced to exchange a stronger currency for a weak dollar. Whatever the case may be, Google has to walk on the edge of a sword at least for next ten years.

  1. Social Factors

In next ten years, people are going to be more aware of their privacy. Due lack of trust on Google many people are moving to other search engines. I have started using Duck Duck Go to avoid useless notifications from Google on my phone.

Google has not been able to translate its success in traditional search to other segments of the market, including the shopping search. Due to more companies getting involved in shopping search, Google does not stand a chance in next ten years to flip the situation.

  1. Technological Factors

Growing sophistication of social media solutions and instant messaging. Solutions like WhatsApp and Facebook Messenger can now be used to send news, audio messages and even streaming video. Programs like Venmo and WeChat can be used to make financial transactions. This provides an alternative to Google’s products that is not computer based.The technological factor will accelerate in coming ten years and Google will not be able to compete with such a huge traffic.

Over the years it has often been suggested in different places all over the globe that advertising in public spaces should be banned. Here is an example of this from the UK:

Let’s assume such a thing would be the case for Google. In other words: that a global community would agree to ban advertising on all existing search-engines on the globe.

Let’s make a SWOT-analysis of Google in such a situation compared to other existing search-engine named Duck Duck Go. It is quite easier to distinguish the Google SWOT analysis with a single search engine.


  1. Strengths
  • Google has so-called market monopoly in present
  • Strong economy
  • Introduction in Android and mobile technologies
  • Strong technology like google maps
  1. Weaknesses
  • No privacy for users compared to DDG, history can be traced easily in Google
  • High reliance on Advertisement
  1. Opportunities
  • More development in Android operating system is possible
  • Diversification in Google books, Google Maps, cloud computing
  • Penetrate markets with consumer electronics
  1. Threats
  • Existing search engines give high level of privacy and Ad-free search
  • High reliance on Advertisement- a ban will cause economic fall down i.e 85% of its revenue from Ads will vanish


The First Blog

This is my first blog. The reason behind starting the blog is to communicate with people and share knowledge. As a student of mechanical engineering I will share information about Welding Engineering.