Marketing and Market Segmentation Essay

Submitted By Jazmin22
Words: 1008
Pages: 5

Strategizing in large and small/medium-sized organizations: Similarities and Differences
Strategizing is an essential role that an organization performs. If an organization does not strategize, the organization will fail and not succeed. It is the movement of the organization, without it your company will not start on the right path. Strategies are the main function organizations set, to have a vision, a direction the organization is set to go and have a thought-out plan. Strategies differ between small to large organizations and maintain several similarities as well. The similarities between the large and small organizations are each organization no matter the size, will always try to be the best in their industry. They focus on their products, and customers in addition to how to differentiate and price their goods and how much to segment a market and how broad a variety of products to increase. There are two types of strategies managers use in the large and small organizations: differentiate a product or low-priced products. Differentiation gives any company a competitive lead, creating new products to satisfy customers’ requirements. If a company differentiates their products, they can charge a premium price for their products than their competitors offer. A low-priced product often allows the managers to increase efficiency and dependability to diminish costs for instance a cost leadership. A cost leadership strategy has lower costs and will be profitable than its competitors. It leads to a competitive gain to charge a lower price due to lower cost structure. This strategy appeals to additional consumers which cause to increase sales and profits to flow. Another strategy is market segmentation. Market segmentation helps an organization to better comprehend the desires of a specific consumer base. There are three approaches to market segmentation as stated in the Strategic Management Theory book: “no market segmentation, high market segmentation and focused market segmentation” (Charles W.L Hill). The first one is no market segmentation: the item for consumption is aimed at the standard consumer. The consumer responsiveness is on a bare minimum, and competitive lead is accomplished in the course of low cost, not differentiation. The second approach is the high market segmentation: it is different manufactured goods that are proposed to every market segment. The consumer responsiveness is soaring and the merchandise is being custom-made to assemble the detailed requirements of consumers in every group. Competitive lead is achieved through differentiation and not low costs. The last approach is the focused market segmentation: a manufactured good is proposed to one or not many market segments. Competitive gain can be acquired through a focal point on low cost or differentiation. These are the similar strategies that both small and large organizations use. The main and important strategy is passion. Be passionate on what you are doing and how hard you will work to make your company succeed. If you fail once, you get up and try again until you know which strategy will work best and correct what you are doing wrong. Hiring the correct personnel will also help the company stay afloat and having the same values and mission as you do for the organization to be successful in the present and future. Next, are the differences between the large and small organizations. The management differs between the large and small organizations. In smaller businesses they are fewer managers than larger organizations. You get to wear more hats since it is a small company and exposes you to diverse occupation functions. The working conditions seem better in smaller organizations due to less rules and flexibility in work hours and life balance. In large businesses they hire and fire personnel as they please, by offering many interviews to select the right candidate to get the job done. In small organizations their strategy is different