Company Web Sites: Defining Market Segments & Satisfying the Consumer

In today's world, businesses are faced with a significant challenge. Modern companies must contend with countless competitors around the globe on a daily basis. They must constantly reinvent themselves to show that they have something unique to offer the consumer. As such, everything the business uses to reach the consumer must be carefully thought out and planned to account for the unique qualities of the company, the varying needs and characteristics of individual customers, and the strengths and weaknesses of competitors.

This is especially true of business web sites. Whenever a business develops its web site, it must create a place that will attract people of different characteristics, needs, and interests, while staying true to the essence of the business and showing its advantages over its competitors. One of the most important parts of this process is determining who is most likely to buy the company's products and how the business can best meet these individuals' needs. Let us take a brief look at the web sites of five innovative companies-Apple, Dell, Gateway, Hewlett-Packard, and IBM- to see how they define their market segments and strive to reach the consumer.

Definition of Market Segment

Ultimately, a market segment can be defined as an "identifiable group of individuals, families, firms, or organizations, sharing one or more characteristics or needs in an otherwise homogenous market" (BusinessDictionary.com, 2008). Any number of characteristics (or needs) can define a market segment, such as common problem or the size of a business. However, it must be understood that market segments are not concrete; individual customers might be attracted to various market segments, depending upon the type of purchase (Nowell, 2004). Different groups of customers tend to respond differently (but predictably) to marketing strategies (BusinessDictionary.com, 2008). As a result, understanding the basic needs and mind-set of the various segments helps a company to tailor its marketing and products to attract and satisfy its targeted market segments (those groups of customers most likely to purchase its products) (The Market Segmentation Company, 2008).

Company #1: Apple

Now that we have reviewed market segments, let us examine the web site of one of today's leading competitors in technology, Apple: www.apple.com. The Apple home page has a simple, yet crisp and modern, layout that encourages the customer to explore the clearly marked links. At first glance, it is not obvious which market segments this site targets. The main links on the home page primarily showcase its three well-known products: the Mac, iPod, and iPhone. However, once you click on the Mac link, the bottom of the web page reveals the five markets that Apple targets: (1) creative professionals, (2) education, (3) science, (4) business, and (5) IT professionals.

There are a number of customer benefits stressed on the Apple web site. First, it offers a wide variety of innovative products that are clearly described and organized for the customer. As I mentioned earlier, the Apple home page has three main product links-Mac, iPod, and iPhone-for customers to directly access each of these three famous products (and their accessories) directly. Yet, the shopper also has the option to explore a detailed, categorized list of Apple's entire product line in the online Apple Store. Apple.com also provides a number of useful and entertaining downloads for its customers under the Downloads link on the main home page. Apple then gives a number of links for online support for its specific products and services, as well as other support resources (under Support on its home page).

I believe Apple attempts to connect with the consumer on its web site in a number of ways, such as presenting customers with a the chance to have personal shopping sessions with qualified staff online to give them the type of help and attention they might expect at a traditional store. In conclusion, I feel Apple.com's chief strategic advantage over its competitors' sites is that it truly captures the distinct, innovative products that Apple is now famous for, continuing to place the company in a category all of its own.

Company #2: Dell

Next, let us explore the market strategy of the Dell's web site: www.dell.com. Unlike Apple, Dell's targeted market segments are quite obvious once you log into their home page. Immediately, the customer's attention is drawn by five product photographs, and if the cursor is run over each of these links, a box appears with the following options: (1) home and home offices, (2) small and medium businesses, (3) large businesses, and (4) government, education, healthcare and life sciences. Also, on the far right of the Dell home, there are solutions links for each of these groups.

Now that we understand who Dell is marketing to, what main benefits it is trying to market to these customers? Basically, like Apple, Dell aims to show the consumer that the company has a wide variety of products available online. However, unlike Apple, Dell puts much more emphasis on the accessories and complementary products it sells in addition to its main products (laptops, desktops, and all-in-one computers), showing the customer that Dell.com can meet all his/her needs in one convenient place. Moreover, the Dell home page has a clearly marked support and help link, giving Dell shoppers peace of mind that a wide variety of customer service and help is available online whenever he/she may need it and during any stage of the purchase.

In addition, Dell.com further connects with its shoppers through its Dell Community, which supplies a well of information and connection to other Dell customers and the company through such things as ideas, blogs, forums, and videos. Finally, I feel that what sets the Dell web site above all its competitors is its award-winning web support. Under Dell's support page (News and Alerts), I found that the company has won a number of awards over the years for its remarkable web support, including a spot in the Association of Support Professional's Hall of Fame for winning its annual "Ten Best Web Support Sites" award at least four times in a row.

Company #3: Gateway

The third major competitor I wish to discuss is Gateway: www.gateway.com. Compared to the web sites of Apple and Dell, Gateway took a different approach to choosing its targeted market segments, dividing its customers into two main categories: online shoppers and traditional retail shoppers. The Gateway home has three main product links. Two of these links-Home & Home Office and Great Deals-are designed to attract individuals that are comfortable making technology purchases online, providing a large variety of Gateway products on the site. The third link-Shop Retail Stores-offers a list of authorized Gateway retailers for customers that would much rather have a face-to-face shopping experienced with the assistance of well-trained sales personnel (although the product selection might be more limited since products vary by location).

Gateway also offers the added benefit of extensive online help, support, and customer service immediately through the Support link of its home page. Ultimately, Gateway further shows its appreciation of its different customer needs by recognizing that some individuals would be more comfortable speaking with support and customer service on the telephone than online. Therefore, the company offers both types of support and help on its web site. In the end, I think that Gateway.com's chief strategic advantage over the other four of our major competitors is that Gateway's site directly appeals to both online and traditional customers.

Company #4: Hewlett-Packard

Fourth, let us consider the internet marketing strategy of Hewlett-Packard's web site: www.hp.com. First, Hewlett-Packard has chosen to target five different market segments, similar to Apple and Dell: (1) home & home office, (2) small & medium business, (3) large enterprise business, (4) government, health & education, and (5) graphic arts, offering separate menus on its home page to meet each of these groups' unique needs. Likewise, Hewlett-Packard emphasizes two main benefits for its customers parallel to the previous three companies we discussed: a large variety of computers, accessories, and complementary products and services, as well as an extensive Support and Drivers area to assist its customers online with a wide range of problems and issues.

However, HP.com also highlights another customer benefit: the endless possibilities presented by its products. Through this Explore & Create link on the Hewlett-Packard home, customers can immediately see some of the ways Hewlett-Packard products and HP.com are able to benefit them personally. Ultimately, this area of the web site convinces the consumer that Hewlett-Packard truly understands his/her needs and aspirations and that this company can, in fact, enrich the lives of its customers. Consequently, I am convinced that HP.com's Explore & Create section is the foremost feature that makes HP.com stand out from the other companies' web sites.

Company #5: IBM

Finally, we have IBM's web site: www.ibm.com/us/, which specifically targets a whopping seventeen separate market segments. At the bottom of its home page, this company states "What can IBM do for . . ." industries, government, and K-12 and higher education. And if you click on the Industries link, you will find that this group is divided into 15 subcategories: (1) banking, (2) chemicals & petroleum, (3) consumer products, (4) electronics, (5) energy & utilities, (6) financial markets, (7) healthcare and life sciences, (8) industrial products, (9) insurance, (10) media & entertainment, (11) retail, (12) telecommunications, (13) travel & transportation, (14) wholesale distribution, and (15) medium business industries.

IBM.com offers three main customer benefits on its home page: (1) a wide-ranging line of products from servers to software to semiconductors, (2) solutions and services specifically customized for the different segments, and (3) an organized Support & downloads section that provides an assortment of helpful links, including a Forums & Communities link, so the customer can connect with both other IBM customers and the company itself. In addition to this extensive web support, IBM also attempts to connect with its consumers through such through its various "My IBM" features, which allow the consumer to personalize the web site to further fit the site to his/her needs and interests. After considering all of IBM's helpful features, I believe that this option to personalize the web site is IBM.com's chief strategic advantage.

References:

Apple. (2008). Home page. Retrieved April 14, 2008, from http://www.apple.com/

BusinessDictionary.com. (2008). Definition: Market segment. Retrieved April 15, 2008, from http://www.businessdictionary.com/definition/market-segment.html

Business Resource Software, Inc. (2008). Market segmentation. Retrieved April 15, 2008, from Center for Business Planning Web site: http://www.businessplans.org/Segment.html

Dell. (2008). Home page. Retrieved April 14, 2008, from http://www.dell.com/

Gateway. (2008). Home page. Retrieved April 14, 2008, from http://www.gateway.com/

Hewlett-Packard. (2008). Home page. Retrieved April 14, 2008, from http://www.hp.com/

IBM United States. (n.d.). Home page. Retrieved April 14, 2008, from http://www.ibm.com/us/

The Market Segmentation Company. (2008). Market segmentation. Retrieved April 15, 2008, from http://www.marketsegmentation.co.uk/segmentation_tmsc.htm

Nowell, D. (2004). Defining market segments. Retrieved April 15, 2008, from Sheridan Institute of Technology and Advanced Learning Web site:http://www.sheridanc.on.ca/~nowell/segment/segdefine.htm