Tata Steel Approach to Stakeholder Engagement and Materiality (Essay Sample)

Market Segmentation Factors
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Market Segmentation Factors
Businesses whether small or large always strive to maximize from the market through segmenting the market. Typically, market segmentation strategies depend micro and macroeconomic factors in the market (Sharma, & Lambert, 2013). As such, for the market segmentation success of Toyota, the firm should consider both micro and macro factors in its market of operation. This paper is going to discuss macro and micro factors which Toyota should consider while developing its market segmentation strategies.
Macro-economic factors
The macroeconomic are factors that Toyota should consider based on the industry its composition and characteristics. The macro factors encompass the location of the Toyota, the size of the business, the product features such as product application, and the enterprise demographic factors (Sharma, & Lambert, 2013). First, Toyota should consider the size of its customer. By considering the size as a factor, Toyota has to target serving the unique large clients and group the customers to allow ease serving by intermediaries. The primary applicable rule of the thumb in the size factor is the 80/20 plan. The strategies defines what a firm should do to make sure that 80% of its sales come from 20% of its customers (Keller, 2016). Through this marketing rule of the thump, Toyota can sell it motor products directly to clients through well-constructed retail outlets in different locations in the world.
Second, Toyota should consider its geographical location. By considering its location, Toyota will know the cultural practices and the communications style to use in a particular area (Keller, 2016). For instance, Toyota can introduce different payment system in the Asian markets and European markets because these two locations have different cultural practices that differentiate marketing methods. Other macroeconomic factors to consider include; the urgency of order delivery, the size of the orders placed, and the loyalty of the customers.
Micro segmentation factors
Micro segmentation factors should be considered to make the organization to get the inner insight into the market and aid in it the implementation of the company’s segmentation strategies. The micro market segment should look at regular customers that exist in the larger macroeconomic environment. As such, the micro-segmentation factors should be based on the daily business operations including attitudes, product prices, distribution and product quality. The below are factors to considered.
First, Toyota should consider its decision-making structure. The company should use a simple decision-making structure to for the suppliers and customers to develop good relationships with its marketing departments (Diamantopoulos, et al., 2014). For instance, the communication strategies should be two way or bi-directional for the customers give their suggestions on the motor products of the Toyota Company, and for the marketers to communicate with suppliers and clients.
Second, Toyota should consider its attitude towards the suppliers and customers. The company should investigate the...