Once the barter system was the simplest form of trading goods. A trade or exchange in goods were done if there were two or more interested in each other’s goods. In business terms, these were consumers. And a business’ main stakeholder is customer.
No customer, no business.
But to whom do you sell to and what? Do a consumer know what they need and differentiate from want? This is where marketing comes into play. Marketing to the entire consumer group is like finding a needle in a haystack!!
So you need an idea, a plan, a focus on specifics.
Marketing via STP- Segmentation, Targeting and Positioning.
Uber Technologies Inc., an on-demand transportation service industry revolutionized the taxi industry.
Uber now actively operates over 400 cities and 50+ countries, yet they own not a single
vehicle of their own. Yet an estimate of over 1 billion connections. Bloomberg Technology (2015) value the car-booking company at $62.5 billion.
This new funding showed Uber’s motive for expanding its segmental market. Bloomber Technologies (2015) also claimed, the company tess food and package delivery in some cities, and is working on self-driving cars for the future.
Uber valued at $62.5 billion
At Uber our mission is to make getting from A to B an effortless experience that complements your daily life.
Uber manages a network of drivers and passengers through a phone application. Uber’s ‘Tap a button, get a ride‘ showcases its simplicity and user-friendly operations. Uber’s customer pays for the distance they cover from start of journey to it’s end. Whereas a taxi generally has fixed rates and other charges.
Uber’s drivers and customers are both treated as target markets. Smartphone users with access to internet are targeted as potential candidates. On one hand people with own cars and the type of cars are considered at drivers. And on the other hand, consumers are those, without cars.
Uber here ensures a variety of vehicles pertaining to the needs and demands of the consumer. This ranging from economy viable uberTAXI to UberX luxury segment. Uber shows how they react to feedback, demographic popularity and flexibility according to choice. UberPOOL for sustainability.
Uber also has turned their attention to uberEATS where they deliver food and a B2B registrations with restaurants. UberRUSH in New York ensures quick and cheap parcel delivery with live tracking.
- Driver and passenger information such as phone number and address confidentiality.
- Payment info security for both
- Travel insurance for customers while availing service
- Smartphone user-friendly application
- Flexibility of working hours.
- Weekly payment of commission.
Efficiency is High Priority
Market Targeting strategy employed is by offering discounts, coupons, promotions, journey credit, etc.
UberEATS partnership, business profile with Auto-Expense (Bills availble for reimbursement) and price promotions for consumers as customers; drivers receive vehicle finance, health care incentives, etc. Uber ensures lasting customer relationships and launches new methods to cater to the ones yet to be reached. Uber’s mode of variety shows how the company adopted ensuring multiple products for 1 segment.
Positioning can be explained my marketing 4Ps.
Product: transportation service industry
Price: Surge pricing; when more users present, the rates go higher compared to when lesser users as passengers are available.
Place: This can be understood from the geographic segmentation criteria. Uber tends to focus more into metropolitan cities due to its increased population and higher chance of drivers and passengers demand for luxury transportation.
Promotion: Uber promotes its awareness by word-of-mouth, adjoining with sevrices like google, Hilton, Microsoft Oulook and other industries like restaurants (UberEATS).
The marketing strategy adopted by Uber is very single segment basis and the tend to ensure all possible demographics in the segment are looked into with detail and customer feedback and simplicity being their highest priority.
For further info: Uber’s Business Model Slide by Jeffry Funk
*/Uber being a sensation has celebrities reviewing them and thus being an open source of mrketing (Jimmy Kimmel the Uber Driver)/*
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