A.

MARKET STP STRATEGY

Google is not only popular in its home country, it is also a major internet search
provider in many large online markets, often generating over 80% of desktop search traffic.
Among of the countries that Google has dominated the search engine was Russia. During
November 20 and as of November 2021, google was the leading market share in the country
followed by Yandex, Mail.ru, Bing, Yahoo and DuckduckGo.
Fig 60
ure
1.
50

40

30

20

10

0
GOOGLE YANDEX MAIL.RU BING YAHOO DUCKDUCKGO

Distribution of the search engine traffic in Russia from November 2020- November 2021.

A.1 Market Description

The Global domination of Google was through its unique marketing strategy that is bound
within a large scale of group of people and wide range of locations. One of the fundamental
principles of marketing is the segmentation of the market. Segmentation means the splitting
of the market into groups of end users who are:
1. Maximum similarity within each group
2. Maximum difference between groups.
Based on recent Marketing definitions, Demographic, Geographical and Behavioral
Segmentation are the definitions that best represent Google’s current Segmentation Strategy
in Russia. .

Table 1.1 Detailed Market Description of Google’s targeted segments.

CUSTOMER PROFILE

 Highly diverse users, as internet is a

Geographic Dimensions highly diverse tool.
 More than half of the Google search
results are delivered outside of the
United States.•Google search results can
be delivered in 80 different languages.

Demographic dimension  Maximum popular users are under age

35•55% of users are male.
 Majority Google users are upper middle

Psycho graphic Dimensions
Organizational Customers
Behavioral Dimensions
Table 1.2 Detailed Market Description of Google Market in Different Segments.
CUSTOMER PROFILE
Student Segment
class income structure.
 Users are generally of higher educated
or technologically competitive.
 Most Google users are business minded
professionals.
 People who are intelligent and educated
need access to information from any
internet enabled devices anytime quickly
are more Google users.
 20% of Google users use Mac
computers which denotes mostly
middle upper or upper income
groups are associated in the
Google customer base.
 Also Google users have highest
(80%) smartphone penetration which
is far more than its competitors like
Yahoo (58%) and Bing (65%).
 Google earns the revenue from its
advertisers based on how many users
click on those advertisements in one
word AdWords. Google also allow other
website publishers to display Google
related ads using AdSense which
generates revenue for the publishers and
Google, both.
 Google has taken part in Internet base
businesses as well.
 Google business solution applications
are less expensive than other similar
applications like Lotus Notes.
 Most of the google users are those
sought benefits such as those who stay
updated to find information in an
efficient manner.
 Undergraduate (18-25) and graduate
(23-30) students who are relatively
young are tend to find more information
fast and efficiently in a more
technological way, in which they are
accustomed to.
 This segment uses the internet for leisure
as well as for education. This segment
has a need for easily accessible
documents like Google Docs to share,
edit or submit documents and other
scholar works
  Lots of new business may be
Entrepreneurial Enterprise Segment entrepreneurial or corporations want an
internet based, hassle free way to
conduct its operations that is cost
effective. This segment needs to reach
their customers through personalized
internet base advertisements (AdWords).
 This segment understands the
technological lifestyle and truly value
efficiency.
 This is the most lucrative customer
segment for Google as; businesses tend
to target Google due to its various types
of users in different segments and user
traffic in different applications.
 They use Google products usually for
Income Group leisure purpose, communication or
entertainment. They are the frequent
internet users. This is a technologically
proficient segment and tends to more
internet shopping and desire to having
nice products.

A.2 Demographic Segmentation

Demographic segmentation is a marketplace segmentation approach in which

an organization's goal marketplace is segmented primarily based totally on
demographic variables such as age, gender, education, income.
The records below indicates the demographic records of Russia and
represented Google’s targeted segment.

Table 1.3 Population of main Cities in Russia

City Population
Moscow 12,480,500
Saint Petersburg 5,398,100
Novosibirsk 1,625,700
Yekaterinburg 1,493,800
Kazan 1,257,400
Nizhny Novgorod 1,252,300
Chelyabinsk 1,196,700
Samara 1,156,700
Omsk 1,154,500
Rostov-on-Don 1,138,000
Ufa 1,128,800
Table 1.4 Distribution of the Population By Age Bracket in %

Under 5: 5.4%
6 to 14: 9.6%
16 to 24: 14.4%
25 to 69: 60.7%
Over 70: 9.9%
Over 80: 3.0%

Table 1.5 Age of the Population- Life Expectancy in Years

Men: 68.2

Women: 78.2

Maximum users of Google are under age of 35 compromising over 80% of the
population in Russia. Mostly are teenagers and still studying.Google has variety of services
that provides educational services such as google classroom, google docs, google scholar and
other services that attracts these target customers to use google as their search engine.They
use Google products usually for leisure purpose, communication or entertainment. They are
the frequent internet users. Google should continuously focus in this segment since this
customer group would contribute most to the company’s bottom line.
With demographic targeting in Google Ads, they reached a wide range in
demographic areas and attracted potential and frequent customers.

A.3 Geographic Market Segmentation

Geographic segmentation is a marketing strategy used to target a product or service to

people who live or shop in a particular location. It works on the principle that people in the
area have similar needs, desires, and cultural considerations. One of Google's services is
Google Cloud which allows users to create and host applications on the same system where
they run Google applications. It's easy to manage without worrying about hardware, patches,
or backups. It is especially available to people in the same area. It supports the diversification
of rural and urban economies and strengthens the role of individual economies.
Google services also provide mapping and navigation application for desktop and
mobile devices from Google. It provides destination services such as directions, location
services,3d satellite photos as well as transportation information. It is accessible by people in
different regions.

A.4 Behavioural Segmentation

Behavior segmentation is the process of sorting and grouping customers based on

their behavior. These behaviors include the types of products and content they consume.
One of Google's most popular services was its search engine. Designed with clean
and simple interference that allows anyone to select or browse selected content or queries.
The process is simple and easy for anyone to access without complexity. There are many
navigation areas where anyone can access the information they want and allowing them to
post their comments and suggestions.. There are also services that allow qualified people to
make money. Google has integrated a new data protection declaration. This allows you to
limit the collection of data about you with your consent.

A.5 Target Marketing

After segmenting the market based on the different groups and classes, Google have
the following target customers:

Table 1.6 Google’s Target Marketing

Type of Segmentation Google target customer segment

segmentation criteria
Geographic Density
Urban and  rural

Age Anyone older than 12 years old and under 35

  Demographic
Gender Males & Females
  Occupation Students, employees, professionals

Benefits sought Staying updated, finding information, efficiency, recreation,

  Behavioural
Personality Easygoing, determined and ambitious
User status non-users, potential users, first-time users and regular users

A.6 Market Positioning

Positioning is about the customer perception about the brand as being different from the other
brands on specific dimension including product attributes.

The strategies adopted by Google to position itself in the search engine market are as
follows:

Table 1.7 Google’s Market Positioning

 Positioning Description

1. Multi-segment The company offers a wide range of products and services such as
positioning Search, Android, Maps, Chrome, YouTube, Google Play, and
Gmail that target multiple customer segments. These segments are
the Geographical, Demographic and Behavioural segment.

2. Organizing the world’s The various products and services provided by Google allows
information positioning people to learn more about the world. Help people get things done
including business and school work.
It helps people in many ways.

3. Imitative positioning Google imitate Internet Explorer and facebook by launching

google chrome to continuously provide wide range of services for
its target segments.

4. Standby positioning The products such as robotics still have no clear target customer
targets but is awaiting changes in the growing market for future
demand.

Google's Marketing Mix (4P’s)

The 4Ps of marketing is a model used by Google to enhance and develop their
marketing mix. Google’s 4p’s presented below are the combination of a wide array of product
lines, suitable pricing strategies for different industries and markets, and ubiquitous product
distribution, along with cost-effective promotions to expand its services and retain their
position as the leading search engine in Russia.

Chromecast Urban and Rural Areas with large

Google Docs number of populations ( Mascow,
Petersburg
Youtube and
Google Chromebooks Novosibirsk)
Google Translate

PLACE
PRODUCT

PRICE
PROMOTION
Freemium Online Advertising
Market Oriented Pricing
Penetration pricing Free trials
 Figure 2: Google’s 4P’s in Russia

The following brands, product and services are available and accessible in Russia.
These products are unique and dominant from the other competitors such as Yandex, Yahoo,
Mail.ru and bling.

 Google Docs - is the online version of Microsoft office and would benefit online
workers.
 Chromecast is a family of dongles for a television, connecting to the TV's HDMI port to
add smart functions to TV. Chromecast connects people to their home network and can
then be controlled with their smartphone.
 Youtube-  is the world's largest video-sharing and streaming platform, is connected with
Google.
 Google Chromebooks- is Google's own computer. It is lighter than regular laptops.
Chromebooks have its unique operating system is 'Google Chrome OS
 Google Translate: Google translation, Google's web-based application that provides
translation with many language options. Although other site has translations. Google
translate has greater advantage since it ha more that 80 languages and it was proven that
it was a better translator than Yandex.

Google has different pricing strategies which include:

 Freemium- the product is offered free of charge but the additional premiums and features
are charged. Google Docs, Youtube, Google translate are the example of products that
have this pricing strategy.
 Market Oriented Pricing- Prices according to market conditions. Chromebooks is the
product that has this pricing strategy
 Penetration Pricing- Includes low prices to earn market share. For example: Google fiber
internet and Google cable television service. An example of this is the Chromecast.

References:
https://www.statista.com/statistics/1094920/leading-search-engines-by-visits-share-russia/
https://santandertrade.com/en/portal/analyse-markets/russia/reaching-the-consumers
https://research-methodology.net/alphabet-google-segmentation-targeting-and-positioning/