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Target market and market segmentation
Target market and market segmentation
Target market and market segmentation
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Developing a Marketing Strategy for Robotic Lawn Mower
“There is only one winning strategy. It is to carefully define the target market and direct a superior offering to that target market,” said marketing consultant and professor, Philip Kotler. In order to establish his self-propelled robotic lawn mower, the entrepreneur must figure out his target market and what benefits those customers seek so he can position his innovation in that target market. In order to develop a marketing strategy for the robotic lawn mower, the entrepreneur needs to use market segmentation and target marketing to define the target market and create an effective positioning strategy. Although there are many ways in which a market can be segmented, the entrepreneur would benefit from demographic and behavioral segmentation. Within these two categories, income segmentation and benefit segmentation, respectively, would be the most helpful.
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Therefore, it can divide the middle class market into single women, male adults, and male teenages, and develop a differentiated market strategy with separate offerings for each segment. The single women target market is attractive to the entrepreneur because most women, even in modern days, do not like to do hard labor. The company can then advertise to these women by empowering them, and showing them that they do not need a man to take care of their lawn. In contrast, adult males like to feel like they can take care of their house, and letting a machine do it may be difficult for some of them. However, most adult males today love technology, thus the entrepreneur can appeal to their ego and position the robotic lawn mower as a tool every man should have. Lastly, the entrepreneur can target teenages who are forced to mow the lawn as a chore. Having in mind that a robot may do their work, teenage boys will encourage their parents to purchase the robotic lawn
Own a few acres of land? Well, then you may need a riding lawnmower to trim that incessant grass. Don't settle for normal lawnmowers if you realize they're not efficient enough, making you walk a few acres every weeks to cut your grass. Rather, stick with the riding lawnmower, which you can comfortably sit on and see your lawn magically clean itself up before your eyes. Just make sure that you have enough money to spend on a riding lawnmower, because they tend to be far more expensive than regular push mowers (to approximate, nearly two to five times as much). Also keep in mind that the bigger the deck size is, (eg. 42 in.), the larger the blade size is and the quicker you can get done with mowing your lawn. Getting the right riding lawnmower
Segmentation variables can be classified into four major classes; geographic, demographic, psychographic and behavioural. The use of these categories either individually or in combination assists companies to identify and establish market segments which is relevant to the product or service they are offering. This in turn helps these organisations to evaluate the relevant segments to choose the pertinent target market.
If your grandparents had a reel lawn mower, you might still suffer from nightmares that feature the effort it took to use that life-sucking beast. Not only was it hard to push, but it was egregiously heavy as well! Mowing the lawn required strength, time, and unsurprisingly, tons of expletives.
Segmentation, Target Markets, and Positioning. ANALYSIS: Apply segmentation concepts to your product/firm. How can the market for your product/service be segmented (geographically, demographically, psychographically, and buying situations)? Who are the firm’s current customers (i.e., target market)? Make a detailed profile of the current customers using the segmentation variables.
Segmentation and Target Market Proper marketing management is one of the major determinants of business success. Amongst the methods of marketing management, segmentation, target marketing, and positioning are of utmost importance. Market segmentation deals with the identification of the market constituents into different groups or segments based on specific profiles (Kotler and Keller, 2012). Target marketing deals with the selection of segments and development of the measures to attract the selected consumer groups (Kotler and Keller, 2012).
Creating value for both customers and companies need some marketing research and some processes related with market segmentation.For making a effective and useful market segmentation,there will be some steps and some concepts that has to be known. The companies have to pay attention segmenting their products and entering a new market.Because of that, the company takes into consideration the all process of the market segmentation such as target marketing, segmenting consumer markets, segmenting business markets, segmenting international markets, brand value relations with customer value , benefits and disadvantages of segmentation.
Market segmentation is process dived market in to different groups of buyers those who has different needs, characteristic, behaviour those have required different product. There are four different types of variable use for the segmentation; these are demographic, geographic, psychographic behavioural and variables. Demographic variables are consumers divided in two different segments such as age, material status, family size, income, occupation, education level etc. Second one is geographic, consumers divided into different segments of geographical units such as nation regions, states and cites, etc. third one is psychographic variables consumers divided into different segments based on their lifestyle social classes and personality etc. fourth and last one is behavioural variable which is consumers are divided into different segments based on attitude, knowledge,response of the product and service
1. Discuss the strengths and weaknesses of John Deere’s Achieving Excellence Program. Consider and discuss other criteria to include in the analysis.
Segmentation is a marketing strategy. By definition, segmentation pertains to the process of dividing or splitting a broad target market into various subgroups based on so-called market segments particularly by categorizing them according to common needs, wants, and priorities and based on the likelihood of exhibiting similar purchase behavior (Burkard, 2013). It is important to note that the segmentation of a broad target market does not happen abruptly. Book authors Michael Wedel and Wagner A. Kamakura (2000, pp. 4-5) mentioned that segmentation should satisfy six criteria to include identifiability, substantiality, accessibility, stability, responsiveness, and actionability. The purpose of these criteria is not only to define a market segment but also make sure that such remains...
Market Segmentation What is Segmentation? Market segmentation is the practice of dividing a market into identifiable groups of customers with common characteristics and motivations. This is so that each group can be treated independantly, tailoring the marketing mix to meet the needs of each segment. Furthermore, opportunities for new products and any niche markets are highlighted.
Segmentation will allow you to better develop and market your products because there will be a more precise match between the product and each segment's needs and wants. (http://study.com/academy/lesson/psychographic-segmentation-in-marketing-definition-examples-quiz.html).
Market segmentation is the process of identifying a group of people similar in one way or more ways based on a variety of characteristics and behaviours. The goal is to identify these groups of people with similar behaviours so that product packaging adjustments or communication strategies can be adapted to meet their specific needs, thereby increasing the possibilities of sale to this target group (Blackwell, D’Souza, Taghian, Miniard & Engel, 2006). There is no single way to segment a market however the main variables that might be used to structure the market is geographic segmentation, demographic segmentation, psychographic segmentation and behavioural segmentation. Geographic segmentation is dividing a market into different geographical units such as nations, regions, states, municipalities, cities or neighbourhoods (Kotler, Burton, Deans, Brown & Armstrong, 2013). Demographic segmentation is dividing the market into groups based age, gender, income, education, nationality, family life cycle and occupation. Psychographic segmentation is dividing a market into different groups based on social class, lifestyle or personality characteristics and behavioural segmentation is a form of segmentation based on consumer reactions to a product after it is available in the ma...
The first step is market segmentation. According to Cravens and Piercy (2009), segmenting markets is a foundation for superior performance and it is important to understand buyer’s needs and wants in designing marketing strategy. It is a process of placing the buyers in a product-market into subgroups and it needs to be considered early in the development of marketing-driven strategy (Cravens & Piercy, 2009). Besides that, Cravens and Piercy also stated that segmentation is a recognized process targeted at finding subgroups of buyers within total market. Dickson and Ginter (1987) claimed that “the opportunity for segmentation occurs when differences in buyers’ demand functions allow market demand to be divided into segments, each with a distinct demand function” (pp. 1-10). Moreover, Kotler and Armstrong (2012) maintained that there are four major segmentation variables for customer markets which are geographic segmentation, demographic segmentation, psychographic segmentation and behavioral segmentation. Coincidently, in Dickson and Ginter’s (2009) and Kotler and Armstrong’s (2012) study, the requirement for an effective segmentation must be actionable, substantial and benefit, identifiab...
According to Kotler et al 2013 market segmentation is defined as dividing a market into smaller segments of buyers with distinct needs, characteristics or behaviours that might require separate marketing strategies or mixes. As per the industry data which we were operating we used different theories to segment the market one of them is STP process. In this method whole market is sub divided into different segments based on three activities these are segmentation, targeting and positioning. From the market information in case study we identified similar groups of consumer under market segmentation activity. For example market E had consumers travelling between mini hub to medium city that had a new and growing market. While targeting the market we identified which group of consumers to aim for instance market D had major university and service sectors. Lastly in the product and brand positioning we created a concept so as to appeal the target market by running as discount airline. One of the approaches for market segmentation according to Kotler et...
To get an approach to the unknown market in order to design the marketing mix the segmentation of the market is the primary step. There are three main different ways to segment the market; geographically, demographically and psychographically.