What is market segmentation?
In today’s business world, there is no doubt that consumer’s play an important and vital part in driving markets to a more successful turnover. However, many organizations and companies have realized they cannot appeal to buyers in the same way as they are too diverse and each buyer varies in their needs and purchasing performances. Marketing, by itself, has passed through two stages; mass marketing and target marketing. Mass marketing refers to the management of the market as a uniform group and offering the same marketing mix to all customers. Nevertheless, the inconveniences of mass marketing involve ignoring other consumers’ needs and preferences and only offering one specific product to the consumers. If firms continue to disregard the differing customer needs, another firm is likely to enter the market with a product that targets a wider range of customers from varies groups and thus, leading the previous firm to lose their existing customers.
On the other hand, target marketing has taken differing customer needs into serious consideration hence; identifying market segments and produces the best suited product for each target market accordingly. Target marketing not only helps sellers find their marketing opportunities more efficiently; it also helps in satisfying consumers’ needs and directing them to a suitable market according to the spending preferences. Thus, market segmentation is a necessary process in subdividing markets into different segments of promising consumers with comparable characteristics who are most likely to display similar needs. Market segmentation has no doubt emerged as a primary marketing planning mechanism and the foundation for effective overall strategy formulation...
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...www.justmeandmy.com/the-7-p-of-marketing-and-link-building-for-seo - Answer for Question 3 in essay
http://www.ibisworld.com.au/industry/default.aspx?indid=117
http://www.oppapers.com/subjects/australia-wine-industry-page1.html
http://www.cosmosmagazine.com/features/online/3421/in-search-perfect-wine?page=0
http://www.southaustralia.biz/Investing-in-SA/Industry-Profiles/Wine.aspx ** KEY RESOURCE - SOUTH AUSTRALIA
http://www.theaustralian.com.au/business/grange-defies-wine-industry-hangover/story-e6frg8zx-1225858119273
http://www.winebiz.com.au/search/?zoom_query=market+segmentation+in+wine+industry ** WINE DATABASE
the advertiser article Tuesday, may 18, 2010 – grape harvest down 12pc
http://www.adf.org.au/downloads/APC_Marketing_and_Advertising_Policy_Statement.pdf - alcohol marketing policy
http://www.decisionanalyst.com/publ_art/MarketSegmentation.dai
Market research provides information to help unravel marketing obstacles that businesses face in today’s business climate, an essential part of the business planning process. As shown in the example certain strategies such as segmentation or differentiation are almost unattainable without relevant market research.
According to Peter Doyle (2006) market segmentation means, in the most easy way, dividing market. Segmentation is defined as the process by which a large mass of customers are classified into segments with the same preferences with common needs and similar requirements of buyers ( businessdictioary.uk). Regarding Coca-Cola, the company addresses more people who have a very busy life and who need extra energy. In this category we include athletes, students, students, professionals, businessmen, people aged 15-35.
Segmentation, targeting and positioning are the fundament of modern marketing (Proctor, 2002, p. 188, as cited in Harris and Schaefer, 2015).
“A market segment consists of a group of customers who share a similar set of needs and wants. The marketer’s task is to identify the appropriate number and nature of market segment and decide ...
Another important micro trend would be the Consumer. Throughout the process of Marketing, the main emphasis always falls onto the consumers as they are the most important actors in the company’s microenvironment. The entire aim of the marketing process targets the consumers need and aims to forge a sound relationship with them (Kotler et all, 2010). Masters must focus on generating commitment and trust from its consumers. These attributes ultimately result in loyalty, and therefore are a strategic goal and a sure source of profitability in the long run (Miquel, Caplliure, and Adame, 2014). The success of marketing warfare has lessened at the retail level due to the rise of independent consumers. They are not in a state to be “controll...
First, we will analyze the targeted customer and the proposition designed by each company to attract them. In this part, there is a description of each market target and how each company has taken advantage of each unique position in the industry.
Caroline and Jennifer said that ‘Market segmentation is a crucial marketing strategy. Its aim is to identify and delineate market segments or set of buyers which would then become targets for the company’s marketing plans.’ (Tynan and Drayton, 1987) There are many ways to segment the market, such as age, region, environment, psychology and wages (Hall, Jones and Raffo, 2010).
Dickson, P. R., & Ginter, J. L. (1987). Market segmentation, product differentiation, and marketing strategy. Journal of Marketing, 51(2(April 1987)), 1-10. Retrieved from http://www.jstor.org/stable/1251125
Marketing is a process of determining a consumer’s needs, devising a product or service to satisfy those needs, and trying to focus customers on the goods and services you are offering. Marketing is extremely important, and a fundamental building block for business growth. A marketing team is given the task of creating customer awareness through a variety of different marketing techniques. If a business does not pay close attention to their consumer demographic and needs, they will eventually fail over time. Two important aspects of marketing include acquiring new customers, and the preservation and growth of relationships with current customers. Marketing has always been viewed as a creative outlet, which encompassed advertising, distribution, and the selling of goods and services. Marketing staff will also try to anticipate what customers will want in the future, often being accomplished with market research. In summation, a good marketing plan should be able to create a favorable proposition or series of benefits that a customer can value through goods or services. The marketing mix is normally described as the strategic positioning of a product or service in the marketplace, using the specification of the four Ps. During the early 1960’s, Professor E. Jerome McCarthy of Harvard Business School stated that a marketing mix contains four elements. The four key points are product, pricing, promotion, and placement. It is recognized that all these aspects must be present to ensure a successful business model within a given industry. We will now take a thorough look at the four marketing mix points.
With the rise of the economy, consumers have become more and more knowledgeable on selecting their favourable product as a result the organization cannot focus on what it sells but on the side focus on what the customer wants to buy.
To be a successful business, the owner of the business should use the marketing mix and the results of market research; having identified its key audience a company has to ensure a marketing mix is created that is targeted specifically to those people. The marketing mix is a term used to describe the four main marketing tools, Price, Product, Promotion and Place (EStartup business blog, 2010). An example of each 4P’s are: which products are well received, what prices consumers are willing to pay, what TV programs, newspapers and advertising consu...
Market segmentation means dividing the market into distinct groups that have common needs and will respond similarly to marketing action. Each segment must be unique, have common needs, and respond in a similar manner to marketing efforts. Target market is the group of potential customer that has been selected by business to focus its marketing efforts towards. This is the group the business wants to sell its products/services to. Positioning refers to the image created in the minds of customer of its product or brand. It is a perception created in the minds of the consumer relative to that of its competitors.
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...
Nevertheless, one of the most important constants among all of us, regardless of our differences, is that, above all, we are buyers. We use or consume on a regular basis food, clothing, shelter, transportation, education, equipment, vacations, necessities, luxuries, services, and even ideas. As consumers, we play an essential role in the health of the economy; local, national and international. The purchase decision we make affect the requirement for basic raw materials, for transportation, for production, for banking; they affect the employment of employees and the growth of resources, the successfulness of some industries and the failure of others. In order to be successful in any business and specifically in today’s dynamic and rapidly evolving marketplace, marketers need to know everything they can about consumers; what they are want, what they are think, how they are work, how they are spend their leisure time. They have to find out the personal and group influences that affect consumer decisions and how these decisions are made. In these days of ever-widening media choices, they need to not only identify their target audiences, but they have to know where and how to reach
As Peter Duckers has put it, "The ultimate aim of all business organisation is - to create a customer". These days, for most products and services, the market belongs to the buyer. The customers e...