MARKET SEGMENTATION
Market segmentation is a marketing term referring to the aggregating of prospective buyers into groups, or segments, that have common needs and respond similarly to a marketing action. Market segmentation enables companies to target distinct categories of consumers who perceive the full value of certain products and services differently from one another. Market segmentation is the process of defining the suitability of a submarket for a specific property. Market segmentation is an extension of market research that seeks to identify targeted groups of consumers for tailoring products and branding in a way that is attractive to the group. The objective of market segmentation is to minimize risk to the company by determining
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Demographics
Using demographic parameters is an effective way to segment your target markets. This information includes age, gender, race, location, educational background and more. Think about the types of customers your business is targeting. If you have a regional product, perhaps your customers are in certain cities or states. Your product may be targeted for businesses, individuals or both. As you brainstorm, you'll start to recognize distinct groups forming.
Psychographics
Psychographics analyze your customers' values, personality traits, interests, attitudes and opinions. This information helps you build a clearer persona for each of your groups. Is your customer independent or does she long to feel included? What does she value? If you aren't sure, hiring an outside market research company to run focus groups or conduct research surveys is a fantastic way to gain more insight. Contacting a local business school to help is a less costly
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To target prospects looking for lower prices, you could, for example, offer the same product in simpler packaging or offer a lower price to online buyers. Reduce your costs by stripping out extras, such as quality packaging or discounts to retailers. To charge higher prices, offer customers a service, such as first-class delivery, or distribute the product through retailers that offer a prominent level of personal service to customers.
TARGET MARKET
Target marketing recognizes the diversity of customers. This way of marketing is unique because marketers who use this method try not to appeal to the entire market but to a specific group. Most target markets describe subgroups of people with like characteristics. The overall intent of market segmentation is to identify groups of like customers, prioritize the groups to address, understand their interests and behavior and respond with appropriate marketing strategies that satisfy each chosen segment’s different preferences.
Again, target markets may be demographic, geographic, psychographic or
Figure out the typical customers is the first marketing strategy. Business should find the right customers who would by your product and tailor and focus its marketing effort toward them. Thus, this target market represents the group of customer offering greatest opportunity.
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 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.
Segmentation is the process of identifying different macro-groups of customers (i.e. segments) based on their common characteristics. The process of choosing a target segment, on which to focus marketing activities on, is a process named targeting.
Demographics play a large role in aiding businesses with the adequate information to convince the viewers. The main demographics include gender, age, culture, race, and location. These are just a few of the many areas that help researchers study human behaviors. The research provided by these studies can be very specific to a certain community, age group, or ethnicity. This benefits marketers in their approach to presenting products to the right viewers (Sessom).
A market profile is explain on customers and customer groups in term of the unique characteristics. It gives information about customer target group and what they looks like. It also helps in identify clearly on target customers who interested in the business’s products or services which the business need to focused on target group of customers who suitable for products or services.
Understanding demographic factors such as age, gender, income level, education level, occupations etc., helps to create effective marketing strategies to boost brand loyalty and membership rates to attract more customers
Market segmentation can be defined as the process of subdividing and defining a large homogenous market into a clearly noticeable segments
Demographic segmentation- the type of segmentation used by the marketers is by classifying the consumers into different groups as per their age, religion or gender. Lexus models such as the IS models is ...
“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 ...
Terrell, E. (n.d.). Market Segmentation. (Business Reference Services, Library of Congress). Retrieved April 6, 2014, from http://www.loc.gov/rr/business/marketing/
Once a business has successfully completed segmentation based on the market into various groups the targets will be chosen. As we all know no one unique strategy will be able to appeal to all consumer segments therefore being able to come up with different strategies for specific targets are a vital aspect of marketing.
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).
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...