The Concept of Market Segmentation

The Concept of Market Segmentation

The assistant to the Manager of the marketing department of Dyson have

been asked to write a report that describes the concept of market

segmentation with suggestion on how Dyson could segment its markets,

an outline of the new product development process along with

suggestions of how Dyson should apply these stages and concluding with

an explanation of how Dyson can perform their marketing control.

Procedure

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This report is fully based on secondary data, primarily from the

course literature but also other internet based sources.

Findings

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This report will systematically explain the concept of market

segmentation together with examples of how Dyson can segment its

markets. This will be followed by a stage outline of the new product

development process accompanied by my suggestions on how Dyson should

apply these stages. Finally, a descriptive scenario of how Dyson might

control and monitor its performance will follow.

Levels of market segmentation

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Mass marketing

A company using this strategy does not segment the market at all; it

offers the same product and uses the same promotion for all consumers.

This method has often been used by companies with mass production of

convenience products or by companies with few or none competitors.

Mass marketing is associated with low promotion costs often reflected

by a low price.

Segment marketing

This involves the process of dividing the market into categories with

different characteristics and needs. By doing this a company can adapt

all their offerings to...

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penetrate these markets more strongly they had decided to wait with

their launch in the US and Asia. However, with the forecasted market

share standards not meeting its target they decided to launch the

washing machine in the US and Asia earlier than planned which turned

out to succeed since in the second quarter of the second year their

revised forecasted market share figures where exceeded.

Bibliography

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Internet

http://www.dyson.com/

http://www.quickmba.com/marketing/market-segmentation/

http://www.examstutor.com/business/resources/studyroom/marketing/market_analysis/8_psychographic_segmentation.php

http://www.tutor2u.net/revision_notes_marketing.asp

Literature

Kotler,P Wong,V Saunders,J Armstrong,G (2005) Principles of marketing

Harlow; Pearson Education Limited