In order to get the best of a product offering, and sales approach to meet the desired requirements, Devatus Oy segments its customers. It is very common in most service based business, that marketing is based relationships. Existing relationship and trust becomes even more essential when the service involves having access to business secrets. This is one of the reasons that prevent many services based companies from segmenting their market. This notwithstanding, segmentation is an essential element for success especially in the software development industry. Because software services has to be unique to the customer, they cannot be treated like commodities or tangible products. Generic applications could be developed but such applications are not very usable especially when you have a special need. This means that Devatus cannot develop a generic application and put out in the market for every organisation. Should that happen, the application may not suit any specific organisation therefore will be redundant. If the market is segmented, prospects are defined and targeted segments are better fit with a specific offering which are beneficial to their organisations. Under macro segmentation we focus on prospective customers in Finland. This is because Devatus is a small company who wants to grow steadily from its own home before extending to other countries. Because the company is young it has very few staff who are mostly from Finland. It would be easier and less expensive in terms of traveling and use of human resource to focus on areas where employees already know about. We also focus on Companies who have their head offices in Finland. In our opinion this would quicken our response rate from prospect. The assumption is that, ... ... middle of paper ... ...llers. We believe by creating and making available rich content, we would attract our desired customers Here is the breakdown for in segmenting one of our clients: Bothnia Events, It is an event management organisation in Finland and it’s headquarter office is in Vaasa Finland. It is a Medium sized company with turnover more than 400,000 euros per annum. We would segment Bothnia Events under value drivers. Our business application could enable them increase revenue significantly by eliminating the tedious and time consuming process of making countless phone calls, sending multiples written or printed invitations and making posters. An event management application from us would make them work more efficiently and faster. Thus increasing their turnaround time. We could also use a mobile application from use to assist them in announcements and coordinating programmes.
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.
This will help us increase our market share percentage and eventually generate more income in the company.
Many factors should be addressed when defining a target market. These factors include market segmentation, product life cycle, and the four "P's" that make the marketing mix. Market segmentation is the process of dividing a total market into market groups consisting of people who have relatively similar product wants and needs. There are four major segmentation variables: geographic, demographic, psychographic, and behavioral. Geographic segmentation includes world region, country region, city, density, or climate. Demographic segmentation can consist of age, gender, income, occupation, education, race, religion, or nationality. Social class, lifestyle, and personality fall into the psychographic segment. The behavioral segment divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product (Bethel, 2007). Once the market segment is identified, that market can be targeted.
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).
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.
To begin with, it is crucial to appreciate the meaning of segmentation and targeting because these two terms lay the foundation for this report. Consequently, segmentation is dividing a market, into groups of consumers with homogenous traits in order to provide each group with the desired product. What is the meaning of targeting? It is where an enterprise evaluates every segment with an objective of identifying segments with promising business opportunities. Considering the nature of the product in question, it sufficed to mention that liquor- filled chocolates are to be sold to adults.
Segmentation is a procedure of splitting up the market into different groups of consumers who the same common needs and wants. There are different types of segmentation like geographical segmentation, behavioral segmentation, demographic segmentation, lifestyle segmentation. Lexus divided their vehicles into two categories they four wheel drives and two wheel drives.
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...
This model consists nine components in total including customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships and cost structure in a conceptual priority order (Osterwalder 2012) which are belong to four main areas comprising of offerings, customers, infrastructure and financials (Rytkonen & Nenonen 2014). Although both nine are important, this essay will only concentrate to three key characteristics which are customer segments, value propositions and
It’s critical to know your customers as much as possible. The business need to recognize the customer at every contact point, no matter which product line is involved. The business may also want to apply the principles of one-to-one marketing to create better relationships with your channel members and other intermediaries in your demand chain and to always stay in contact with them. The company must be able to gather all the information they can about their current customers, including their buying patterns, likes, and
Segmentation is a marketing strategy that involves separating a wide target market into small groups of customers who share the common need of using or purchasing the product that needs to be marketed. Market segmentation strategies are utilized to identify these groups of consumers and strategies are designed and implemented to make the product or service appeal to them. Support and also the product will be strategically placed in order to successfully achieve the ultimate marketing goal. Businesses and organizations may come up with different type of strategies involving different products and catchy phrases depending on the product or the target segment.
There are many ways to segment the market. Major variables used to segment the
Volterman’s product is unable to meet the need of people from all age group so they need to use market segmentation to meet the customer requirement with the common needs and characteristics. (3) Volterman organization are able to determine exactly who is their targeted market such as
Well, you want to be a resource for your clients and potential clients. Providing your readers and followers with valuable content is a great way to establish a relationship with them and set your brand up as an expert resource to look to when they have questions. It allows you to communicate with your clients without always trying to sell something to them.
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...