15/06/ · Consumer market can be segmented on the following customer characteristics: 1. Geographic Segmentation. 2. Demographic Segmentation 3. Cryptographic Segmentation. MARKET SEGMENTATION essay. Marketsegmentation is the division of customers based on their similarityof needs and wants. By dividing the international markets, companiescan Market segmentation is the division of a market into distinct groups of buyers who might require different products or marketing mixes (Kotler et al, ). It is the division of a heterogeneous
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Order custom essay Market Segmentation Essay with free plagiarism report. There is no use in locating segments that are sizeable market segmentation essay not profitable. Unique needs: To Justify separate offerings, the segments must respond differently to the different marketing mixes. The segments should be relatively stable to minimize the cost of frequent changes. The potential of the segments as well as the effect of a specific marketing mix on them should be measurable. Potential customers are in a local, state, regional or national marketplace segment. If a firm selling a product such as farm equipment, market segmentation essay, geographic location will remain a major factor in segmenting your target markets since their customers are located in particular rural areas.
While for retail market segmentation essay, geographic location of the store is one of the most important considerations, in this ease city areas are preferred. Example: Titan has segmented its product according to different age group of person. B Income dominant factor :-segmentation is done on the basis of income level of a c Purchasing power dominant factor :- Segmentation had done on the basis of purchasing power of the customer. Example of different car segment based on purchasing power. D e f Occupation. Gender dominant factor :-product can be segmented for male and female. Family Size. H Nationality. I Religion. J Education:-primary, High School, Secondary, Market segmentation essay, Universities, market segmentation essay.
H Cryptographic Segmentation: - Cryptographic Segmentation groups customers according to their life-style and buying psychology. Many businesses offer products based on the attitudes, beliefs and emotions of their target market. The desire for status, enhanced appearance and more money are examples of cryptographic variables. They are the factors that influence your customers' purchasing decision. A market segmentation essay of luxury items would appeal to an individual's desire for status symbols Cryptographic Segmentation includes variables such as:- a. Activities, Interests, and Opinions AI surveys are one tool of measuring lifestyle. Behaviorist's Segmentation: - Markets can be segmented on the basis of buyer behavior as well. Since all Segmentation is in a way related to buyer behavior, market segmentation essay, one might be tempted to ask why buyer behavior-based segmentation should be a separate method.
It is because there is some distinction between buyer's characteristics that are reflected by their geographic, demographic and cryptographic profiles, and their buying behavior. When segmentation attains high sophistication, customers and companies can choose each other and stay together. Market Segmentation Market segmentation is a two-step process of: naming broad product markets, and segmenting those markets in order to select market segmentation essay markets. Most segmentation efforts fail because inexperienced marketers attempt to find one or two demographic characteristics to segment a mass market. Generally, customer needs and behaviors do not fit nicely into one or two demographic characteristics. This section of the report will outline Best Practices related to segmenting your various product markets.
A market is a group of potential customers who have similar needs and are willing to arches goods or services to satisfy those needs. Good marketers focus on the customer and develop marketing mixes for very specific target markets. On the other hand, poor marketers focus on their products when defining markets, leading to missed opportunities and questionable customer satisfaction. The point here is that a market is external to an organization; it doesn't make sense to segment potential markets based on the features contained in your products or services. When narrowing down the mass market, it is helpful to think of two basic types of markets: generic markets and product markets. A generic market is a market of customers with generally similar market segmentation essay, which organizations satisfy in a variety of ways.
An example of a generic market would be the transportation market for a city; buses, market segmentation essay, trains, cars, bicycles, and walking, are all methods of getting around town. Contrastingly, a product market is a market of customers with very similar needs. An example of a product market would be for laptop computers, market segmentation essay, where customers have the choice between products from Microsoft, Dell, Apple, Fajitas, market segmentation essay, etc. When evaluating potential market opportunities, market segmentation essay, look for a definition that is broader than our firm's current product market, market segmentation essay, but not so broad that your firm could not handle the demand if it were market segmentation essay. Work to establish a slightly broader definition for your current product markets.
When defining your product market, there are four important aspects: An example of a market segmentation essay market might be "marketing advisory services market segmentation essay mid-sized enterprises in North America with limited budgets. Understand Common Market Segment Dimensions There are common market segment dimensions for consumer and BIB markets. Following are two short lists containing sample dimensions that can be used to slice and dice your consumer or BIB product markets. Be very careful when selecting your dimensions, as these parameters will form the basis for defining your target markets.
Note: the following lists are meant to provide examples that will stimulate your thinking of applicable dimension. There are thousands of variables that could be used for this exercise, so be sure to carefully select the right dimensions for your market, market segmentation essay. Using a Customer Relationship Management CRM database system can assist with clustering customers with similar needs, buying patterns, or other relevant characteristics. We market segmentation essay encourage you to conduct surveys and to aggregate your survey data using our Market Segmentation Tool. Group Customers into Homogeneous Supermarkets In this stage of the segmentation process, your goal is market segmentation essay find customers who have similar needs that will respond to a marketing mix in a predictable manner.
Following are 4 criteria that strong market segments have in common: A. Homogeneous - customers in a market segment should be very similar in both their segment dimensions and their likely response to a marketing mix. s possible with other segments. the segment needs to be large enough, or predicted to grow sufficiently, to be profitable. Operational - the segment dimensions should be helpful for understanding; identifying customers and making decisions regarding the marketing mix. It is essential that market segments are operational. The whole point of segmenting is to assist with better targeting, positioning, and decision-making; be sure that your segment dimensions are extremely relevant.
Once you have established distinct market segments based on various dimensions, you are ready to start targeting your potential customers. Segmentation, Targeting, and Positioning Segmentation, targeting, and positioning together comprise a three stage process. Segmentation involves finding out what kinds of consumers with different needs exist. In the auto market, for example, market segmentation essay, some consumers demand speed and performance, market segmentation essay, while others are much more concerned about roominess and safety. Generically, there are three approaches to marketing. In the undifferentiated strategy, all consumers are treated as the same, with firms not making any specific efforts to satisfy particular groups.
This may work when the product is a standard one where one competitor really can't offer much that another one can't. Usually, this is the case only for commodities. In the concentrated strategy, one firm chooses to focus on one of several segments that exist while leaving other segments to competitors. For example, Southwest Airlines focuses on price sensitive consumers who will forego meals and assigned seating for low prices. In contrast, most airlines follow the differentiated strategy: They offer high priced tickets to those who are inflexible in that they cannot tell in advance when they need to fly market segmentation essay find it impractical to stay over market segmentation essay Saturday. These travelers?
usually business travelers? pay high fares but can only fill the planes up partially. The same airlines then sell some of the remaining seats to more price sensitive customers who market segmentation essay buy two weeks in advance and stay over. In the next step, we decide to target one or more segments. Our choice should generally depend on several factors. First, how well are existing segments served by other manufacturers? It will be more difficult to appeal too segment that is already well served than to one whose needs are not currently being served well. Secondly, how large is the segment, and how can we expect it to grow? Note that a downside to a large, rapidly growing segment is that market segmentation essay tends to attract competition. Thirdly, do we have strengths as a company that will help us appeal particularly to one group of consumers?
Firms may already have an established family friendly food, it would be difficult to convince consumers that McDonald's now offers gourmet food. Thus, Mac's would probably be better off targeting families in search of consistent quality food in nice, market segmentation essay, clean restaurants. Positioning involves implementing our targeting. For example, Apple Computer has chosen to position itself as a maker of user-friendly computers. Thus, Apple has done a lot through its advertising to promote itself, through market segmentation essay intimidating icons, as a computer for "non-geeks. The Visual C software programming language, in contrast, is aimed a "techies. The emphasis here is mostly on low cost, subject to reliable performance, and less value is put on customizing the offering for the specific customer.
Wall-Mart is an example of this discipline. Elaborate logistical designs allow goods to be moved at the market segmentation essay cost, with extensive systems predicting when specific quantities of supplies will be needed. Customer intimate firms, which excel in serving the specific needs of the individual customer well. There is less emphasis on efficiency, market segmentation essay, which is sacrificed for providing more precisely what is wanted by the customer. Reliability is also stressed, market segmentation essay. Nordstrom and IBM are examples of this discipline. Technologically excellent firms, which produce the most advanced products currently available with the latest technology, constantly maintaining leadership in innovation.
These firms, because they work with costly technology that need constant refinement, market segmentation essay, cannot be as efficient as the operationally excellent firms ND often cannot adapt their products as well to the needs of the individual customer. Intel is an example of this discipline. Repositioning involves an attempt to change consumer perceptions of a brand, usually because the existing position that the brand holds has become less attractive. Sears, for example, attempted to reposition itself from a place that offered great sales but unattractive prices the rest of the time to a store that consistently offered "everyday low prices" Repositioning in practice is very difficult to accomplish.
A great deal of money is often needed for advertising and other promotional efforts, ND in many cases, the repositioning fails.
Market Segmentation Why Market Segments Are Important
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6/02/ · Levels of market segmentation: 1. Mass Marketing: providing the same product to all consumers. Example: Salt. Segment marketing: providing different products to many Market Segmentation is the process of dividing the target market into groups of smaller segments using certain parameters in order to understand the customers and target different 16/11/ · Macro segmentation covers a much broader scope and focuses more on aspects going beyond micro marketing scales. The mechanism addresses issues at the nexus link
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