Description And How Segmented Market Segmentation

There has never been a time where product or service marketing is geared to target a specific segment or niche than today. This is a period in history where the most successful companies are those that have identified a specific group of people in the marketplace and designed their products and services to satisfy their particular needs and tastes.

The significance of understanding what a target market is and what targeting marketing is, is essential for an entrepreneur in a sense that they understand what product they have to sell and what service to render. Find problems that require solutions, paint a picture of the customer, who gains the value from your product, examine your market, look deeply into your product or service and evaluate what else is available (Lebof, G. (2011, March)). Be it one that is starting one’s own business; seek innovation and opportunity to expand business. Target marketing is the relevant tool to employ to (Kerr, M.

- Marketing Segmentation: is the process that companies use to divide large heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match

Assessment of basic needs potential – Easier for producers of specialized industrial materials or equipment; More difficult for specialized consumer products.

According to Horner and Swarbrooke (2005: 39), Segmentation may be defined as the process of dividing a whole market into subgroups or segments for marketing management purposes. Market segmentation is the division of the overall market for a service into various categories with common characteristics. In response to different segments, organisations facilitate the available resources to achieve greater efficiency, in order to satisfy specific needs of customers.

What is Market Segmentation? According to Investopedia (n.d), market segmentation is a term used in marketing that refers to the aggregating of a potential buyer into groups, or segments, that share common needs and would respond similarly to a particular action in marketing. By utilizing market segmentation it enables Victoria’s Secret to target different categories of consumers who recognize the full value of certain products and services differently from one another. Furthermore, market segmentation is an extension of market research for the purposes of identifying targeted groups of consumers in order to tailor products and branding in a way that it is attractive to that group. There are three general criteria used to identify different market segments: homogeneity, distinction and reaction (Investopedia, n.d).

Our goal is to supply our customers with quality parts for their tractors and heavy machinery, at affordable prices.

3) Interaction with people who use the part – Mr. Watkins frequently visits the plant floor and talks with the workers to see if there are any concerns with materials. If a need exists, a requisition form is filled out and the purchase will be made. These requests are usually from members of the engineering team and each engineering manager is responsible for forecasting, quality, and controlling cost for his/her specific section.

Falmer currently distributes their specialized products to other businesses at a minimum order size of 5,000 pieces. They have identified approximately nine of their fifty total customers that account for approximately 62% of their business, one of which (Supply Technologies) represents roughly 30% of their total revenue. The majority of Falmer’s customers are in the trucking and automotive industry, with others representing industries such as railcar or hydraulic hose assemblies. Falmer is interested in pursuing customers in other industries as long as their machinery has

Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs and applications

This information is used in many ways, including targeting marketing efforts and in designing the best mix of distribution channels. By better understanding the preferences of high value customers, FAC was able to design marketing programs that increased revenues by 15% in this market segment.

is particularly suitable for general engineering factories which produce components in convenient economic batches and pharmaceutical industries.

Bodie Industrial Supply, Inc is a full service distributor of top line, brand name, new and used certified machine tools, maintenance parts and related equipments for the construction, utility and farming markets. The demand for equipment is relatively cyclical, with Bodies having a slight increase in sales to farming markets in the summer. Bodie’s has seen a huge sales growth increase in 2003-2004 of 72% and 29% in 2004-2005. This is mostly due to an increase in net sales and keeping a constant level of costs of goods sold.

In order to market the product into the market successfully, marketers need to have some marketing strategy to enter the desired market and make profit. Market segmentation is the process of dividing a market into subsets of consumers with common needs or characteristics (Schiffman et al., 2011). Understanding the market size and segmentation is valuable, but the keys to effective targeting is to know just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends ( Berry, 1999).

Market segmentation is an approach used by a company to select their target market and provide data for a marketing plan. “Market segmentation consist of a two-step process; naming broad product markets and segmenting these broad products-markets in order to select target markets and develop suitable marketing mixes” (Perreault, Cannon, & McCarthy, 2014, p.97). There are 4 categories pertaining to market segmentation; behavioral, geographic, demographic, and behavioral.