Explain Why It Is Important for Marketers to Understand the Concepts of Market Segmentation and Target Marketing. Discuss in Detail Different Methods Market Segmentation and Target Marketing Strategies Available to Use

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EXPLAIN WHY IT IS IMPORTANT FOR MARKETERS TO UNDERSTAND THE CONCEPTS OF MARKET SEGMENTATION AND TARGET MARKETING. DISCUSS IN DETAIL DIFFERENT METHODS MARKET SEGMENTATION AND TARGET MARKETING STRATEGIES AVAILABLE TO USE BY MARKETERS. PROVIDE EXAMPLES TO SUPPORT YOUR ANSWERS ON THE BASIS OF EITHER A SINGLE CASE COMPANY OR SEVERAL COMPANIES FROM ANY INDUSTRY OF YOUR CHOICE.

Table of Contents
TITLE PAGE 1
TABLE OF CONTENTS 2
INTRODUCTION 3
MARKET SEGMENTATION 3
TARGET MARKETING 6
ONLINE NETWORKING SITES 7
CONCLUSION 8
REFERENCE LIST 9 INTRODUCTION
Market segmentation and target marketing are the two key components of marketing strategy. The importance of understanding them cannot be underestimated by the marketers in order to be
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special occasions. Based on the differences in purchase behaviour marketers can recognise the innovator segment of the market – people willing to buy the product soon after launch. The level of brand loyalty is also important, by helping to recognise the shopping habits of the consumers. The next method is created on the basis of usage, dividing users into three groups: heavy users, light users and non-users of a product category. According to Brassington et al. (2006, p.195), “it is generally a better investment to make a concessions in order to cultivate a relationship with a single heavy user than to try a number of light users”. The final variables of Jobber’s (2010) behavioural method are perceptions, beliefs and values of the customers. This is a powerful segmentation method as it allows to group people based on what is important for them in life. Deeply entrenched beliefs and values are fairly consistent and influence behaviour. Pierce (1997) notes another variable - based on relationship-seeking characteristics. Groups looking for a close, long-term relationship with the supplier have been defined as relationship seeker, while short-term preferences of relationships characterize relationship exploiters. Loyal buyers are interested in the long-term relationship at a distance, whereas arm’s length-transaction customers do not look for any kind of relationship apart from getting the best deal. In addition to already described

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