Essay on Fundamentals of Marketing Segmentation

• Explain demographics, Geographic’s, psychographics and why companies use these methods to segment the market effectively

Demographic Segmentation fragments the market into categories according to different demographic factors, usually with regards to the wants and needs of multiple consumer groups. The

Define the bases of segmentation used to segment consumer and/or organizational markets (the rows in your grid)

(1)Geographic segmentation is based on geographic location, such as region, state, or city. (2)Demographic segmentation are statistics that describe the population such as age, gender, race, ethnicity, income, education, occupation, social class, life cycle state, and house hold size. (3)Psychographic segmentation are linked closely with demographic includes lifestyles, values, attitudes, interests, and opinions. (4)Behavioral segmentation used to identify clusters of consumers who seek the same product benefits or who use or consume the product in similar fashion (Lascu & Clow, 2012).

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).

While Coke and Pepsi are the major players in the soft drink competition and by far have seen the most success, both have struggled in competition with each other. Recently both companies have introduced

A market segment is a group of consumers sharing similar wants and needs. Fashion companies use different features and consumer responses to segment customer markets (Easey, 2011). They divide the market segment by family size and age variables. Demographic variables help them to differentiate and measure customer needs (Czinkota and Ronkainen, 2012). For instance, Primark segments the market in Western Europe because customers there have different tastes and preferences from those in other parts of Europe (Bradley, 2014).

The pick-me-up 's 'anti-brand brand ' status explains its rapid success, argues Nirmalya Kumar, senior analyst at the London Business School. 'Red Bull has never done anything in a conventional way. It has not used normal advertising, nor marketing. When it sponsors events or sports, it tends to go for minority ones. '

As every customer has unique needs and expectations towards certain products, the ultimate goal of market segmentation is to organize customers into groups which allows targeting of customers with similar needs of and response to the products. The key is to minimize differentiation within each segment

2) Global expansion is an important strength within this industry because consumers around the world have so much to achieve in a world where so many feel that there is “not enough time in a day.” Through consumption of energy drinks, it allows people around the world to fight their body’s desire for rest and provides just enough extra energy to get them through their day. Weaknesses are also very prevalent within this industry: 1) Pricing is a large factor in terms of high consumption rates of energy drinks. Red Bulls are sold at almost double the price of soft-drinks, a small cup of coffee, and other beverages with the same caffeinated abilities. Because of their prices, Red Bull must be sure that they are selling a product that is worth the cost. 2) Energy Drinks are typically focused on younger generations (young adults/athletes) and those that live extremely active lifestyles. This means that there are at least 2 other generations that typically have no interest in consuming the product. 3) Non-organic energy drinks in large consumption can be detrimental to the body causing health issues if not taken in moderation. Many people that use these products consistently can become addicted to the caffeine, leading their body becomes dependent on the extra caffeine and sugars which can

Market Segmentation This document prepared and presented by Business Resource Software, Inc. Market Segmentation The purpose for segmenting a market is to allow your marketing/sales program to focus on the subset of prospects that are "most likely" to purchase your offering. If done properly this will help to insure the highest return for your marketing/sales expenditures.

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.

Red Bull has a large market share in the energy drink market and it is one of the most popular energy drinks in the world, this may help us to increase the demand for the product and maybe develop a new product within the same brand.

Market segmentation is the identification of the specific groups of people based on their common characteristics like age, sex, occupation or even locality or geographic location. Market segmentation is important to marketers since it enables them to be able to attract consumers by advertising in such a way that the advertisement touches on the needs of the consumers thus motivating them to use the product.

Segmentation is dividing market into smaller groups according to a criterion like their needs, wealth, or locations. Main aim while segmenting consumers is matching each group’s needs and wants with exact products. Basic criterions of market segmentation are geographic, demographic, psychographic and behavioral attitudes.