Market Analysis : Market Segmentation Essay

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

By using Marketing strategy, organizations concentrate their resources on the greatest opportunities to increase sales and maintain a competitive advantage in its market (Wickipedia, pg1).Market segmentation is the process companies use to divide their market into groups of buyers and establish marketing tailored to individual groups. Market targeting is the process of actually choosing the market which poses the greatest profitability. Positioning involves product placement and helps marketers highlight their product over a competitor. The

• Market Segmenting- is known for targeting potential customers that are the best matches for services and products. This type of tool is important to businesses because it involves finding the different needs that exist with consumers. For example, some consumers prefer a fast paced environment while others are concerned with the space.

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

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).

(B) We used a combination of three market segmentation variables using two different approaches. We chose these variables because we feel that they are the best choices for differentiating between market segments. The first thing we did was use the Geographic approach to limit our scope. Using the Regional variable to divide Canada into provinces, we decided to limit our market to that of Newfoundland and Labrador; as a new start-up, it makes sense to begin small with a familiar market with the potential for growth. Then, using Market Density, we determined that since almost 40% of Newfoundland and Labrador’s population lives in St. John’s (196,965 out of 514,540), we would limit our market to that of the Avalon Peninsula, with potential for

Demographics can be used for any business and help an organisation target its consumers more accurately. The market segmentation is split up into age, race, gender, family size, ethnicity, income, and education. The table below shows the demographics of the local area against Australia.

Market segmentation strategy involves dividing the market into different groups and how a market is segmented is based on certain variables. A Company must identify the parts of the market it can serve best in order to reach their specific target market as well as to achieve the maximum profitability. According to Prof. Dr. Christian Schuhart, several criteria used for different market segmentation include: demographical, socio-economical, psychographic and observable behavior segmentation.

Using the geographic segmentation approach, they have divided the market into two segments rural and urban, of which they serve the urban. Behavioral segmentation divides the market according to attitudes, they have located themselves at strategic positions and provided ambience in the restaurant to satisfy different temperaments of people. In employing psychographic segmentation, they have divided the market on the basis of lifestyle preferences. In using price segmentation, they have divided the market in lines of luxury, economy, and value.

The marketing segmentation concept allows a company to focus on a specific group of customers that it is best prepared and suited to satisfy. Rather than trying to be all things to all people, selecting a target market enables a company to tailor its offerings to more specific customer needs and preferences (Schewe & Hiam, 1998, p. 200). When a company focuses its efforts and capital (both tangible and intangible) on a more narrowly defined set of needs, it is more likely that the customers will get the product they desire. Companies that use the marketing segmentation concept typically have a more intimate knowledge of the customers they target, and customers usually relate better with companies that understand their interests. As such a relationship is built.

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.

There are five major segmentation strategies that group various customers into segments. Fill (2009) explains that demographic segmentation consists of factors such as age, nationality or level of education. Geographic segmentation is based on the assumption that

‘Market segmentation represents an effort to identify and catergorise groups of customers and countries according to common characteristics’ (Keegan and Green 2016, p.228). For any business, it is crucial that they segment their market accordingly or they will risk forgoing sales opportunities. Fahy and Jobber (2015) identify the objective of market segmentation as distinguishing groups of customers with similar requirements so

Segmentation is defined as ‘the identification of individuals or organisations with similar characteristics that have significant implications for the determination of marketing strategy’. To break this down,