Market Segmentation : A Larger Market Into Smaller Pieces

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.

There are four criteria that have to be satisfied in order for market segmentation to be effective. A market segment should be identifiable, substantial, accessible and stable. Identifiable, at which there should

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).

Market segmentation is a process of segregating the market into different smaller groups. A market comprises of large number of heterogeneous customer base with distinct tastes and preferences. A marketer needs to classify and segment people into smaller homogeneous groups basis similar characteristics, tastes, preferences, likes, etc. so that they will respond in a similar fashion to a particular product launched for that segment. Thus, market segmentation can be defined as, “the sub-dividing of a market into homogeneous subsets of customers from the

First of all, in no order, I will talk about the various elements of the marketing mix. Price is simply the amount a product is sold. It is the

Market segmentation is the process of dividing a market up into different groups of customers, in order to create different products to meet their specific needs. The most obvious type of segmentation is between customers who buy distinctly different products.

Price, one of four key elements of the market mix, is the most sensitive factors for improving market shares, revenues, profitability and consumers shopping, influencing other marketing mix elements such as product, promotion and place (David, 2008; Laurus, 2008; Net MBA, 2009). Pricing strategy decision-making should be matter of all factors of marketing mix rather than considering prices (Laurus, 2008).

Market segmentation- is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. Because each segment is fairly homogeneous in their needs and attitudes, they are likely to respond similarly to a given marketing strategy. That is, they are likely to have similar feeling and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way, and promoted in a certain way. Broadly, markets can be divided according to a number of general criteria, such as by industry or public versus private sector. Small segments are often termed niche markets or specialty markets. However, all segments fall into either consumer or

Similarly (Tynan and Drayton, 1987) states that the aim of market segmentation is to identify market segments, or individual sets of customers, which would form targets for the company’s future marketing plans. The elements used to separate customers into segments can include: age, gender, occupation, income, life stage, amongst others.

Promotion is one of the key elements to the Marketing Mix and is used by businesses to communicate information about their product in order to meet specific promotional objectives. To effectively promote a product or service, a business must first decide which communication process is best suited to their target market (Palmer, 2004). There are many different communication tools which a business can use, all of which can be classified into one of two promotional categories.

Market segmentation involves grouping various customers into segments who share similar sets of needs and wants, each segment will respond to a different marketing mix strategy through market segmentation a company can more effectively design, price, communicate and deliver its product or services. Some different ways a company can segment its market include the following:

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.

In order for a business to create awareness of its products and convince people to buy them, it needs to do a promotion of the product. This involves communication. The goal of promotion is create awareness to consumers of a certain product in the market. Secondly, to persuade customers to choose their product compared to rival products. Lastly, promotion aims to remind the customers on the importance of buying the product. There are five main types of promotions:

There are ten basic steps in finding unique segments in your customer base. Segmentation can be created by looking at factors such as purchase history, industry, need, and behaviour. B2B International shares their segmentation methodology in this white paper.

Promotion – Promotion means making customers aware about your products and introducing the customers with the benefits which they can get by buying their products. They can do advertisements, direct marketing and sales promotion for the promotion of the product.