Market Segmentation : A Larger Market Into Smaller Pieces

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The purpose of market segmentation is to divide a larger market into smaller pieces, identifying the prospects that are most likely to purchase the company’s services or products based on more meaningful shared characteristics. Each segment has different needs; it is based on the notion “you can’t please all the people all of the time.” The four bases for segmenting include demographics geographic, psychological and behaviors. The information derived from these variables allow the marketer to create a cluster analysis. This type of analysis forms groups of customers who are similar within the groups with regard to what the group is seeking and who are different across groups in that each group looks for slightly different attributes.…show more content…
The product aspect of the marketing mix refers to any good, service, or idea that can be marketed. This may be a tangible or an intangible. This is also to include the design and packaging of a good, as well as any physical features and any associated services. This combination of elements can be crucial to the product 's success. The product is the central point on which marketing efforts must focus. 5. What are the key considerations of “Price” as a part of the marketing mix? Price is an important determinant of value since it is the single part of the marketing mix that creates revenue, as the others are purely costs. One of the most important considerations for price is understanding what customers perceive as value. Market research can lend insight as to what consumers value as well as what they are willing to pay. Other considerations that may influence price will either fall under the groups of internal factors that may be or external factors. Internal factors include marketing objectives, marketing mix strategy, costs, and other organizational considerations. External factors can include the nature of the market and demand, competition, economy, government, and other environmental factors. 6. What are key factors to consider in the “Promotion” aspect of the marketing mix? Promotion aspect of marketing includes all the activities marketers undertake to inform consumers about their products whilst also encouraging potential customers to buy these

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