Introduction:
Market Segmentation:
Market segmentation is the process of dividing the market into parts that are different from one another. It is the identification of potential customers who would buy your products. Different customers have different needs and it is not possible to satisfy these needs by treating all customers in a similar way. Most organisations do not have all the resources to satisfy the needs of all the customers. Therefore, it is necessary to identify the similar groups of customers and to serve one or two group with the available resources. When market segmentation is done well the members in each segment of the market are as similar to each other as possible inside a segment and are also as different as possible
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For example, sports products are used by people having a sports personality.
Behavioural segmentation: Behavioural segmentation refers to the purpose of a consumer buying a product or service. It is simply the benefit a customer seeks from a product he/she buys. Every customer looks for different benefits from different products. For example, a customer could seek various benefits from toothpaste purchased. Some buy it for teeth whitening, some for gum care, some to control tartar, some to freshen breath. Hence, the marketer needs to understand and segment the benefit sought by each customer. Some more examples of behavioural segmentation include, airlines divided into first class, business class and economy class. Similarly restaurants have non-smoking seating as well as smoking seating. Based on these factors appropriate marketing mixes can be developed. There is another variable under the behavioural segmentation which is occasion. This determines the need for the product on the right time or occasion. For example, Christmas trees have the maximum demand during Christmas. Also the rate of usage of a product is another important variable. It divides the users into light, medium and heavy users. The marketers must aim to attract the heavy users as they provide most of the business.
Targeting:
Targeting is the second stage of the
What Is Market Segmentation? Market segmentation is a way of dividing the market into groups of consumers/customers which share similar features
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.
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).
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
Market segmentation is usually regarded as one of the main elements of marketing, with benefit segmentation commonly referred to as the most meaningful form of segmentation. Even though the importance of segmentation is broadly accepted, limited research, do exist about cosmetic medical products (Mohr, Sengupta, & Slater 2010, 79). There are very few real examples of segmentation studies available. This article has focused on Johnson and Johnson products marketing strategy globally. The spread of global culture is normally facilitated by the rise of global capitalism, the proliferation of transitional corporations, homogenization of global consumption, and widespread aspiration for material possessions. International market researchers have discussed the breadth of convergence of cultural values across countries.
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.
Behavioral segmentation are particular behaviors based on the customer’s interests such as loyalty, customer’s interests and values. According to Perreault, Cannon & McCarthy (2015), “specific behaviors wary a great deal for different people, products, and purchase
Customers in groups sharing particular wants or needs are known as market segmentation. Marketing segmentation divides the whole market of the company into segments which are targeted, using developed methods and on products so as to make basis for the company’s product in market.
Market segmentation was to dividing a market into distinct groups of buyers with different needs, charactistics or behaviour who might require separate products or marketing mixes, the company will first
What are the weaknesses of mass marketing, as opposed to segmented marketing? What advantages does a company gain from market segmentation, as opposed to treating the market as single entity?
‘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
Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations. Its important as it allow a business to precisely reach a consumer with specific needs and wants. There are several thing of market segmentation such as demographic segmentation, geographic segmentation, psychographic segmentation.
The process of communicating the value of a product or service to customers, for the main purpose of selling that product or service is known as marketing. The science of choosing target markets through market segmentation and analysis, and understanding consumer behavior while providing superior customer value to the customers is termed as Marketing Management. It can be looked at as one of the most important of the organizational functions and a set of processes for creating, communicating and delivering the value to their customers or potential customers, and a customer relationship management that benefits the organization in a variety of ways.
There are millions of consumer all around the world with different needs and wants (Kotler & Armstrong 2001). It is impossible for companies to design a marketing mix that would suite every consumer’s needs, that will say that the same product, with the same price, place and promotion technique would appeal to every consumers. Marketing segmentation is important in order for a company’s marketing strategy to work properly (Weinstein 1994, Gunter & Furnham 1992). This is because old traditional class patterns no longer exist and consumers have more income to spend. Thus it is important to divide consumers into segments that are more manageable and based on the needs of the segments. This enables the further development of the product to the right