Market Segmentation – How & Why Essay

10. Conducting a Market Opportunity Analysis (MOA) is the first step in developing a marketing strategy.

A market segment is a sub-set of a market made up of people or organizations sharing with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function (Wikipedia, 2010). Markets

Target groups are divided into different groups base on the location and what is more abundant (“males or females”) that will give the highest profit to the company. Market segmentation is dividing the market in different groups for everyone but in different segment based on every individual’s needs. An example of a business that uses all of these techniques is Walmart that provide different products and satisfies the needs of individuals by dividing the store by segments base on peoples needs and also having their online

Zappos’ primary selling base is shoes, which accounts for about 80% of its business. There are currently about 50,000 varieties of shoes sold in the Zappos store, from brands like Nike, Ugg boots, ALDO Shoes, and Steve Madden heels. They also serve the niche shoe markets, including narrow and wide widths, hard-to-find sizes, American-made shoes, and vegan shoes. In 2004, they launched a second line of high-end shoes called Zappos Couture.

Explain the process of market segmentation and targeting, and the benefits of segmentation and targeting to Clare’s Chocolates. (150 words) Market segmentation is gathering of potential buyers into groups, that have common needs and it will help you to market your products and services effectively. So that you have more understanding how to market your products and

Market segments are group of persons who share the same set of desires and wants. An institution like Adidas wants to make sure they create the appropriate segments for their new product offering. It is their marketing department's responsibility to identify the proper segments and choose the specific target (UK Essay 2015).

(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

The Psychographic segmentation is based on social class, lifestyle, or personality characteristics. This type of segmentation can be viewed as the stylistic restaurant Olive Garden. The marketing strategy behind this restaurant is based upon how customers are as interested in emotional nourishment as they are in physical nourishment. The style of the restaurant invites a consumer to be part of the Italian family. The concept of the restaurant relates to the lifestyles desired by the customer to be part of a family. Lastly, behavioral segmentation is when a market is divided into segments based on consumer knowledge or attitude toward a product. For Darden, a behavioral segmentation would be how often the restaurants are being frequented or used to help determine where a profitable business market should be located.

Relying purely on socio-economic and demographic data only provides a partial glimpse into the needs, preferences and wants of a given target market. Psychographic-based segmentation research is often used for determining how potential customers' self-assignment to groups, unique interests and preferences for retail products and services influence and often predict their purchasing behavior and long-term loyalty (Bearden, Teel, Durand, 1978). Psychographics is the study of how customers assign

Finally, marketers also segment the population by determining the way consumers behave, or psychographic characteristics. The characteristics of this segmentation strategy are “based on consumer needs; on product usage patterns; on more general behavioral patterns, including lifestyle, which often cuts across demographic categories or varies within them; and, in organizational markets, on the structure of firms’ purchasing activities and the types of buying situations they encounter” (Mullins & Walker, 2010, p. 186).

Market segmentation is the division of a market into different groups of customers with distinctly similar needs and products or service requirements (Croft, 1994). Its major purpose is to pull scarce resources and ensure that the elements of the marketing mix, price, distribution trends, products and promotion are premeditated to satisfy the particular needs of the different customer groups. City Grill’s main approaches to market segmentation, could include using the breakdown method where they can view the market as to consist of consumers who are in essence the same, having similar tastes, and so forth. Their duty could only be to identify groups which share particular differences. Alternatively they

Market segmentation is a strategy that involves breaking down a business’s current target market into smaller subsets in order to establish a more defined set of market categories. It is important to first look at the tools available to assist with segmenting the market prior to beginning your segmentation. These tools include the following:

The new marketing strategy will be segmented into these three groups: Geographic, Behavioral and Psychographic. The marketing team will identify who the ideal customers are for each segment and determine which segment is the best course of action to take.

The process of segmenting and profiling allows better decision making to the ones handling markets and its differences. The significance is added to the geographic and other variables which make help differentiate the product in the group of target customers. The differences in consumer preference and behavior are because of the changes in their perception regarding the features of the product, the usage dimensions, purchase readiness and the emotional connection with the brand.

‘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