Market Segmentation

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To reach different markets or to promote your products to different locations or people one has to use a method called market segmentation. "Market segmentation describes the division of a market into homogenous groups which will respond differently to promotions, communications, advertising and other marketing mix variable" (Cumming). Market segmentation is extremely important for companies around the world. If a company doesn't research the area in which they are going to market or they put a product that is either to expensive or to elaborate in an area that can't afford that then they will fail as a company. In my paper I will discussion why market segmentation is used in around the world, the types of segmentation, some techniques…show more content…
By the year 2000, women will purchase an estimated 60 percent of all new cars (Mariotti). These drastic changes have been noticed by companies around the world and the advertising and promoting departs have geared their add to women, not just men. Income segmentation is dividing a market into different income groups. This type of market has been common to items such as automobiles, boats, clothing, cosmetics, financial services, and travel. Income segmentation can be seen in where specific stores are located, what items are in what magazines, and the price that items are set at depending on the general income of the area. For example …Greyhound Lines, with its expensive nationwide bus network, also targets lower-income consumers. Almost half of its revenues come form people with annual incomes under $15,000 (Mariotti). Psycho graphic segmentation is dividing a market into different groups based on social class, lifestyle, or personality characteristics. People in different segmentations can have very different psychological makeup. Successful markets based on personalities have been on product such as cosmetics, cigarettes, insurance, and liquor. An example of psycho graphic segmentation is Honda's campaign for its motor scooter. "Honda appears to target its Spree, Elite, and Aero motor scooter at hip trendy 22-year-olds" (Cumming). But it is targeted to everyone trying to be hip and trendy in any age group and any gender.
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