Marketing Exam Preparation for Monash Diploma 2 Students

Market segmentation is specific sections of the market that an organisation is aiming at. In order for an organisation to engage its market segmentation the organisation has to match its products to the customers wants and needs to appeal to the customer to buy the good or service. Market segmentation allows an organisation to have a competitive edge and it is a key factor for the organisation profitability and survival. Company use target marketing which is when a business aims all of its marketing effort to a certain group of customers which is affective as these are the group that spends the most. There are many ways to segment the market to create that certain group such as demographics, psychographic, geographically and lifestyle. Demographics is consists of dividing the market into groups based on variables such as age, income, occupation, religion, race and nationality. Psychographic segmentation is based on social class and lifestyle. Lifestyle is based on knowledge, attitude, their uses and segmentation. Geographic segmentation is the segmentation which divides the market but location, regions, countries and cities. Asos as an organisation is aimed at people of the ages of 15-34 year olds who are very fashion forward and who enjoy the culture of online shopping. In geographical segments Asos has created their website differently for 9

External influences are things that happen every day around you. An external influence could be anything from your parents making a decision to a major action of a group. An example of an external influence would be techonology. We use technology everyday of our lives and it impacts us as people constantly. The things we read online can persuade us to choose one side or the other, Or it could make us think some item we see is nice or cool looking so we have to have, then we buy this item. Technology is somewhat the root to most people's external influences. In the article Talking to Our Devices by the week.com it talks about how the technology we have today is becoming more and more voice activated it also talks about how even though we are becoming more advanced through voice activation, it can be a bad thing

JB HI FI is one of the largest retailer company selling home appliances and all other electronics. Its head quarter located in Melbourne and established in the year 1975. They have overall 180 stores in Australia and New Zealand. The company is targeting 214 stores by the end of 2016. Their name and logo represents the smashing prices in their company. This industry experienced a great growth over past 10 years. They also have a good response for online shopping and this trend is continuously growing these days. The most important aspect for companies is to identify consumers in which to target their product towards. STP model is used for this process and it means segmentation, targeting and positioning. Segmentation is based on characters like behaviour and the lifestyle. JB HI FI’s segmentation is highlighted by location of its stores in urban areas so, that they can target people live in urban areas mostly. This is also known as targeting because they assumed that people live in urban areas are more fond to home appliances. In final stage, that is

Additionally to the Market segmentation, many retailers and businesses use the segmentation as a marketing strategy and a factor when determining such as the location of a store, or the products that are going to be sold. Some of the strategic methods that are well known and utilized by many businesses are the Geographic, Demographic, Psychographic, and the Behavioral segmentation. I will focus more on the Geographic segmentation which creates data from the consumer's zip codes, neighborhood population and household income, and much more. Overall every retailer's focus is to have a successful business, and when doing that you must know who you are targeting and undergo research about those consumers who will be purchasing your products. This

Market segmentation allows marketers to understand customers’ needs and identify target markets (Peter & Donnelly, 2011). Bright Light Innovations will be able to evaluate different segments to determine differential advantages in each of those segments. Furthermore, management will be able to determine any of the particular marketing mix for a more successful strategic plan. Market segmentation can be obtained by researching geographic data (zip code, region, etc), demographic data (age, occupation, nationality, etc), psychographic data (social status, personal type, etc), behavioral data (customer behavior), or any other data that can be beneficial to the research (Kawasaki, 2004).

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

Market segmentation is essential for creating value of the product in the minds of customers and consumers. Market segmentation is the process of dividing the target market into subgroups of people who are homogeneous in respect to their needs and wants. The people in each subgroup are expected to react in similar way towards a product or service (Kumar & Sharma, 1998). A product can be divided into two types; consumer product and industrial product. Market segmentation of consumer products is done on the basis of age, sex, education, income etc. Where, segmentation for industrial products is based on size of the business, location, procedure and purchasing etc. (Bose, 2006). According to Bose (2006) market segmentation is effective when company can reach segments for promotion and distribution, the segment is large enough to generate sufficient profits, buying power of the targeted segment is measurable and there is a noticeable variation in the nature of demand.

Market Analysis is a process that helps to identify and access the key features of a market to have full understanding of customers, competitors, suppliers and so on by using a range of market research techniques. Therefore, by carrying out market analysis, Cielo Sendirian Berhad is able to run more efficiently and effectively. One of the most commonly used market characteristics is market segmentation. Market segmentation refers to subdividing a market of people in groups by categorizing them with different level of purchasing power, gender, religion, different needs and so on. The purpose of segmentation is to concentrate on the needs of different groups to gain an advantage over our competitors. Our company Cielo, is currently focuses on women’s market, who are professionals. Market segmentation that we are going to discuss are geographical segmentation, demographical segmentation and psychographic segmentation.

In order to satisfy all the customers’ preferences and different requirements companies use the segmentation process to identify and satisfythe different customer groups. In mass MARKETING, same strategies and marketing mix can be applied to all the customers where as in target marketing the strategies can be made based on different categories of customers. Thus, targeting market can provide effective results to an organization.

Behavioral segmentation divides the market based on their knowledge, attitudes, uses, or responses to a product. It considers the occasion,

Marketing strategy has very much evolved over the decades. Initially in the early 20th century mass producers had little to no competition in their industries. It was a time when supply and demand was almost as simple as it sounds. The general masses would desire a product and that product would be delivered. An example of this was Ford’s Model T. During this time Americans were in love with cars and a larger percentage of the population could afford them. All Ford had to do was to produce the simple automobile and the cars sold on a large scale. There were few competitors, so the producers did not have much to compete against. This time in history

Creating value for both customers and companies need some marketing research and some processes related with market segmentation.For making a effective and useful market segmentation,there will be some steps and some concepts that has to be known. The companies have to pay attention segmenting their products and entering a new market.Because of that, the company takes into consideration the all process of the market segmentation such as target marketing, segmenting consumer markets, segmenting business markets, segmenting international markets, brand value relations with customer value , benefits and disadvantages of segmentation.

“Marketing is products that don’t come back and consumers that do” (Steve Dawson, President of Walkers Shortbread Inc.)

In market segmented we have seen that their customers and consumers are loyal and strongly affinity to the particular brand or product. As in market segmenting the market is divided into individual markets with similar wants and needs as on the products consumption. Broadly markets can be divided according to a number of general criteria, such as by industry or public versus private. Although there is difference in industrial and consumer market segmentation but both of them have similar objectives.

An organization cannot satisfy all the needs and wants of all the consumers. Therefore, Market is divided into different segments so an organization can focus on the needs and wants of the specific consumers who share similar needs and demonstrate similar buyer behavior. In the world, there are different types of buyers with their own needs and behavior. Segmentation is the process to match groups of the purchasers with same needs and wants.