Segmentation: Marketing

6. What are the different ways to segment a consumer market? Does it make sense to use more than one segmentation variable? Why or why not?

They have a very clear strategy for the pursuit of their goal and vision. The market segmentation as well as the identification of target markets is the important element of each marketing strategy at which they are the basis for determining any particular of the marketing mix, which is product, pricing, place and promotion. Market segmentation reveals the company's market segment opportunities. The company has to evaluate the various segments and decide how many and which segments it can serve the best. In evaluating different market segments, a company must consider of three factors, that is, segment size and growth, segment structural attractiveness and also company’s objectives and resources. (Armstrong & Kotler, 2005)

This process helps a firm or organisation in focusing its marketing effort towards a specific segment or a group of segments. Depending on the product, organisational goals, the size of the firm and the marketing resources available a firm may target only one ‘niche’ segment or alternatively focus on several related segments. Another method can be to start with one segment and add more when business grows successfully. Large companies often target all market segments and try to serve them by offering a large variety of products to suit all their needs, wants and demands.

This part of the marketing management Group Project will explain how we can evaluate the attractiveness of identified market segments and why I think our firm should pursue market specialization. I will explain how we can evaluate the attractiveness of identified market segments by identifying and explaining the five key criteria that make a segment plan useful followed by a brief description of how population size, growth rates, and scale of economies can affect profits and of course why we want this venture to be low risk. Next I explain market specialization and discuss why I think it is the most beneficial marketing option. I will begin by explaining how we can evaluate the attractiveness of identified

Market segmentation- is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. Because each segment is fairly homogeneous in their needs and attitudes, they are likely to respond similarly to a given marketing strategy. That is, they are likely to have similar feeling and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way, and promoted in a certain way. Broadly, markets can be divided according to a number of general criteria, such as by industry or public versus private sector. Small segments are often termed niche markets or specialty markets. However, all segments fall into either consumer or

Companies need to understand their customers in order to satisfy their needs and run a successful business. Since all customers are different from each other and therefore might not have the same needs and wants, market segmentation is a key tool in marketing. Market segmentation can be defined as “The process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment.” ( http://www.businessdictionary.com/definition/market-segmentation.html#ixzz3pCQjsWYr)

(3)Market segmentation is the identification of portions of the market that are different from one another. Segmentation allows the firm to better satisfy the needs of its potential customer.

Market Segmentation was introduced by Wendall Smith (Smith, 1956). Benefits of market segmentation include a better and fuller understanding of the market, the ability to predict customer behaviour with more accuracy and an increased chance of detecting potential market opportunities (Kotler and Cox, 1988).

The marketing segmentation concept allows a company to focus on a specific group of customers that it is best prepared and suited to satisfy. Rather than trying to be all things to all people, selecting a target market enables a company to tailor its offerings to more specific customer needs and preferences (Schewe & Hiam, 1998, p. 200). When a company focuses its efforts and capital (both tangible and intangible) on a more narrowly defined set of needs, it is more likely that the customers will get the product they desire. Companies that use the marketing segmentation concept typically have a more intimate knowledge of the customers they target, and customers usually relate better with companies that understand their interests. As such a relationship is built.

Marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs, and then designing and implementing strategies to target their needs and desires using media channels and other touch-points that best allow to reach them.

Companies need to segment their market for different reasons. Before one market 's products or services, one needs to

Market segmentation is an approach used by a company to select their target market and provide data for a marketing plan. “Market segmentation consist of a two-step process; naming broad product markets and segmenting these broad products-markets in order to select target markets and develop suitable marketing mixes” (Perreault, Cannon, & McCarthy, 2014, p.97). There are 4 categories pertaining to market segmentation; behavioral, geographic, demographic, and behavioral.

The market segmentation is where the market has been divided up into groups of consumers who have similar needs; it is when the market is broken down into sub-groups which share the similar characteristics of different levels. It is the divisions of a particular product which is divided into different segments of different levels as the Gender, (Ex: Male and female has 2 sections of similar production of different innovation). It consists of individuals and groups with one or more features that cause them to have relatively similar product needs.

Segmentation is referred to as the procedure of partitioning the market into specific clusters of consumers who in essence share common needs and who might require separate products and marketing mixes. This marketing has become so common that even the organizations that possess mass marketing phenomena are using it (Vaske et al, 2009). The main purpose of using segmentation as a marketing mix strategy is to concentrate marketing force on dividing the available market to segments to gain a competitive advantage within those subdivisions or segments. This subdivision in turn helps the marketer to understand the target market`s demands, needs and wants. Basically, needs are depicted as essential human necessities, for example, food, water, and clothing among others. In essence, needs are the essential aspects in human life, and one cannot do without at all cost. On the other, wants are things that an individual can do without and as for the demands, are described as wants for specific products or services based on the ability of an individual to acquire them. Therefore, segmentation segregates the market into smaller groups of consumers or customers with different needs and behavior who may need marketing mixes. Similarly, segmentation is the single most important aspect of promotion, and it is

In order for the expenditure resources used in segmentation to have value for a company, they must first decide what type of marketing strategy they wish to pursue. There are two major types: a concentration strategy and a multi-segment strategy (Boundless.com, n.d.). A concentration strategy is when a marketing team decides to hone in on a particular market, whereas a multi-segment strategy focuses on two or more separate market segments. Deciding on which one to use is where the fourth step in the market segmentation process comes into play – product positioning. Product positioning, which has little to do with the actual product and much more to do with the consumer perceptions of it. It is possible for two companies to sell essentially the