Summary: A Little Taste Of Texas

Market segmentation as a term came up to describe the concept that all customers are not alike. Because in hospitality industry marketing money and resources are limited, it has to concentrate on specific groups of people, or target market, to avoid waste in time, money and quality. As a result, it’s ensuring the highest returns. [1 pp19] The reasons why segmentation is so important for hospitality industry are – more successful use of marketing money, clearer perceptive of the needs and wants of special customer groups, more effective developing of service, greater correctness in selecting promotional vehicles and techniques. [1 pp173]

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).

Segmentation is one of the most important aspects of a marketing campaign, as targeting the wrong audience may result in a lack of sales or awareness of the product. According to Baines and Fill (2014), segmentation is the division of a market into different customer groups that have similar needs. One can then target a particular group according to its characteristics, for example through demographic or geographic factors. The target segment chosen for the launch of Our/Vodka London is young professionals, predominantly those who live in the London area.

The purpose of this essay is to highlight and describe the marketing segments for the area of Denver, Colorado. To demonstrate the usefulness of this practice, Neilson's PRIZM software we bill used to test the validity of its claims. This tool segments useful demographic information to help target consumers and make commercial exchange that much more manageable. PRIZM has 66 clusters that describe Americans by incorporating demographics, geographical and behavioral data. Many types of industries use this information such as newspapers, banks, political campaigns, retail stores and anyone else looking to refine their marketing approach towards segmentation.

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.

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

Carefully developed market segments help the company to improve their products and services, by knowing their customers need closely and innovate new sectors according to the needs. On the behalf of this segmentation, Company markets the products into different or more than one market, e.g. Diet Coke (Patrick and Thomas, 1992). According to the market and consumer needs, Coca-Cola uses the consumer segmentations to divide the market into different groups: behavioral, psychographic and

Following the segmentation process, a target marketing strategy was implemented to select the most valuable customer segments.

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)

Customers from various existing markets differ from what they needs and wants, behaviors, and locations. With market segmentation, organizations are able to divide the large number of market to smaller and specified segments, thus it can be approached more effective and efficient with the targeted products that are matched to their particular demands (Kotler, 2010).

Segmentation consists on dividing the market into distinct group reflecting different target with homogeneous needs, characteristic or behavior (Armstrong and Kotler, 2005). Before opting for a segmentation strategy it is crucial to consider the attractiveness of the segment, its homogeneity and stability, as well as the accessibility of the target group.

The strategic marketing planning process flows from a mission and vision statement to a selection of target markets, and the formation of a specific marketing mix and positioning objective for each product an organisation will offer. Leading authors like Kotler present the organisation as a value creation and delivery sequence. In its first phrase, choosing the value, the strategist “proceeds to segment the market, select the appropriate market target, and develop the offer’s value positioning. The formula – segmentation, targeting, positioning (STP) – is the essence of strategic marketing.” 1

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.

     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 is important because after that we willit will enable us to define see what kind of strategies could be used to identify and target customers to to achieve a marketing plan objective and create differentiation strategies, involving specific products or product lines depending on the specific demand and attributes of the target segment.