The Concept of Market Segmentation Essay

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

Organizations usually employ market segmentation in competitive markets for appropriate targeting of customers. This paper provides an analysis of how market segmentation can be utilized for competitive advantage as well as the need for ensuring diversification for sustainable growth.

Deardorff, J. (2012, January). Fitness: A rare health club beckons the obese. The Charleston Gazette,. Retrieved from http://search.proquest.com.ezproxy.apollolibrary.com/docview/914947863?accountid=458

Many small businesses are able to establish themselves in a niche market segment using this strategy, achieving higher prices than un-differentiated products through specialist expertise or other ways to add value for customers.

Gutierrez, K. (Sept 11, 2014). eLearning vs Classroom Training—How Different Are They? Retrieved from http:/info.shiftelearning.com/blog/bid/354977/eLearning-vs-Classroom-Training-How-Different-Are-They

The marketing strategy will set the tone and direction of the advertising through tone, style, and themes that included messages. Elio has prototypes that have been traveling across North America to stir up the interest of the target market. This visual presence has allowed Elio to take pre-orders and create public interest. It has also allowed Elio to educate the market about the product. The advertising position for Elio is product differentiation and lifestyle. The differences that stand out is the initial cost and the fuel efficiency of the vehicle. It also is positioned as a vehicle that meets the commuter lifestyle. It is not meant to replace existing family vehicles, only as an addition to the family fleet as a daily commuter. Elio’s primary market is the commuters.

After segmenting the market there is a need to narrow down to a specific target, this achieved through target marketing, which breaks down the clientele into primary, secondary and tertiary categories (Dibb & Simkin 1996). From the empty seats in the restaurant it could be true that City Grill employs niche marketing to reach its target group. Niche market in simple terms is selecting a small group within a large group. By offering steak as their main delicacy they have specialized in a small group or a niche in the extensive restaurant industry.

This type of marketing focuses on selecting a particular market. This strategy can categorize the company into a single product. Concentrated marketing is famous for small firms because mass distribution, production and mass advertising are not necessary these firms can achieve profit with limited resources.

Segmentation means to divide the marketplace into parts, or segments, which are definable, accessible, actionable, and profitable and have a growth potential. As per the data given above it can be estimated that total no. of people who can consider buying the product can be the ones who lie in high income or medium income group, as the product is a bit costly and low income group cannot be targeted for the same. We are basically targeting the people who are fitness freaks or the people who are suffering from obesity or other diseases due to which they are advised to do exercise by the doctor so as to lose weight. Considering Manipal where people (Students) have sufficient time to do exercise, and Udupi which has a sufficient population of young

Market segmentation divides a market into a well-defined slices. The marketer’s responsibility is to identify the nature and number of market segments. To compete more effectively, many companies are now embracing target marketing. They are focusing on those consumers they have the greatest chance of satisfying.

Market segmentation and target marketing are the two key components of marketing strategy. The importance of understanding them cannot be underestimated by the marketers in order to be

Effective market segmentation is based on identifying markets that are accessible, differentiable, measurable, actionable, and substantial. A measurable segment is one where its purchasing power and size can be quantified. The millennial segment is one that its purchasing authority and

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 specialization that focused organizations is able to achieve in serving a niche market acts as a powerful barrier to substitute products/services that might be available in the market.

Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations