According to Horner and Swarbrooke (2005: 39), Segmentation may be defined as the process of dividing a whole market into subgroups or segments for marketing management purposes. Market segmentation is the division of the overall market for a service into various categories with common characteristics. In response to different segments, organisations facilitate the available resources to achieve greater efficiency, in order to satisfy specific needs of customers.
When one talks about market segmentation, this refers to companies or businesses ‘dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviours, and who might require separate products or marketing programs (Armstrong and Kotler, 2015).
Home Depot 's target market is individual homeowners/small contractors. Even though the traditional ideology is that cost leadership and product differentiation business strategies are mutually exclusive, Home Depot was successful at using a combination strategy. First, Home Depot optimized the cost leadership strategy by offering low and competitive prices to its customers by emphasizing higher sales volumes with lower margins, while instituting a high inventory turnover. Home Depot successfully offered a warehouse product strategy to the individual consumer for the first time. Previously, this type of price discounting was only available to professional contractors who earned product price
In order to market the product into the market successfully, marketers need to have some marketing strategy to enter the desired market and make profit. Market segmentation is the process of dividing a market into subsets of consumers with common needs or characteristics (Schiffman et al., 2011). Understanding the market size and segmentation is valuable, but the keys to effective targeting is to know just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends ( Berry, 1999).
Market segmentation was to dividing a market into distinct groups of buyers with different needs, charactistics or behaviour who might require separate products or marketing mixes, the company will first
Abstract: The well-known British brand, the Body Shop, is a strong advocate of environment and human rights. In recent years, it has accelerated its global presence by its naturally inspired, ethically produced beauty and cosmetics products. However, it has no market share in China yet. This paper provides an insightful perspective on this company and its products, as well as its competition that it may encounter in the future. The authors also point out the necessity
Market segmentation strategy involves dividing the market into different groups and how a market is segmented is based on certain variables. A Company must identify the parts of the market it can serve best in order to reach their specific target market as well as to achieve the maximum profitability. According to Prof. Dr. Christian Schuhart, several criteria used for different market segmentation include: demographical, socio-economical, psychographic and observable behavior segmentation.
Since the conceptualization of The Body Shop, their products have been centered on skin, hair, and body care, which are made from natural and exotic ingredients, that will also address social and environmental issues. They have unveiled a number of ground-breaking products that are in line with the brand's position, all the while enhancing their customer's well-being and increasing their self-esteem, without falling into the stereotypical images that The Body Shop has also been campaigning against.
Market segmentation is the process by which a diverse market is divided into a number of distinct sub-markets (Walker and Mullins). The objective is to identify groups of customers with similar needs and characteristics so that they can be served effectively (Jobber, 2007). By grouping together with similar
Market segmentation is a strategy that involves breaking down a business’s current target market into smaller subsets in order to establish a more defined set of market categories. It is important to first look at the tools available to assist with segmenting the market prior to beginning your segmentation. These tools include the following:
Market segmentation is the division of the total market into relatively homogeneous, but distinct segments. It is used to identify target audiences and strengthen a campaign 's effectiveness in reaching selected segments. Segments usually respond to campaign elements differently and different techniques are required to reach and motivate various segments.
MISSHA cut down this expenditure by one-fourth. They used plastic materials for packaging and got rid of paper box and product sheet. Instead, they developed a nice design for brand logo. They tried to avoid building a cheap brand image.