Lawn, Lawn mower, Market segmentation 779 Words 3 Pages of Marketing, market segmentation is one of the key marketing strategies to look into. Other examples of distributional segmentation would be an upscale line of clothing sold only in expensive department stores, or a luxury hair shampoo sold only through upscale beauty salons. Major objective is to maximize sales. While it is relatively easy to identify segments of consumers, most firms do not have the capabilities or the need to effectively market their product to all of the segments that can be identified. Few organizations are big enough to satisfy the needs of an entire market. The first step is collecting as much information as possible on the industry, competition, key metrics, and consumers.
After a company has identified the segments, it needs to describe them in terms of who they are and where they are located, i. A good market segmentation will result in segment members that are internally homogenous and externally heterogeneous; that is, as similar as possible within the segment, and as different as possible between segments. They then develop marketing programs tailored to each of thesesegments. Market segmentation is the analysis of population demographics so they can be categorized in specific ways. Marketing campaigns are designed and implemented to target these specific customer segments. Likewise, Hindus consider a cow as sacred.
Behavioral segmenting is based on repeat or loyal customers versus one-time users. For example, if you were designing a market segmentation questionnaire for an airline, you might conduct a series of depth interviews to help design the questionnaire. International brands like Nike, Adidas target segments with middle and high income group, while brands like Bata, Liberty target lower income and mid income group population. Usage rate: Markets can be distinguished on the basis of usage rate, that is, on the basis of light, medium and heavy users. The organization does so by developing a distinct marketing mix for each segment.
Behavioural variables are the fundamental basis of segmentation of consumer markets. In addition, each party involved may have different reasons for buying or not buying a particular brand. To help them in this process, they need to analyse and break down the different markets into segmentation categories. Reassembling the Nest Marketers are interested in purchase decisions that depend on company variables, situational factors, and the personal characteristics of the buyers. Teenagers in a certain region may prefer western lifestyle and similarly, teenagers in a different region may exhibit the local lifestyle. In today's economy, it is more important than ever that business owners are able to locate the most desirable group of individuals to whom they should advertise and promote their product or service.
They target their specific product to one. Often, hidden in plain view in the cross-tabs are tremendous findings that could form the basis for new or improved marketing strategies, advertising campaigns, or new products. An organization that adopts a concentration strategy chooses to focus its marketing efforts on only one market segment. Demographic variables : Age: Age is used to segment many consumer markets, like food and clothing. Occasion: Buyers can be distinguished according to the occasions when they purchase a product, use a product, or develop a need to use a product.
Correlation analysis and regression can be used for this purpose. Why Pursue Target Markets The purpose of identifying various market segments within the broader market is to refine the targeting of paid and organic advertising. The problem is to identify the best variables for segmenting industrial markets. There exists a performance risk, as there might be something wrong with an unfamiliar brand. Customers differ greatly, and it is hard to discern which differences are important and which are trivial for developing a marketing strategy.
A persons personality gets modified, belief changes, demographics change, etc. Some brands are targeted only to women, others only to men. Some may buy one particular brand on most occasions but also buy two or three other brands. Thus, only one marketing mix is developed. Market segmentation is a method used by marketers to break up the overall market into meaningful segments, much like you would segment an orange.
This paper specifically discusses the. While businesses and final consumers behave similarly at times, there are also several differences. After completing my post graduation I thought to start a website where I can share management related concepts with rest of the people. Firms try to modify consumer demand to develop clusters of at least a moderate size. Bidding is an important method for obtaining government and quasi-government business, but because it emphasizes price, bidding tends to favor suppliers that, perhaps because of a cost advantage, prefer to compete on price.
The authors warn, however, that a nested approach cannot be applied in cookbook fashion but rather must be adapted to individual situations and circumstances. Companies can use various strategies of differentiation, leveraging on the origin of the goods or the processes used in manufacturing them. For example, although financial services are in a sense a single industry, commercial banks, insurance companies, stock brokerage houses, and savings and loan associations all differ dramatically. The marketers also study the population density in the towns and villages to understand and forecast the sales. Provided by: Global Text Project. Market segmentation is an integral part of a company's marketing strategy.