Jan 01, · Market segmentation is the division of a market into different groups of customers with distinctly similar needs and product/service requirements. Or to put it another way, market segmentation is the division of a mass market into identifiable and distinct groups or segments, each of which have common characteristics and needs and display similar responses to Segmenation Market Segmentation Market segmentation is the division of a market into distinct groups of buyers who might require different products or marketing mixes (Kotler et al, ). It is the division of a heterogeneous market consisting of buyers with different needs and wants, into homogeneous segments of buyers with similar needs and wants. Therefore, the segments Essay On Market Segmentation. Words14 Pages. The term MICE in literal terms is an acronym for Meetings, Incentives, Conferences/Conventions and Exhibitions. MICE tourism combines business with pleasure. It’s a niche segment of tourism dedicated to planning, booking and conducting conferences, meetings, seminars and other events. Dwyer and Forsyth,
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Market segmentation is the process of dividing the market into parts that are different from one another. It is the identification of potential customers who would buy your products. Different customers have different needs and it is not possible to satisfy these needs by treating all customers in a similar way. Most organisations do not have all the resources to satisfy the needs of all the customers. Therefore, it is necessary to identify the similar groups of customers and to serve one or two group with the available resources. When market segmentation is done well the members in each segment of the market are as similar to each other as possible inside a segment and are also as different as possible among segments. Levels of market segmentation: 1. Mass Marketing: providing the same product to all consumers.
Example: Salt. Segment marketing: providing different products to many segments. Niche Marketing: providing different products but to sub segments, market segmentation essay. Micro-Marketing: providing product which are preferable to individual choices. Segmentation Variables: There are four important bases on which market segmentation are carried out amongst consumer markets. Order custom essay Essay Summary of Market Segmentation with free plagiarism report, market segmentation essay. Geographic segmentation: This market segmentation essay of segmentation divides the market on the basis of geographical area. Marketers use geographic segmentation to divide the markets in geographical areas in order to be able to provide products to consumers depending on their different needs.
Different geographical areas have different needs market segmentation essay wants. For example, people living in a village will not have the same needs and wants as the people living in a city. Therefore, it is important for marketers to divide the markets into geographical areas. This can be done by region, size, market segmentation essay, climate, population, etc. A geographical area can be a city, country or just a small area in a city depending on the requirements and the similarity of consumer needs and wants. Demographic market segmentation essay Demographic originates from the word demography which means the study of population. This segmentation is done by dividing the market into parts based on the age, gender, income, family lifecycle, education, ethnicity, nationality, religion, etc.
Demographic variables are one of the most popular for segmenting consumer groups, market segmentation essay. As these are common variables differentiating the needs and wants of people. Your browser may not support display of this image. Examples of demographic segmentation include: Huggies diapers which provide an example market segmentation essay the age demographic segmentation as they produce products diapers for kids. Also Marketers focus on the affluent market segments depending on market segmentation essay income, a good example is designer brands like Louis Vuitton providing luxury goods for consumers earning higher income.
Gender segmentation is mostly used in the cosmetics industry or the clothing industry or even magazines, for example vogue has a separate magazine for men, i. Psychographic segmentation: Psychographic segmentation divides the market on the basis of personality, social class and lifestyle. Lifestyle segmentation involves dividing the market depending on the way people live, market segmentation essay. Marketers divide these segments on the basis of Activities-Interests-Opinions of the consumers. Social Class is particularly based on the occupation of the consumer.
This is divided into various classes such as:, market segmentation essay. Upper middle class. Middle class, market segmentation essay. Lower middle class. Skilled worked class. Working class. Subsistence Personality segmentation is the development of products based on personalities in order to match the target consumer personality, market segmentation essay. For example, sports products are used by people having a sports personality. Behavioural segmentation: Behavioural segmentation refers to the purpose of a consumer buying a product or service.
Every customer looks for different benefits from different products. For example, a customer could seek various benefits from toothpaste purchased. Some buy it for teeth whitening, some for gum care, some to control tartar, some to freshen breath. Hence, market segmentation essay, the marketer needs to understand and segment the benefit sought by each customer. Some more examples of behavioural segmentation include, airlines divided into first class, business class and economy class, market segmentation essay. Similarly restaurants have non-smoking seating as well as smoking seating.
Based on these factors appropriate marketing mixes can be developed. There is another variable under the behavioural segmentation which is occasion. This determines the need for the product on the right time or occasion. For example, Christmas trees have the maximum demand during Christmas. Also the rate of usage of a product is another important variable. It divides the users into light, medium and heavy users. The marketers must aim to attract the heavy users as they provide most of the business. Targeting: Targeting is the market segmentation essay stage of the segmenting-targeting-positioning-process STP, market segmentation essay.
Targeting takes place after a marketer has divided the market in to segments segmentation. Targeting is understanding the needs and wants of the market segment and using the resources to meet these needs. In the process of targeting the marketer needs to select one of the segments of the market and use its resources to satisfy the needs and wants of that particular segment of the market. There are different targeting approaches depending on the type of target markets. They are as follows: Your browser may not support display of this image. The first approach is about a single product and a single segment of the market as shown in the above figure.
This approach deals with just one target market and aims to produce one product to fulfil the demands of that particular market. For example: Benson and Hedges manufactures tobacco cigarettes for one market segment which is smokers, market segmentation essay. They produce cigarettes which are consumed only by smokers. Hence, their target market is smokers. Therefore, they need to identify the market segmentation essay and wants of smokers and come up with appropriate marketing mixes, market segmentation essay. This also includes customized products for individuals. An example of this is Levis Strauss, market segmentation essay, which makes personalised jeans for women.
Other examples of customized products include NikeiD custom shoes which allow its customers to design their own shoes. The second approach is when one product is produced to satisfy the needs of many segments of the market, market segmentation essay. It is the one with single product and many segments. This can be related to mass marketing where one product is aimed at the entire market. Example: budget airlines like Easy Jet which provide cheap flights to many segments of market segmentation essay market. Nokia is another example which manufactures mobile phones for various different market segments. The third and last approach is the multi-segment approach. This includes the market segmentation essay of many different products within one organisation to target several segments of the market.
This example is very common with big brands which usually gain success in one product and then expand more differentiated products involving much more segments of the markets. Sony is a good example as they provide many different products for different target markets. Such as Sony Laptops, Digital cameras, Television, gaming, mobiles, etc, market segmentation essay. Also another potential example is Virgin which has various divisions targeting many segments in the market. Some of which include Virgin media which serves as a mobile and broadband company, Virgin Atlantic consisting of airlines, Virgin Active which provides gym and health care, and many more. This in marketing terms is also known as diversification.
Positioning: After dividing the market into segments and identifying market segmentation essay target markets, it is important to market segmentation essay a marketing mix with the help of the positioning strategy. The variables of the marketing mix must meet with the needs of the target markets. These in other words are the ingredients of the offerings you make to the consumers. The elements of the marketing mix include: Price: This determines the price of your product which is very important. It has to be compared to the price of your competitors. This being the only element in the marketing mix which creates revenue carries a lot of importance.
It is quite difficult to determine the price; hence there are market segmentation essay strategies that can be used. Market Skimming: high price and less supply Market penetration: low price market segmentation essay high supply Your browser may not support display of this image. Product: This element is simply meeting the requirements of the target market in relationship to the desired product. It is necessary to identify the wants and needs of the target market and to develop the product according to these. This can be done with the help of the benefit sought variable of the behavioural segmentation which we saw earlier. Identifying the benefit sought from the product by the consumer it should be developed appropriately.
Also the company needs to know what the unique selling point is about their product which is different from the competitors. Place: this refers to the distribution of the product by the company or business. Basically it is the location of the place where the products will be available to the consumers. There are different channels of distribution as shown in the diagram below: Your browser may not support display of this image.
Market Segmentation Starbucks Project
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Market segmentation is the process of dividing a market into prospective buyers who have different needs and characteristics, or behaviours, and who might require separate products or marketing programs. A company is able to step up its marketing and sales efforts and reach out to a whole new market by using gender segmentation Apr 21, · Essay,Pages 3 ( words) Views. Save to my list. Remove from my list. Market segmentation is simply a modern marketing strategy in which the market for your customers are divided in various several groups and segments based on some major key factors such as demographic, geographic, psychological and behavioural factors. By dividing the Jan 01, · Market segmentation is the division of a market into different groups of customers with distinctly similar needs and product/service requirements. Or to put it another way, market segmentation is the division of a mass market into identifiable and distinct groups or segments, each of which have common characteristics and needs and display similar responses to
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