Market segmenting is the process of dividing the market into dissimilar, distinctive groups of people who have similar needs to be satisfied, alike wants and behavior, or who might want same products & services. The process of segmentation is supposed to be performed by each company being interested in creating and successfully implementing marketing mix, which implies product development, placement, promotion and choice of appropriate pricing strategy.
Markets can be divided depending on a number of wide-ranging criteria. Variables that are commonly used for segmentation are geographic (region, country size, climate etc.), demographic (age, gender, family size, religion, language etc.), psychographic (personality, life style, attitude etc.), behavioral (benefit sought, brand loyalty, decision making unit etc.), and technographic (motivation, usage patterns, standard of living etc.) ones. Successful segmentation requires the following: segments have to consist of members that are similar to each other; segments have to be distinctively different from each other; segments have to be computable and sizeable; segments have to be reachable and actionable; target segment has to be
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Its products are designed for men, women, and children of all ages. Nike doesn’t only sell athletic shoes, but an extensive assortment of sporting goods and garments. The company also invents, develops, and promotes high quality dynamic sports clothing, gear, and accessory goods. The company owns 20,000 retail accounts throughout the United States. It also cooperates with numerous independent distributors and has contracts with 110 other countries all over the world. The company also has contracts with Internet companies. Nike has many retail outlets all over the world, with their famous outlet Niketown situated in major cities. Obviously the one area that brings boundless financial prospect to Nike is the international
Segmentation is the process of identifying different macro-groups of customers (i.e. segments) based on their common characteristics. The process of choosing a target segment, on which to focus marketing activities on, is a process named targeting.
Segmenting the market will allow the company to focus more clearly on targeting the right customers with the right product that better satisfy their needs.
Market segmentation can be defined as the process of subdividing and defining a large homogenous market into a clearly noticeable segments
The text defines market segmentation as “the process of dividing the total market for a particular or product category into relatively homogeneous segments or groups” – (Ferrell & Hartline, 2014 p. 129). In 1994 the Indy Racing League (IRL) split with CART racing. The leadership at the Indy Racing League decided to break with the CART racing league because they were concerned that CART racing was too focused on growing the sport international as opposed to developing the American market. The leadership also felt that CART racing focused more on International drivers to the exclusion of American drivers. Indy Cart Racing set out to focus on promoting American racing and American drivers.
Market segmentation is the procedure of breaking up the market into smaller sets of customers who respond in a similar way to a given set of marketing incentives (e.g. price, product features) or, otherwise, groups of consumers with similar choices or requirements, which may be based on demographics, such as gender or age; geographics, such as by country, rustic/civilian areas; psychographics such as lifestyle; or behavioral factors such as brand loyalty. Market targeting means focusing your market efforts on one or some crucial segments that comprise consumers whose requirements and wishes most closely correspond to your product or service offerings. It may be the key to catch the attention of new business, growing your sales, and making your business successful. Market targeting is essential because by concentrating your efforts at particular sets of
Nike’s Asian operations had previously continued to soar generating US$300 million in 1994 in revenues to a whopping US$1.2 billion in 1997. However based on the Asian economic crisis, this had adversely affected revenues, while regional layoffs were inevitable. Nike also performed well in the European market generating about US$2 billion in sales and a good growth momentum was expected, however, some parts of Europe were only slowly recovering from an economic downturn. In the Americas (Canada and the U.S.A.), Nike experienced a growth rate for several quarters. The U.S. alone generated approximately US$5 billion in sales. The Latin American market at this point was exposed to economic volatility; however Nike still saw them as a market with “great potential for the future”.
Terrell, E. (n.d.). Market Segmentation. (Business Reference Services, Library of Congress). Retrieved April 6, 2014, from http://www.loc.gov/rr/business/marketing/
This notwithstanding, segmentation is an essential element for success especially in the software development industry. Because software services has to be unique to the customer, they cannot be treated like commodities or tangible products. Generic applications could be developed but such applications are not very usable especially when you have a special need. This means that Devatus cannot develop a generic application and put out in the market for every organisation. Should that happen, the application may not suit any specific organisation therefore will be redundant. If the market is segmented, prospects are defined and targeted segments are better fit with a specific offering which are beneficial to their organisations.
Market segmentation is marketing strategy that use by the company that we choose is Nova. Nova involves in dividing the broad target market into subsets of consumer. The consumers that have needs and priority, Nova can implement the market segmentation to them. Nova use the market segmentation is to identify the target customer. In addition, Nova use provides supporting data for positioning to achieve the marketing plan objective.
Segmentation, targeting and positioning are interrelated activities which are important to achieving a successful Marketing Mix. Discuss these concepts in theory and give practical examples of how they can be applied to one industry of your choice
Segmentation is a marketing strategy that involves separating a wide target market into small groups of customers who share the common need of using or purchasing the product that needs to be marketed. Market segmentation strategies are utilized to identify these groups of consumers and strategies are designed and implemented to make the product or service appeal to them. Support and also the product will be strategically placed in order to successfully achieve the ultimate marketing goal. Businesses and organizations may come up with different type of strategies involving different products and catchy phrases depending on the product or the target segment.
Caroline and Jennifer said that ‘Market segmentation is a crucial marketing strategy. Its aim is to identify and delineate market segments or set of buyers which would then become targets for the company’s marketing plans.’ (Tynan and Drayton, 1987) There are many ways to segment the market, such as age, region, environment, psychology and wages (Hall, Jones and Raffo, 2010).
Nike American Sportswear generated revenue of 7495 million US dollars in 2014, which was almost double of 2009 revenue of Nike Sportswear (Statista, 2015).The sales of (Athletic) Sportswear of Nike 90 million US dollars, however, the sale of Adidas Sportswear (Competitor of Nike) was 25 million US dollars, which was not even one third of Nike Sportswear sales (Statista, 2015).Nonetheless, the return on assets and equity are 13.41% and 26.43% respectively (Yahoo Finanace, 2015).
Nike is the number one innovator in the world in athletic footwear, apparel, equipment, and accessories. This worldwide company operates in an extremely different organizational structure than other companies, such as Reebok and Adidas. Nike operates tremendous marketing strategies and develops inventive designs to inspire athletes around the world. This company is one of the largest suppliers in the world in athletic footwear and apparel, main producer of sports equipment, and making Nike the most valuable brand among sports companies. The task for Nike is to join diversity and inclusion to encourage ideas and innovation. Around the world, this company is a popular brand.
According to Kotler et al 2013 market segmentation is defined as dividing a market into smaller segments of buyers with distinct needs, characteristics or behaviours that might require separate marketing strategies or mixes. As per the industry data which we were operating we used different theories to segment the market one of them is STP process. In this method whole market is sub divided into different segments based on three activities these are segmentation, targeting and positioning. From the market information in case study we identified similar groups of consumer under market segmentation activity. For example market E had consumers travelling between mini hub to medium city that had a new and growing market. While targeting the market we identified which group of consumers to aim for instance market D had major university and service sectors. Lastly in the product and brand positioning we created a concept so as to appeal the target market by running as discount airline. One of the approaches for market segmentation according to Kotler et...