INTRODUCTION
Most of businesses today have diverted from defining their market as a single entity instead they are broken down into small pieces Known as segments; the objective of this assignment is to explain the different Market segments and its benefits. In other to get a clearer view about this assignment a deeper look on what are the various kinds of segmentations and their significance in the market will be brought up. This research will be mainly focused in Nestlé’s company and how it operates.
1. DESCRIPTION OF SEGMENTATION
a) WHAT IS SEGMENTATION?
Segmentation is a marketing strategy which consist of dividing the market in small groups allowing the research of categories of consumers presenting a set of homogeneous needs. Or, more simply, it is the process of dividing the total market into a number of smaller, or homogeneous submarkets, termed market segments (Danneels, 1995 cited by Falbey, 2001). There are many criterions in order to segment but the most usual are demographic segmentation that involves grouping the population based on relevant criteria such as age, gender or income. Geography for example here we take in account climate, type of housing or town size. The socio-demographic minds about age, sex, household size, income, occupation, education, culture or religion. Behavioural and Psychographic segmentation, which establishes consumer in groups based on similarities in behaviour and attitude, which refers to lifestyle, beliefs, feelings, personality, motivation purchase requirements, the opportunity to purchase or use and fidelity to the brand rate. (Isaacson, 2012)
b) WHY DOES BUSINESS USE SEGMENTATION?
All companies exist to achieve set aims and objective therefore, most market segmentations are the...
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As discussed in Chapter 3, there are several bases for market segmentation. Because the needs and wants of consumers in various markets differ, there are general indicators that are used to segment markets—geographic demographic, and arguably most importantly, psychographic segmentation. From this, variables like lifestyle, family size and region are used to identify key segments for Virginia Beach. (Spiller, 2012, 88)
Recently I watched a T.V. show called The Profit and recognized some similarities from the current Marketing chapter discussed in class. The current episode was about a company called Bentley’s Corner Barkery, which is committed in providing all-natural pet food and treats for their customers. The episode highlighted how Bentley’s Corner Barkery was struggling and not reaching all of their potential customer base because of its marketing structure among other poor managing and financial elements. Before Marcus Lemonis (he is the investor) the company marketing strategy was the quality of product will attract customers. Marcus Lemonis immediately ask for the company’s mission statement and help the owners identify their target customers by segmentation.
Segmentation variables can be classified into four major classes; geographic, demographic, psychographic and behavioural. The use of these categories either individually or in combination assists companies to identify and establish market segments which is relevant to the product or service they are offering. This in turn helps these organisations to evaluate the relevant segments to choose the pertinent target market.
Aside from low-cost Demographic segmentation: separating a market demographic including gender, age, household type, education level and income. It 's broadly acknowledged that advertising division can prompt upper hand. By fragmenting the business sector the organization will know the portions which recognizes request, the association can target particular fragments which can support their image and can expand benefits. Promoting portion will know the craving of client and along these lines prompts development of existing item or a passage of another item into the business sector.
Market segmentation can be defined as the process of subdividing and defining a large homogenous market into a clearly noticeable segments
“A market segment consists of a group of customers who share a similar set of needs and wants. The marketer’s task is to identify the appropriate number and nature of market segment and decide ...
Terrell, E. (n.d.). Market Segmentation. (Business Reference Services, Library of Congress). Retrieved April 6, 2014, from http://www.loc.gov/rr/business/marketing/
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).
The current organizational structure has numerous benefits for McDonald’s Corporation. For the purposes of improvement, the organization should further its use of geographic segments. In the recent past, the company has experienced either slow or no growth. In that respect, the organization needs to tailor its product range to different markets. This will assist in capturing attention from the various consumers. Use of segment heads will be useful in understanding different markets, hence driving growth in the organization. Increased segmentation will allow executives to track market feedback right from employees on the ground. This approach will also facilitate quicker response times to consumer needs. As a result, the organization will be able to maximize on its sales opportunities.
Dickson, P. R., & Ginter, J. L. (1987). Market segmentation, product differentiation, and marketing strategy. Journal of Marketing, 51(2(April 1987)), 1-10. Retrieved from http://www.jstor.org/stable/1251125
Market segmentation means dividing the market into distinct groups that have common needs and will respond similarly to marketing action. Each segment must be unique, have common needs, and respond in a similar manner to marketing efforts. Target market is the group of potential customer that has been selected by business to focus its marketing efforts towards. This is the group the business wants to sell its products/services to. Positioning refers to the image created in the minds of customer of its product or brand. It is a perception created in the minds of the consumer relative to that of its competitors.
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...
Barry, J., & Weinstein, A. (2009). Business psychographics revisited: from segmentation theory to successful marketing practice. Journal Of Marketing Management, 25(3/4), 315-340.