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Fundamentals of Marketing Segmentation

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Market segmentation is the selection of groups of people who will be most receptive to a product. The most frequent methods of segmenting include demographic variables such as age, sex, race, income, occupation, education, household status, and geographic location; psychographic variables such as life-style, activities, interests, and opinions; product use patterns; and product benefits. Much segmentation involves combinations of these methods. No matter how segments are defined, however, they are characterized by considerable change over time.

The segmentation of coco-cola can be described as demographic and psychographic because the main consumers of coco-cola are people in the age group of 30 and below. This can be seen by Coca-Colas advertising campaigns, which are targeted toward to the young. But also the lifestyle, as peoples' lifestyles changed they demanded different soft drinks. For example, consumers might want a drink containing sugar and caffeine in the morning, a diet soft drink for lunch and a caffeine-free drink at night. This market segmentation, created an opportunity for more 'Coca-Cola' brand drinks. Therefore we have got Sprite and Fanta. And another segment is usually the loyal coke drikers who have nothing but coke, no substitutes. They are addict to the taste. That makes them to keep purchasing coco-cola. To promote their products, Coca-Cola is also getting their product advertised more frequently. We can see the advertising of coco-cola from magazines, televisions, football fields and McDonalds etc.

Red Bull is a energy drink, it is targeting consumers aged teenage. However, now it is fairly widespread although originally focused on student bars, clubs and universities. To compare with other d...

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... example, all people need drinking and are willing to pay for it. However, this large group is made up of a number of segments with various needs. Some people may want a health drinks, some people may like the cheap drink. The firms can't satisfy all segments in the market, instead, a company targets its effort on one people or organizations on one or more of these segments.

Positioning refers to a product's image in relation to directly competitive products as well as other products by the same company. And after you position the product, then you can identify the differential advantage and disadvantage. For example, given rising health consciousness among many consumers, manufactures of mayonnaise, corn oil and other food products recognized the need to introduce products that would be perceived as more wholesome.
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