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4.0 Market analysis 4.1 Market segmentation and target market selection Our company segment market in demographic features, geographical distribution and behavioural descriptors. By doing so, our company will have a better understanding of our target preference in the industry. This is an important step in order to succeed. First, we segment demographic characteristics in age and income. Our company segments consumers who are teenagers and working adults with middle or high income. This is because teenagers are newly trend people who keep in touch with technology very often. Besides, they are catching up with technology which is in high-tech, innovative and special. Therefore, VeeEye Sdn Bhd will have the opportunity to get into the market. On the other hand, we segment working adults with middle and high income as they have financial ability to purchase our product. Adult workers who are highly educated will get well paid job with middle or high income. Therefore, they are more willing to spend for our product compare to lower income workers as they might not afford to purchase our product. Next, we also segment our consumer in geographical distribution. Geographical area such as Kuala Lumpur and Penang Island in Malaysia will be our target market. This is because both of the states have many industries with big company. Therefore, workers there will be getting higher paid compare to other state worker. With higher salary, they have more ability to purchase our product compare to others. Besides, they will be busy and under stress during their working hours. So, they might travel more frequently during weekend or holiday. Therefore they might need a good camera all the time with them. So, we choose Kuala Lumpur and Penang instea... ... middle of paper ... ...ke us easily approach to our target market’s spending behaviour and lifestyle. We have our own office for sell and repairing service. We believe that to get higher reputation from customers; we got to provide a good quality product which customers willing to pay for it and provide a good service such as customer able get free repairing service within 2 years warranted, give the full information and detail to customers and customers could get some discounts base on their order. In order to attract more customers, we have an idea launch our product on the online purchasing website such as Taobao, eBay, Zalora. Even customers from other country have a chance to make an order, we do delivery to them within the period, if more than that period, and the customer only paid us half prices of their order. This is one type of service provided by our company.
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)
The first step is to (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment and communicating that we have made the choice to distinguish ourselves that way (Consumer Psychologist, n.d.). •
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.
This is especially important to appeal to younger consumers who may not make a large salary. The company is also targeting people in their forties (Kashyap, 2016). The differing product offerings and brand images allow the retailer to attract more than one market
Segment marketing This involves the process of dividing the market into categories with different characteristics and needs. By doing this a company can adapt all their offerings to... ... middle of paper ... ... o penetrate these markets more strongly they had decided to wait with their launch in the US and Asia. However, with the forecasted market share standards not meeting its target they decided to launch the washing machine in the US and Asia earlier than planned which turned out to succeed since in the second quarter of the second year their revised forecasted market share figures where exceeded.
Although there are many ways in which a market can be segmented, the entrepreneur would benefit from demographic and behavioral segmentation. Within these two categories, income segmentation and benefit segmentation, respectively, would be the most helpful.
According to Investopedia.com (2014), market segmentation is the aggregating of prospective buyers into groups or segments that have common needs and respond similarly to a marketing action. By utilizing market segment, companies can categorize their customers into groups with common characteristics for marketing purposes. Each market group or market segment is unique based on their needs, interest, lifestyle, demographic, and behaviors and companies can use various criteria to create a target market for their products or services. Through successful market segmentation, companies can create successful targeted marketing to generate sales of products and services to ensure the organization’s success.
Target markets their products to a variety of market segments when speaking about their clothing lines. The top three segments are Age-Related Segments and Gender-Related Segments. Targets approach to development, marketing and advertisement is based on seasons, genders, age in the terms of wants and needs and styles while also staying true to their brand imagine. Target has positioned itself as one of the biggest retailers with a brand imagine that can connect to the consumers, and the ability to develop and deliver high end products that come at an affordable price.
“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 ...
Once a business has successfully completed segmentation based on the market into various groups the targets will be chosen. As we all know no one unique strategy will be able to appeal to all consumer segments therefore being able to come up with different strategies for specific targets are a vital aspect of marketing.
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).
To begin with, it is crucial to appreciate the meaning of segmentation and targeting because these two terms lay the foundation for this report. Consequently, segmentation is dividing a market, into groups of consumers with homogenous traits in order to provide each group with the desired product. What is the meaning of targeting? It is where an enterprise evaluates every segment with an objective of identifying segments with promising business opportunities. Considering the nature of the product in question, it sufficed to mention that liquor- filled chocolates are to be sold to adults.
Volterman’s product is unable to meet the need of people from all age group so they need to use market segmentation to meet the customer requirement with the common needs and characteristics. (3) Volterman organization are able to determine exactly who is their targeted market such as
Demographically we can segment the market into groups based on age, gender, family- size, income, family life cycle and occupation.
Nevertheless, one of the most important constants among all of us, regardless of our differences, is that, above all, we are buyers. We use or consume on a regular basis food, clothing, shelter, transportation, education, equipment, vacations, necessities, luxuries, services, and even ideas. As consumers, we play an essential role in the health of the economy; local, national and international. The purchase decision we make affect the requirement for basic raw materials, for transportation, for production, for banking; they affect the employment of employees and the growth of resources, the successfulness of some industries and the failure of others. In order to be successful in any business and specifically in today’s dynamic and rapidly evolving marketplace, marketers need to know everything they can about consumers; what they are want, what they are think, how they are work, how they are spend their leisure time. They have to find out the personal and group influences that affect consumer decisions and how these decisions are made. In these days of ever-widening media choices, they need to not only identify their target audiences, but they have to know where and how to reach