Market Segmentation Essay

715 Words2 Pages

Market Segmentation for Beginners

Marketing is a broad category of business knowledge that covers many facets of a company's products and services, but at its foundation is the identification of markets and their subdivisions. These subdivisions or segments form the basis for which all other areas of marketing are dependent. The following is an introduction to what segmented markets are, and why they are important.

It is the starting point for marketing
Market segmentation forms the basis or starting point for all avenues of marketing your company's products or services. This includes branding, product development, distribution, advertising and all other forms of promotion. Of course, the market itself consists of all customers, but not …show more content…

However, you sell a particular type of widget that will appeal mostly to a subdivision of the larger market. For this reason, segmented markets must be identified. Knowing who is most likely interested in your specific widget will enable your company to maximize sales.

Various ways segmented markets can be viewed
There are different ways you can divide up a market. You can divide up your prospective customer base by demographics. This includes such things as gender, age and income. Market segmentation is also done by geography. Certain products may be successful in certain areas of the county or even in specific countries. A market can also be divided by activity. For example, if your product relates to fresh water fishing, you only want to identify the segment of fishing enthusiasts found at rivers and lakes.

The broad area of behavioral psychology
Along with the three market segments listed above, there is a fourth area that is very large. It is often lumped together under the banner of behavioral psychology. Under this large tent of market segmentation, there exists several interesting categories. There are markets that can be identified by social groups, lifestyles, attitudes and opinions. Again, this is a broad area of market segmentation, but what we think and how we live our lives determines, to a large extent, what types of products and services we

Show More
Related

  • Virginia Beach: Market Segmentation In The Market

    1014 Words  | 3 Pages

    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)

    Read More

  • Analysis Of Jetblue, United Airlines And American Airlines

    1419 Words  | 3 Pages

    Companies start by segmenting their customers by demographics, geographics, behaviors, and attitudes (Iacobucci, 2013). Once the company decides who their segment group is, they can target

    Read More

  • Bud Light Segmentation Analysis

    563 Words  | 2 Pages

    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.

    Read More

  • Marketing Case Study Of Primark's Market

    1944 Words  | 4 Pages

    Segmentation, targeting and positioning are the fundament of modern marketing (Proctor, 2002, p. 188, as cited in Harris and Schaefer, 2015).

    Read More

  • Allegiant Marketing Strategy

    808 Words  | 2 Pages

    Marketing is that broad area of business activity that directs the flow of services provided by the carrier to the customer in order to satisfy customers’ needs and wants and to achieve company objectives. Marketing is more than selling: it involves a number of business activities, including forecasting, market research and analysis, product research and development, price setting, and promotion, including advertising. Marketing also involves the finance activities such as credit and collection that are associated with ticket sales. Marketing is customer oriented…Without marketing and sales, there would be no airlines. (p. 274)

    Read More

  • Marketing Reflection Essay

    1007 Words  | 3 Pages

    “Our greatest fear is not in never falling, but in getting up every time we do.” – Confucius

    Read More

  • Market Segmentation Of Target

    1087 Words  | 3 Pages

    Market segmentation can be defined as the process of subdividing and defining a large homogenous market into a clearly noticeable segments

    Read More

  • Marketing Major Essay

    1396 Words  | 3 Pages

    Intro Deciding what you want to study during your college career can be a difficult and tedious task. This is due to fact that many young adults coming out of high school are unsure of what they want to do or what path to take career wise. It is also tedious because this requires that these individuals have to constantly try and explore new avenues so that they can find their passion in life. The path I chose to take when coming out of high school was entering the business school at Howard University.

    Read More

  • Lawn Mower Essay

    562 Words  | 2 Pages

    There are many ways to segment the market. Major variables used to segment the

    Read More

  • Costco-Market Segmentation Overview

    1495 Words  | 3 Pages

    Terrell, E. (n.d.). Market Segmentation. (Business Reference Services, Library of Congress). Retrieved April 6, 2014, from http://www.loc.gov/rr/business/marketing/

    Read More

  • Marketing: Segmentation, Targeting and Positioning

    1705 Words  | 4 Pages

    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.

    Read More

  • Glastonbury Festival- Music Event

    1225 Words  | 3 Pages

    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).

    Read More

  • Market Segmentation Of Airline Industry

    718 Words  | 2 Pages

    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.

    Read More

  • Airline Game: Report on the Simulation

    2976 Words  | 6 Pages

    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...

    Read More

  • Essay On Marketing Strategy

    3236 Words  | 7 Pages

    The main topic for this Extended Essay is to analyze the effectiveness of company’s market strategy. A marketing strategy can be defined as a process that helps a business to optimize the opportunities in order to complete business objectives, which mainly gain profits. It includes all basic and long-term field activities of marketing that deal with the analyzing of initial strategy, evaluation of the strategy, and making of a new strategy if the initial strategy is found to be ineffective or even might cause loss. (Homburg, Kuester and Krohmer 2009) To make sure the effectiveness of marketing strategy, its crucial to establish the right marketing mix which cover all the element needed in marketing a product. (Clark, et al. 2009)

    Read More

More about Market Segmentation Essay

Open Document