Market Segmentation – How & Why
As well as the physical aspect of our store changing we have to look
at the market differently. Where it was once possible to take a pile
it high sell it cheap approach, to achieve broad appeal to the
population we need to cater to the needs of the population. This is
achieved by breaking the population into groups and then releasing
products and services that meet the needs of these groups. This is
known as target marketing. Although we all appreciate the theoretical
economies of scale given by mass marketing a single product, there are
few products that appeal to everyone. Naturally this has led to a
segmentation of markets as companies that marketed one product, now
produce a range of products. An example of this is Coca Cola.
Originally they sold one product, as well as standard coke we now have
diet coke, coke with vanilla, cherry coke, sprite, lilt and many more.
By accepting that people have different needs and different shopping
behaviours we can market ourselves to these segments and attract new
customers. There are six steps to market segmentation, targeting &
positioning and these are
1. Identifying qualities for segmenting the market
2. Developing profiles of the segments created
3. Develop measures of segment attractiveness
4. Select target segment
5. Develop positioning for each target segment
6. Develop marketing mix for each target segment.
We have talked about segmenting the market. The question is how do we
do this? There are many ways to segment. You could do this based
upon household income, gender, age, previous purchases etc. In fact
there are many ways to identify different market segments and I will
briefly the more commonly used methods.
Geographical
It is possible to segment the population according to Geography,
people from “the North” drink more Irn Bru than those from the South.
This can be measured by the success of advertising, an example being
the Jamie Oliver advert for Sainsbury’s was less successful in the
north.
Demographics.
This is where segmentation is done by using personal characteristics
of the population; Age, gender, income, stage in the family life cycle
etc.
Socio Economic Grouping.
This is based upon the occupational status of the head of the
household. It is based on the traditional social class system of this
count...
... middle of paper ...
...e of segments enables a company to specifically target an
audience within a population. An example would be if I asked all of
you what you would go out and spend fifty pounds on if I were to give
it to you now. The chances are that everyone would come back with a
different suggestion. However it I likely that some of you would go
and buy clothes, some you would go and buy CD’s or DVD’s and some of
you may possibly save the money instead. By grouping people together
it is possible to target a product at an audience that will wan to buy
the product. This should ensure a return on investment quickly for
the producer and could lead to rapid growth. However a universal
product is unlikely to appeal to a wide range of people so it is
possible for a producer to create products for different market
segments. Today we are going to discuss in more detail Cola drinks
and C.D’s as product within our superstores. For the purpose of
illustrating segmentation further it is worth noting that recent
demographic shift of men drinking Diet Coke has been noted by Coca
Cola and their adverts are targeted far less specifically at woman
than the old “Diet Coke break” ads of the nineties.
Even though I have no real experience in software development I know that dealing with software is not easy and can be very frustrating. Six sigma incorporates many tools that help organizations determine their customer requirements. Before reading this article I thought six sigma was just about statistics and improving processes. It is so much more than that. It’s also about managing all given information or data quantitative or not. Six sigma can help with customer requirements and also with understanding processes capability.
buying them winter clothing, due to the fact that they had to leave all of their belongings
The 21st century has brought new challenges to manufacturing and service organizations, and one of these important challenges is that the industry is constantly changing (Maleyeff, 2012). Therefore, the systems, processes and procedures of successful businesses will be able to evolve according to the constantly changing industry needs. Six Sigma is one method being widely used by both manufacturing and service businesses today to provide a framework for continuous process improvement (Maleyeff, 2012).
Sitnikov, C. (2012). Six sigma as a strategic tool for companies. Young Economists Journal / Revista Tinerilor Economisti, 94-102.
what he has really earned. He does not wish to replace them with clothes and
enough things to care for her baby and her baby becomes sick and she does not know what to do.
The Six Sigma approach was designed by Motorola in 1986. The primary objective of the concept was to develop a tool for tallying the process defects and, as the result, improving business operations. The foundations of the approach are the customer needs, statistical analysis of data and facts, and timely execution. The method promises numerous benefits such as increasing performance and profitability of an organization, improving product or service quality and employee morale, decreasing costs, the growth of market share, the higher level of satisfying customer needs, etc. (Meredith & Shafer, 2013). The primary advantage
...ould pay $50 plus to a foundation that helps the economically impoverished with college and foundations that helps them get food for the families.
The Six Sigma process, developed by Motorola focuses on saving time, lower costs by improving quality, identifying the causes of defects and removing the causes of defects, and minimizing variability in manufacturing and business process (Satterlee, 2013). The acronym, DMAIC represents the Six Sigma improvement model. The steps in the DMAIC process are to define the purpose, scope and output and then define quality; measure the process and collect data; analyze the data ensuring reliability; to improve by modifying existing process or procedures; and controlling the new processes to ensure increased performance levels are maintained (Satterlee, 2013). The foundation of the Six Sigma processes is to eliminate waste and improve
After all of the research I have done I have gone back and forth on what side of the issue I fall on. I now agree more with the opponents of ENDA because the articles I read have now shown me that even though equality among everyone is important ENDA is not the right way to go about it. ENDA is too drastic for what we need to fight discrimination in this country. What changed my view that I had in the beginning was when I was going through all of the arguments against ENDA and I realized that, even though I am all for equality no matter what the circumstance, it’s too drastic to open our small and large business to thousands of lawsuits. Lastly, everyone should have the same opportunities as the next person but the employment non-discrimination act is not the way to go about it.
Conclusion Companies are better able to market their products to consumers if they have a good Understanding of the consumers and the basic purchase decision process. By understanding the consumer and the type of purchasing behavior associated with different products, marketers are more likely to create a marketing campaign that positively impacts the consumer’s purchasing decision.
When a business aims to be as successful as possible in selling its products and services, it must examine in detail whether or not the products will be attractive and necessary; if the price is optimal; if the product is being distributed in the best locations; and finally, how interest and awareness can be created for the products. In order for a business to target all of these elements at the right people at the right time, it must employ the right type of marketing mix: Product, Price, Place and Promotion.
Six Sigma is a set of tools, processes and techniques that aid in the improvement of any business processes. It has the ideal goal of perfecting the processes that may make it more efficient and effective. It needs to follow a disciplined and systematic approach to achieve the efficiency and effectiveness that it desires. Six Sigma relies a lot on the data available from the organization; hence, it is important that these data are properly stored and then can be accessed quickly and efficiently by the members of the group. The Six Sigma also tries to eliminate any faults in the process or system, in which it arrives with six standard deviations (hence, the term six sigma) just between the mean and the desired value. The Six sigma process can be applied in almost all processes from manufacturing to transactional. It also does not matter whether the business offers a product or a service.
According to Frey, prostitution is defined as “acting against one’s convictions in order to get a reward” (Frey, 2003). Prostitution at one point of time and still may be a controversial issue within society, some may think it’s illegal for a woman to go out on a corner and sell her body and others may it’s an easy way to make a living. Prostitution is seen by many women as easy making money for their family, drug habits, paying off drug debts, etc. but could lead to many complications such as diseases, death, arrest, etc. In one study, 67% of a group of law enforcement officials expressed the opinion that women did not enter prostitution voluntarily (Raymond, 2003). Raymond also mentions that 72% of social service providers did not think that women voluntarily choose to enter the sex industry (Raymond, 2003).
Market Segmentation, Positioning and targeting for BMW 1.1 Introduction This report aims to examine the market segmentation, positioning and targeting of BMW (automobile company). BMW will be examined giving information about the company and where it is now and any recommendations that we feel are appropriate. 1.2 BMW Company Profile BMW was formed in 1917, from the merger of two small aero engine makers. Their famous blue and white symbol stems from the colours of the Bavarian Luftwaffe and is said to resemble the view of the one of their plane through a propeller. BMW is renowned for its sporty, sophisticated & luxury image which has been built up since the 1970's with many motor sport victories ranging from Touring Car to Formula 1.