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Introductory paragraph on market segmentation
Question on market segmentation
Market segmentation and its role in marketing
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Recommended: Introductory paragraph on market segmentation
The Concept of Market Segmentation
The assistant to the Manager of the marketing department of Dyson have
been asked to write a report that describes the concept of market
segmentation with suggestion on how Dyson could segment its markets,
an outline of the new product development process along with
suggestions of how Dyson should apply these stages and concluding with
an explanation of how Dyson can perform their marketing control.
Procedure
=========
This report is fully based on secondary data, primarily from the
course literature but also other internet based sources.
Findings
========
This report will systematically explain the concept of market
segmentation together with examples of how Dyson can segment its
markets. This will be followed by a stage outline of the new product
development process accompanied by my suggestions on how Dyson should
apply these stages. Finally, a descriptive scenario of how Dyson might
control and monitor its performance will follow.
Levels of market segmentation
-----------------------------
Mass marketing
A company using this strategy does not segment the market at all; it
offers the same product and uses the same promotion for all consumers.
This method has often been used by companies with mass production of
convenience products or by companies with few or none competitors.
Mass marketing is associated with low promotion costs often reflected
by a low price.
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.
Bibliography
============
Internet
http://www.dyson.com/
http://www.quickmba.com/marketing/market-segmentation/
http://www.examstutor.com/business/resources/studyroom/marketing/market_analysis/8_psychographic_segmentation.php
http://www.tutor2u.net/revision_notes_marketing.asp
Literature
Kotler,P Wong,V Saunders,J Armstrong,G (2005) Principles of marketing
Harlow; Pearson Education Limited
Segmentation is the process of identifying different macro-groups of customers (i.e. segments) based on their common characteristics. The process of choosing a target segment, on which to focus marketing activities on, is a process named targeting.
Segmenting and profiling a market is done in order to create a product that best suits the needs of the desired consumer. Market segmentation is useful as it separates the total market into different segments allowing a company to create a product specific to the consumer’s needs. Profiling the market then allows the marketer to define the certain characteristics of the target market helping the product to cater better specifically to their needs. Sources of information that could be used to segment and profile the market include industry sources, using qualitative and quantitative research, priori research, by making assumptions and using research to support them as well as existing research data.
The CEO of Dyson believes that there is always more elastic way to have innovative strategies for the benefits of organization which in results to gain more and more development for both firm and employees across the boundaries. Dyson whose priority is towards commitment to consumer styles formed a group of businessmen gradually known as CNB (create new business) whose main responsibility is to discover long term technological styles and vision of new and unique products which always make the customers addicted to their products. Dyson has gathered the berries from its team work and strong determination towards innovation.
Many factors should be addressed when defining a target market. These factors include market segmentation, product life cycle, and the four "P's" that make the marketing mix. Market segmentation is the process of dividing a total market into market groups consisting of people who have relatively similar product wants and needs. There are four major segmentation variables: geographic, demographic, psychographic, and behavioral. Geographic segmentation includes world region, country region, city, density, or climate. Demographic segmentation can consist of age, gender, income, occupation, education, race, religion, or nationality. Social class, lifestyle, and personality fall into the psychographic segment. The behavioral segment divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product (Bethel, 2007). Once the market segment is identified, that market can be targeted.
Terrell, E. (n.d.). Market Segmentation. (Business Reference Services, Library of Congress). Retrieved April 6, 2014, from http://www.loc.gov/rr/business/marketing/
It has been observed since the inception of Marketing that marketers target to only specific market and how they identify such market. There are certain criteria or base they use to identify the consumers who they would be serving to. Customers do have unique requirements satisfaction levels and aspirations. Some customers however are similar with respect to their requirements of goods and services. In such case if their needs are identified and they can be grouped in quantities of a specific size then it can be segmented. Now each customer group have specific expectations and businesses must cater to the needs of the segmented that has been targeted.
Marketing segmentation is a tool used by in business by marketers to hone in on their potential consumers in order to satisfy customer needs with the right goods or services (Kurtz, pg. 297). Steve Jobs was a great marketer. His philosophy in marketing was to create a product that people didn’t know that they needed and sell it to them to where they cannot seem to live without it.
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).
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 This document prepared and presented by Business Resource Software, Inc. Market Segmentation The purpose for segmenting a market is to allow your marketing/sales program to focus on the subset of prospects that are "most likely" to purchase your offering. If done properly this will help to insure the highest return for your marketing/sales expenditures.
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...
Market Penetration means existing product being supplied into current market to increase the market share by selling more buildings to the current customers or finding new customer within these current markets, these type of strategies consider comparatively low risk because customers and products are existent from the beginning.