Market segmenting is the process of dividing the market into dissimilar, distinctive groups of people who have similar needs to be satisfied, alike wants and behavior, or who might want same products & services. The process of segmentation is supposed to be performed by each company being interested in creating and successfully implementing marketing mix, which implies product development, placement, promotion and choice of appropriate pricing strategy.
Markets can be divided depending on a number of wide-ranging criteria. Variables that are commonly used for segmentation are geographic (region, country size, climate etc.), demographic (age, gender, family size, religion, language etc.), psychographic (personality, life style, attitude etc.), behavioral (benefit sought, brand loyalty, decision making unit etc.), and technographic (motivation, usage patterns, standard of living etc.) ones. Successful segmentation requires the following: segments have to consist of members that are similar to each other; segments have to be distinctively different from each other; segments have to be computable and sizeable; segments have to be reachable and actionable; target segment has to be
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Its products are designed for men, women, and children of all ages. Nike doesn’t only sell athletic shoes, but an extensive assortment of sporting goods and garments. The company also invents, develops, and promotes high quality dynamic sports clothing, gear, and accessory goods. The company owns 20,000 retail accounts throughout the United States. It also cooperates with numerous independent distributors and has contracts with 110 other countries all over the world. The company also has contracts with Internet companies. Nike has many retail outlets all over the world, with their famous outlet Niketown situated in major cities. Obviously the one area that brings boundless financial prospect to Nike is the international
This can be difficult because many customers have changing needs and demands and they can be very different from one another. Skills based segmentation involves internally focusing on whether or not the company offers the skills necessary to target the demand of those customer bases. These processes work together to find the best customer demand to target and it ensures the core competencies of the business align with the demand of the customer they are
Image is a vital to the success of the giant international sports footwear and apparel corporation Nike. Endorsements by sports superstars like basketballer Michael Jordan, soccer maestro Eric Cantona and sprinting ace Cathy Freeman -- to name just a very few -- have made the company's "Swoosh" logo synonymous with "cool" for millions of young people worldwide. That image would be badly tarnished if it became widely known that the Nike empire is built on cheap Third World labour (including child labour), denial of trade union rights and collaboration with repressive regimes, most notably the Suharto regime in Indonesia.
Terrell, E. (n.d.). Market Segmentation. (Business Reference Services, Library of Congress). Retrieved April 6, 2014, from http://www.loc.gov/rr/business/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).
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.
...fected by print advertising even if they don’t realize it. Nike uses all different forms of advertising to appeal to all audiences.
There are a range of segmentations that allows a company to target potential customers effectively.
Market segmentation can be defined as the process of subdividing and defining a large homogenous market into a clearly noticeable segments
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.
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...
From their marketing strategies to their selling philosophies, Nike has developed one of the most recognizable and demanded name and logo tandems ever created.
Nike’s positioning in the market has more of a mass appeal compared to their main competitor Adidas who strive to make products for elite athletes. The positioning strategy for Nike is currently working at a satisfactory level as Nikes global annual sales between 2013-2014 was reported as 27.8 billion (Statista, 2014) compared to Adidas’ 19.95 billion (Statista, 2014). The global market for sports apparel is expected to grow at a compound annual growth rate of 4% between 2012-2019, Nikes compound annual growth rate during 2010-2012 was 12.3% which is an excellent result as the brand’s growth was larger than the market as well as outgrowing Nike’s closest competitors Adidas, Puma and Asics (Forbes,
Market segmentation allows marketers to easily categorise customers in order to identify target markets and products for certain types of customers. Elaborating on this, Pine, Peppers and Rogers (1995) mention that market segmentation is a set of broad characteristics that focus on a group of customers. Furthermore, Kotler (1988) states that segmentation is the act of separating a specific set of customers, that open up markets, with apparent needs, behaviours and characteristics that require specific products. With this being said, marketers use this foundation in order to build and gain more information to target certain markets.
Nike, Inc is one of the leading companies in the world that is known for its brand of athletic footwear, apparel, equipment and accessories.
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.