Introduction:
In this assignment I will write many things about segmentation. It will include an explanation of what segmentation is and how it works in companies. I will also include some examples to help explain and analyse why segmentation is very important to all businesses including my chosen company. During this assignment I will also explain the relevance of segmentation to my chosen company and how they use it as part of an overall marketing strategy.
Description of segmentation:
The purpose of market segmentation is to divide a large market into smaller parts in which the consumers have similar characteristics and needs for goods and services. Also the consumers could be segmented into more than one consumer group.
For example the Demographic segmentation which is the customer group could be sorted by age, gender and annual income.
So we take the large group to separate them, first we separate male and female. We may sell most products to females so we want segment base point on that group, and then after that we segment base point on income which maybe we sell towards an upper class segment. Once again that we keep segmenting until we got a small group that is the highest probability of purchasing our products which is the aim or goal for the company.
In addition to demographic segmentation companies can also use Geographic segmentation which is simply dividing the market into groups based on geographic criteria such as location, can be broken down according to the administrative division. But also can be broken down by geographic region, like the division of autonomous regions, municipalities, county or coastal, urban and rural areas. In different regions, consumer demand is obvi...
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Reference
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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 company first needs to collect demographic and geographic information relevant to potential store location choices in order to segment its market. It is extremely important that the marketing
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.
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.
Market segmentation can be defined as the process of subdividing and defining a large homogenous market into a clearly noticeable segments
Terrell, E. (n.d.). Market Segmentation. (Business Reference Services, Library of Congress). Retrieved April 6, 2014, from http://www.loc.gov/rr/business/marketing/
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.
In the segmentation section the company takes into account the four bases of segmentation; geographic, demographic and psychographic and behavioural. Most prolific is the use of international idols to develop a psychographic segmentation brand management. For example, the company used Selena Gomez as its NEO style icon. The company has a very resound connection of corporate association with the different segmentation markets. Every market segment is managed by the social icon associated with it.
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
Marketing at McDonald's n.d., McDonald's Corporation, accessed 23 August 2011, http://www.mcdonalds.co.uk/static/pdf/aboutus/education/mcd_marketing.pdf>.
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...
Demographically we can segment the market into groups based on age, gender, family- size, income, family life cycle and occupation.