Dell Segmentation and Targeting

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Need for segmentation:-
The importance of market segmentation results from the fact that the buyers of a product or a service are no homogenous group. Actually, every buyer has individual needs, preferences, resources and behaviors. Since it is virtually impossible to cater for every customer’s individual characteristics, marketers group customers to market segments by variables they have in common. These common characteristics allow developing a standardized marketing mix for all customers in this segment.  Market segmentation is the segmentation of markets into homogenous groups of customers, each of them reacting differently to promotion, communication, pricing and other variables of the marketing mix. Market segments should be formed in that way that differences between buyers within each segment are as small as possible. Thus, every segment can be addressed with an individually targeted marketing mix. Major segmentation variables:

1) Geographic:-

Dell is targeting the small and medium businesses (SMB) in smaller towns in India as its main driver for growth as the company believes this market sector is growing rapidly and is not exposed to global shocks making it a much more stable market.Dell has expanded its presence to about 600 tier-II and tier-III cities.

2) Demographic:-

(i)Age:- It mainly focussed the age group between 23 to 60 years. (ii)Occupation:- Mobile Small and Medium Business professionals. (iii)Education:- graduate/post graduate(professioanls).
(iv)Income:-Middle class

3) Behavioral:-

Vostro Series are feature packed appropriate enough for the computing needs of the small businesses,offering a reliable performance coupled with the enhanced security. The models are also lightweight and compact enough for a hassle free carry. Some of the models are ideally suitable for graphic computing. It also extends the advantage of affordability to the customers that come with a no compromise experience.

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