Identify and Describe at Least Six Markwt Segments

Topics: Marketing, Psychographic, Market segmentation Pages: 8 (2085 words) Published: May 18, 2013
Task P5
‘Explain how and why groups of customers are targeted for selected products’ Customers are people who buy products and services from other people (usually companies of one sort or another). What customers think and feel about a company and/or its products is a key aspect of business success. Attitudes are shaped by experience of the product, the opinions of friends, direct dealings with the company, and the advertising and other representations of the company. Irrespective of whether a business' customers are consumers or organisations, it is the job of marketers to understand the needs of their customers. In doing so they can develop goods or services which meet their needs more precisely than their competitors. The problem is that the process of buying a product is more complex than it might at first appear. Customers do not usually make purchases without thinking carefully about their requirements. Wherever there is choice, decisions are involved, and these may be influenced by constantly changing motives. The organisation that can understand why customers make decisions such as who buys, what they buy and how they buy will, by catering more closely for customer’s needs, become potentially more successful. Term buyer are ones who purchases goods or services; also called customer. A consumer makes purchases for his or her own use or purpose. A professional buyer makes bulk purchases on behalf of a retailer or wholesaler. A media buyer purchases media space or time for an advertiser. Factors That Influence Consumer Purchasing Decisions

Factors that influence consumer purchasing decisions are price, income, credit facilities, reference groups, and need satisfaction, (, 2005-2012). I believe a factor that is most important is the ‘needs satisfaction.’ According to, 2005-2012, Maslow’s theory of motivation suggests that human beings seek to satisfy lower needs and then the higher needs:

1. Physiological needs- this includes the basic needs such as food and shelter 2. Safety- this include shelter and the needs to protect one from danger 3. Affection- these are the needs for one to belong to certain groups or family 4. Self-esteem- these are the needs for recognition and dignity 5. Self-actualization- these are the needs to realize our full potential

As we saw fuel prices rise, there was less traveling involved, thus this affected airline companies and vacation destinations. For the most part, people need to feel secure with basic needs, such as food, shelter, gas, etc. before making big purchasing decisions. A bad example of this would be the housing market. Many banks were lending money to people who could not afford to make the monthly payments. I do not know whether the people knew this or the bankers convinced them they could make the payments. Somewhere they must have felt ‘secure.’ Some factors markets can be segmented are environment, demographic, and culture. For example, it does not snow where I live and it is about 100 degrees until winter. There have been some years where we are wearing flip-flips and shorts in December. It would be ridiculous to have ski wear or extreme winter clothing here. Another example is, Whole Foods Market. Market segment

Segmentation refers to a process of bifurcating or dividing a large unit into various small units which have more or less similar or related characteristics.
Market Segmentation
■Market segmentation is a marketing concept which divides the complete market set up into smaller subsets comprising of consumers with a similar taste, demand and preference. ■A market segment is a small unit within a large market comprising of like-minded individuals. ■One market segment is totally distinct from the other segment. ■A market segment comprises of individuals who think on the same lines and have similar interests. ■The individuals from the same segment respond in a similar way to the fluctuations in the market. Basis of...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Identify And Describe Essay
  • Describe The Market Segment Essay
  • How Companies Identify Attractive Market Segments and Choose a Target Marketing Strategy. Essay
  • Essay on Identify and Describe Different Forms of Communication
  • Essay on Segments
  • market segment Essay
  • Identify and describe the factors that Essay
  • Identify and Describe a Challanging Behaviour Essay

Become a StudyMode Member

Sign Up - It's Free