Market segmentation is a form of marketing strategy that usually involves splitting and dividing the targeted market or consumers into smaller sub groups of consumers who have different needs and wants for the relevant goods and services provided by the company. This type of marketing strategy allows the company to better target its products to the right consumers. (Market segmentation, 2004) Demographic and psychographic are the two types of market segmentation I would employ if I were the marketing manager for Starhub. Demographic segmentation is one which is more commonly used in modern marketing; it is when the businesses, group the consumers based on variables such as their age, gender, religion and income level. Psychographic segmentation is when the consumers are grouped based on their lifestyle choices, personality, social class and moral values. (Market segments, 2007) The marketing segment used by Starhub, Demographic segmentation. Focuses on the different ages of its consumers. Starhub is Singapore’s second biggest telecommunications company; and they were one of the first local telecommunication companies to have coined up a student plan for their younger customers. One thing they have done is to offer cheap and attractive mobile plans that appeal to students. One example of such attractive student mobile plans is the “smartsurf 100’ that offers unlimited Short Message Service (SMS) and up to 12GB of bundled data. From the psychographic aspect, we can see how Starhub has incorporated live and cable television programs into smart phones, allowing consumers to watch shows that they want to watch on the go. For example, for hardcore football fanatics, they would be able to watch live soccer matches on their mobile phone if they are not home. This service that Starhub provides allows television access to bored passengers on public transport or customers who just can’t catch the show from their home. (starhub)
There are four different types of marketing philosophies, and they are the production concept, product concept, selling concept and lastly the marketing concept. Production Concept explains that as long as the product or services is widely available, it will be able to create the demand on its own. This refers to how the supply is creating its own demand. And with higher production, cost will be lower for each product produced. Product Concept states that a consumer would seek out products that they know maintain good quality and high standards over all of its products. Some of the important tactics they use for attracting consumers range from the design of the product, its packaging and the effective distribution channels of a product. Selling Concept believes that customers would not purchase the products if the isn’t marketed in public and promoted for the consumers. In other words, it shows how the demand for a product will not necessarily be equal to the supply of that product. Marketing Concept analyses the different wants and need of the target markets. This concept highlights the fact that the supply is always greater than the demand. The company sources out for a well-defined market will create the supply that would effectively satisfy the demand of the product. The marketing management philosophy that Starhub uses is the Product concept. Starhub maintains its high standards and impressive quality by ensuring for instance, when a customer needs assistance with their starhub products; be it a cellphone or the cable television set box, they can go to any of their six customer service centers that are strategically located across the country to repair or do a one-for-one exchange for a faulty product. By setting their customer care centers, potential consumers would know that even after purchasing the product if they were in doubt and a phone call to the company would not be sufficient, they would be able to proceed to one of the service centers for assistance....