Market Segmentation

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  • Topic: Marketing, Marketing strategy, Market segmentation
  • Pages : 7 (1855 words )
  • Download(s) : 383
  • Published : January 10, 2013
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Find a product of two example businesses in your country or region, from your own experience or from your reading. If you cannot find such examples, use one or two case studies from your textbook or obtain one or two case studies from your local lecturer. Be sure to cite and reference the name and source of your case(s) in your assignment report. The product of one business should be mainly a good and the product of the other business should be mainly a service.

a) Explain how the example businesses have segmented the market for its major product and what its marketing mix strategies are.

b) If you were the marketing managers involved, what parts of (i) would you do the same and what would you do differently? Why?

EXECUTIVE SUMMARY

Market Segmentation is an essential part of the Marketing Strategy. It allows organisation to effectively target the relevant groups of consumers, allowing for the creation of a more effective marketing strategy. The strategy will guide a company to better satisfy the needs and wants of customers while creating value, be it for a product or service.

TABLE OF CONTENTS

1.IntroductionPage 5

a) Explain how the example businesses have segmented the market for its major Page 6 product and what its marketing mix strategies are.

2.Market Segmentation
a.A ServicePage 6
b.A ProductPage 8

b) If you were the marketing managers involved, what parts of (i) would you do the same and what would you do differently? Why?Page 11

3.ConclusionPage 12
4.ReferencesPage 13

INTRODUCTION

The basic idea of marketing is the process of identifying and satisfying the needs and wants of customers preferably at a profit. These needs can be tangible or intangible in nature and can be satisfied by a product or a service.

When marketing for a product or service, one must understand the difference in order to develop the right approach. While a product is something physical that can be seen, held, tasted, stored, a service is immaterial, it exists only at the point in which it is used, it is a profitable activity that can be at times be difficult to identify since it is closely associated with a product.

In this project, I will identify both a product and service and show how their respective businesses have been able to segment the relevant markets and how they were able to consider the marketing mix strategies. I will also analyse how effective their approach was and if there was room for improvement in their approach.

The need for identifying market segmentation is best decribed in the text book Marketing – An Introduction by Gary Armstrong and Philip Kotler – ‘Companies today recognize they cannot appeal to all buyers in the marketplace, or at least not to all buyers in the same way. Buyers are too numerous, too widely scattered, and too varied in their needs and buying practices… …Most companies have moved away from mass marketing and toward target marketing: identify market segments, selecting one or more of them, and developing products and marketing programs tailored to each. Instead of scattering their marketing efforts (the “shotgun” approach), firms are focusing on the buyers who have greater interest in the values they create (the “rifle” approach).’

a) Explain how the example businesses have segmented the market for its major product and what its marketing mix strategies are.

1.Market Segmentation
A company cannot provide a product or service to satisfy the needs of everyone, therefore when devising a marketing plan for a new product or service, the company will seek to divide the market into smaller sections of consumers with certain specific factors in common. This is known as market segmentation. The four most common areas for market segmentation are demographic, geographic, psychological, and behavioural. A company having segmented a...
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