Title: market segmentation
P5 Explain how and why groups of customers are targeted for selected product
Market segmentation: The process of splitting customers, or potential customers, in a market into different groups, or segments, within which customers share a similar level of interest in the same or comparable set of needs satisfied by a distinct marketing proposition. IPod shuffle: These products are targeted to students, young adults, people with low income and dynamic people. Music, size, low cost for a top brand, accessible, all these influences customers to purchase the product. The product is targeted to young adults and students who have an accessible income or choose to use the product for certain purpose, might be listening to music. They need to make sure that their product is reaching its targeted audience by the right way of communication with the customers within the market. The business must make sure that the product is released within the right area in which they can operate and maximise profit. The organisation segments the market by using demographic (age, income, occupation etc.) The importance of segmentation is to understand the customer needs and wants, right product, in the right place at the right price with the right promotion. So the company will know who their market target is and who to sell their product to. The base of segmentation is demographic. Tesco valued baked beans: This product is targeted to families, single parent on benefit and student. The quality, scheme, brand, size and packaging influence people to buy the product. The product is targeted at these consumers because the families and single parent would buy the good because they are cheap and profitable; they are also easy to access. They target people with low income while the organization aim is to make the product cheap so that people with low income will afford to buy it. The market is segmented using demographic (age,...