Market Segmentation

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As we all know each and everyone in this world has their own needs and wants and from that we can tell that people’s needs and wants are met in different ways. Therefore in this situation, companies have to make desicions on how to attract their target customers. This can be done through market segmentation in order for the company to achieve their target. Market segmentation refers to a marketing concept which divides complete market into smaller segments. One market segment is totally distint from the other segment, therefore each company has to design a business tool or known as marketing mix that precisely matches the expectations of consumers in the targeted segments. All together, there are four basic market segmentation-strategies which are behavioral, demographic, psychographic and geographical. Next step which will bring us to the part where a company have to select their target market. Target market is a group of people that share the same needs that the company decides to provide. Therefore, identifying the target market is one of the step to develope a marketing plan. Targeting strategies are divided into four categories which are undifferentiated marketing, differentiated marketing, concentrated marketing and the last one will be micromarketing. By using this strategies, a company can decide whether to target very broadly, very narrowly or somewhere in between. The last step will be positioning strategies. The full positioning of a brand is called the brand’s value proposition. There are five value proposition which are more price for more benefits, same price for more benefits, less price for more benefits, less price for same benefits and less price for less benefits. Next we will come in detail on how company apply these strategies in real market. I have chosen TGI Fridays for

Market Segmentation
* Behavioral Segmentation

This segmentation divides customers into groups based on the way they respond to, use or know a product, I will describe in detail on how this behavioral segmentation works in TGI Fridays. Behavioral segmentations can be divided into a few categories such as occasions, benefits and user status. In terms of occasions, TGI Fridays serves customers in regular occasion and special occasions. As we all know regular occasion is a daily basis on serving the customers as stated in the tagline of the company itself “In Here It’s Always Friday”. Special occasion also known as special event such as birthday party that TGI Fridays provided for their special customers, they will celebrate together and entertain their customer who decided to celebrate at TGI Fridays. In terms of benefits, TGI Fridays concentrate more on quality, service and convenience. TGI Fridays is one of the food and beverage company that provides high quality of food, they serve fresh appetizers, juicy burgers and delicious desserts. Instead of providing a high quality of food, TGI Fridays has done a god job in terms of service. They serve their customers well as other companies in food and beverage. Besides that, TGI Fridays is one of the top western restaurant that provides a convenience place for their customers to rest or relax with family or friends while having their meal. The last categories will be user status. TGI Fridays is known as one of the best restaurant around the world, and what mostly this kind of restaurant will do is that they will try to retain their regular customers and focus more to attract potential customer.

* Demographic Segmentation
This segmentation divides the market into segments based on variables such as age, income and family life cycle. As you might expect, this segmentation are amongst the most popular segmentation, this is obviously because customers wants are closely linked to variables such as income and age. Let’s take a closer look on how company such as TGI Fridays target in terms of age. As we can see age can be divided into a few...
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