Discuss the strategy of market segmentation, and some of the reasons marketers are employing such techniques. Are there any ethical issues involved in this strategy?
There are many strategies in market segmentation. Market segmentation is done in efforts to better target productive markets for companies to pursue. Through doing an opportunity analysis companies can determine which areas the company believes that consumers need and opportunities are not being met or satisfied. This would increase the likely hood of creating a profit. It is important to tailor marketing to meet the needs and demands of different market segments.
There are many different types of market segments. These include geographic segmentation, demographic segmentation, psychographic segmentation, and behavioristic segmentation. Geographic segmentation is a type of regional segmentation. This would include the different cultural issues that include the types of food and drinks people consume attitudes toward foreign products and such. Demographic segmentation consists more involving the ages of people, their race, sex, education and social class. Psychographic segmentation divides the market up into life styles. Finally behavioral segregation divides people up by their brand loyalties, and buying responses.
Marketers employee these different kinds of strategies simply because they work. The more you know about the demographic that you are targeting the more you will be able to affectively “talk” to them. If you don’t understand the segment you are trying to sell a product or service to then you won’t understand what they want. This is even more reason to break the market into segments. No product or service is going to fit everyone. It is a waste of time and money to market to the vast majority of the population in a generalized campaign. The 80-20 rule is the fact of how most of the products anyone markets are purchased; 80% of their sales are bought by 20%...