Market Segmentation

Market Segmentation
The Target Market Concept
Markets are heterogeneous – that is, there are many different customers all with their own individual needs and wants. To better serve customer needs, marketing implements a target market. Elliot, Rundle-Theile and Waller (2010)pg 18 explain this to be a group of customers with similar needs and wants as to narrow their thinking and focus on the specific needs of each target group rather than on each individual customer. This creates synergies making the overall strategy more effective.
Marketing Strategies
There are three main areas marketing strategies will focus on: mass, one-to-one and target marketing.
Mass Marketing
Mass marketing involves an undifferentiated approach. It sees the marketing strategy meet the needs of most customers in the market. In most cases it is produced in large volumes and at low cost.
For BCC to use this strategy,
One-to-one Marketing
One-to-one marketing however involves appealing to each individual clients’ needs and wants (differentiated) and building close relationships with those clients. It is a strategy that relies on loyalty and repeat purchasing, but also positive feedback via word-of-mouth from existing clients. This approach often lends itself to higher costs and confined possible market.
For BCC to use this strategy,
Target Marketing
Target marketing however, is defined by Elliot, Rundle-Theile and Waller (2010),Pg 170 as an approach to marketing based on identifying, understanding and developing an offering for those segments of the total market that the organisation can best serve.
A well-defined target market is the first step in a successful marketing strategy. Once defined and implemented with the marketing-mix variables, BCC will be able to ensure the success of their product in the marketplace. Hence it is crucial that the correct segments are identified, as they will achieve the highest volume of customers with the lowest possible production and marketing... [continues]

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