To reach different markets or to promote your products to different locations or people one has to use a method called market segmentation. "Market segmentation describes the division of a market into homogenous groups which will respond differently to promotions, communications, advertising and other marketing mix variable" (Cumming). Market segmentation is extremely important for companies around the world. If a company doesn't research the area in which they are going to market or they put a product that is either to expensive or to elaborate in an area that can't afford that then they will fail as a company. In my paper I will discussion why market segmentation is used in around the world, the types of segmentation, some techniques used to make segmentation work the best.
Market segmentation is to divide the market into smaller segments. The reason for dividing the market is to make it easier to address the needs of smaller groups of customers, particularly if they have many characteristics in common (Breen). It is easier if you find things in common that are the same such age, gender, benefits, lifestyles, etc. We also use market segmentation to find niches or to identify under-served or un-served markets. "Using niche marketing, segmentation can allow a new company or new product to target less contested buyers and help a mature product seek new buyers" (Cumming). Niche marketing can also take a normally large, identifiable group within a market, break it into sub groups so marketing can become easier. Niching offers smaller companies an opportunity to compete by forcing their limited resources on serving niches that may be unimportant to or overlooked by larger competitors (Mariotti). In many markets today, niches are normal, as agency executive observed, "There will be no market for products that everybody likes a little, and only for products that somebody likes a lot (Mariotti). Market segmentation is also used to be efficient. "More efficient use of marketing resources by focusing on the best segments for your offering product, price, promotion, and place (distribution). Segmentation can help you avoid sending the wrong message or sending your message to the wrong people" (Klein). The question is when do we use market segmentation. The answer is, anytime you suspect there are significant, measurable differences in your market, you should consider market segmentation.
There are things you should consider to see if a market must be segmented. The markets must be large enough to be segmented, if you try to split an already small market it won't work. Differences must exist between members of the market and these differences must be measurable through traditional data collection methods (McElligott). Once the market is segmented, you must be able to design marketing communications that address the needs of the specific segments. If you can't develop promotions and advertising are specific to each segment, there is little value in having those segments. Each segment must be reachable through one or more media. You must be able to get your message in front of the right market segments for it to be effective. If your were marketing to one-eyed, green aliens then you should invented a market to reach these aliens. Segments must not only be differing on demographic and psychographics characteristics, they must differ on the benefits sough from the product (Mariotti). If everyone wants the same things from your product, there is no reason to segment buyers. The expected profits from expanding your markets and more effectively reaching buyer segments must exceed the costs of developing multiple marketing programs, re-designing existing product and/or creating new products to reach those segments (Cumming).
Consumer Markets can be segmented into many different parts in order to sell the product the most effectively. Geographic segmentation calls for dividing the market into different...
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