Title: Target Market Report : Beyonce
Name: William Heng Wui Seng
Student ID: HWWSD101
Lecturer: Mr. Chris Bright
Class time: Wednesday, 1.30pm – 5.30pm
1.0 Segmentation Theory.
Market segmentation is a concept in economics and marketing. It is a strategy that involves dividing a larger market into subsets of consumers who have common needs and applications for the goods and services offered in the market. `What’ is market segmentation’ ( Tatum, 2010). Market segmentation is used by all businesses and organization regardless of its mass. A relatively small firm should use market segmentation to find a niche in the marketplace because it is realistically impossible for a small firm to compete against a much bigger firm in marketing the similar product. For example, magine the difficulties in developing a new brand of cola and competing against Coke and Pepsi. So by finding a small niche in the marketplace, it’ll be a much more successful approach. For example, this is what Snapple and Tom’s Of Maine toothpaste did. `Market Segmentation and Targeting’ (Journal of Internet Commerce, 2007, 6(1), 83-99.) `Weinstein(2004, 3) claimed that’ the overall purpose of using market segmentation is to improve a company’s competitive positon and better serve the needs of the customers. Other objectives of market segmentation includes increasing sales, improved market share and also to enhanced the image and reputation of the business. On top of that, market segmentation can also help businesses to Differentiate your products and services to meet your customer needs and desire, find hidden needs and make improvements to your existing products, Target your marketing mix to the customers most likely to want your products or services, Identify behaviors and buying motives for your products, Identify your most and least profitable customers, Help you avoid unprofitable markets and Increase brand loyalty and decrease brand switching. `Market’ segmentation services’ (Goldberg, 2008). There is no single way segment a market. A marketer has to try to different segmentation variables , alone and in combination to find the best way to view the market structure. There are three type of variables that marketers look at when they segment the market. Variables such as geographic, demographic, pyschographic and behavioral variables. Geographic segmentations calls for dividing the market into different geographical units such as nations, regions, province, parishes, cities, or even neighborhoods. Depending on its budget, a company may decide to operate in one or a few geographical areas or to operate in all areas but pay attention to geographical differences in needs and wants. The other segmentation variable that marketers look at is demographic segmentation. Demographic segmentation is when company divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation and nationality. These different criteria’s differentiates the needs and wants from each individual consumer. Other than that, companies also look at psychographic segmentation. Psychographic segmentation divides buyers into different group based on social class, lifestyle, or personality characteristics. Last but not least, behavioural segmentation divides consumers into group based on consumer knowledge, attitudes, uses, or the responses to a product. (Kotler and Armstrong 2010, 216).
2.0 Target market identification.
The primary target for this report would be Beyonce Giselle Knowless, known as Beyonce internationally. Beyonce is an actress, model and a renown r&b artist. Beyonce first started her recording career with 2 other female artist, Kelly Rowland and Michelle Williams in a group called `destiny child’ and later on went solo in the year 2000. As someone who is fond of fashion, Knowles combines its artistic...