Preview

Marketing Segmentation

Powerful Essays
Open Document
Open Document
1842 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Marketing Segmentation
Marketing 100
Assignment 1

Title: Target Market Report : Beyonce

Name: William Heng Wui Seng
Student ID: HWWSD101
Lecturer: Mr. Chris Bright
Class time: Wednesday, 1.30pm – 5.30pm

Market Segmentation.

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

You May Also Find These Documents Helpful

  • Better Essays

    “Market segmentation is a two-step process of (1) naming broad product-markets and (2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes” (Perreault, Cannon, & McCarthy, 2011, p. 92). To complete successful market segmentation an organization must gather information on potential customers, divide the population into various market segments, estimate the most profitable segments, and rank the market segments by potential sales. This process is imperative during the marketing process because it distinguishes…

    • 1524 Words
    • 7 Pages
    Better Essays
  • Satisfactory Essays

    2. Market Segmentation involves dividing a large market into subgroups of customers with similar needs and requests for goods and services. These subgroups are identified by many demographic situations, depending on what it is that the marketer is segmenting them for. Marketing campaigns can then be developed around the needs and wants of the subgroups. The main and basic reason for market segmentation is to help a company understand what the needs are of its customer base. Often by segregating consumers by specific criteria a company can identify other functions for their products that may or may not have been recognizable before. Identifying these other ideas for use of goods and services may help the company target a larger segmentation in that same demographic classification and thus increase market share among a specific sub market…

    • 300 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    The fundamental component of Market segmentation is a market-based strategy. A market segment is a purchase behaviors and different descriptive characteristics and specific group of customers with distinctive customer needs (Baker M.J, 1995) By categorizing markets into sub sectors, targeting marketing effort in such a way as to meet the other requirement and technical requirements of each of these, organizations may be able to secure big competitive position than if they attempted to satisfy the fundamental requirements of the market as a whole. In market segmentation there are four criteria that have to be satisfied in order for market segmentation to be effective. A market segment should be accessible, identifiable, substantial, and stable. In Identifiable, there should be indicators of observable that enable the segment to be defined and quantified (Baker M.J, 1995). Accessible, that is, it should be probable to target specifically the segment using distribution channels and existing communication. In Substantial, that the segment should be of enough size to make the effort involved in segmentation worthwhile. In the Stable, the segment there should be capitalized by sufficient time on the investment implicated in segmentation (Baker M.J, 1995).…

    • 1889 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    MARKET SEGMENTATION

    • 4820 Words
    • 14 Pages

    Market segmentation provides businesses with the possibility of customizing a unique set of elements known as the 4P’s (product, price, place, and promotion) for specific target markets. Therefore, it allows them to satisfy their customers’ needs in a more effective way, through a value proposition that is potentially superior to that of any other competitor. Market segmentation refers then to the process of defining and breaking down a wide market into clearly identifiable and homogeneous groups of consumers with similar characteristics, wants, and needs.…

    • 4820 Words
    • 14 Pages
    Powerful Essays
  • Satisfactory Essays

    Market Segmentation

    • 354 Words
    • 2 Pages

    Market segmentation is an essential part in today's business world. It is because not all customers have the same requirement and a market strategy which does not recognize this fact will result business failure. Market segmentation is the process of splitting customers, or potential customers within a market into different groups, or segments, within which customers have the same or similar requirements satisfied by a distinct marketing mix. Nike has been successful in market segmentation for selling their soccer boots, which resulted in a significant market share in that particular product category in recent years.…

    • 354 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Market segmentation allows more effective means and methods of advertising, price control of forms and methods of sale. Its meaning lies in the fact that the company does not spray, and focuses…

    • 1003 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Market Segmentation

    • 433 Words
    • 2 Pages

    Market segmentation is the division of the total market into smaller, relatively homogeneous groups. It is necessary to segment or classify the various people or institutions in order to identify those with sufficient purchasing power, authority, and willingness to buy. Because no single marketing mix can satisfy all marketing segments, it is important to establish target markets and apply the appropriate marketing strategies in order to maximize market share.…

    • 433 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Companies need to segment their market for different reasons. Before one market 's products or services, one needs to understand their customers, and find ways and means to satisfy their wants. This is imperative to stay ahead of the competition and build the brand. This is done through extensive market research. Although it is not possible to satisfy individual needs and even to understand all of them, a clearly defined market segmentation strategy will help create a market to cater to groups of individuals that will make economic sense to mass produce and distribute. The concept of target market segmentation strategy also falls under the blanket of market segmentation, except the former recognizes and understands the diversity of customers and provides them with products and services that suit their specific requirements (McDaniels & Kolari, 2008). A successful market strategy strives to understand different segments and its different needs; works on the exhibited common wants and responds immediately.…

    • 850 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    A market segment consists of a group of customers who share a similar set of needs and wants. Market segmentation is important not only for creating consumers but also for satisfying them. Market segmentation helps matching of market opportunities to the resources of the company and enables them to face market competition effectively. It raises marketing efficiency through proper adjustment of marketing mix for each market segment. Market segmentation is one important element of marketing management where the company can decide which one(s) to target.…

    • 2833 Words
    • 12 Pages
    Powerful Essays
  • Best Essays

    Nivea Marketing Research

    • 1345 Words
    • 6 Pages

    Market segmentation is the key strategic concept in marketing today (Michael N. Tuma, 2011). It is shows as the attempt to distinguish 'homogeneous groups of customers who can be targeted in the same manner because they have similar needs and preferences'. (Wedel & Kamakura, 2002). Good market segmentations helps in understanding the market, the ability to predict buying behaviour accurately and increased profit of companny.…

    • 1345 Words
    • 6 Pages
    Best Essays
  • Good Essays

    Market segmentation “is the process of dividing the market into specific segments” (Barringer and Ireland 2012, Page 150). Market segmentation allows the organization to focus on specific segments or target markets to which the firm will try to appeal to and sell their products and services. By defining the target market, the organization can customize its services to better match the needs of that specific market segment.…

    • 929 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Market Segmentation

    • 280 Words
    • 2 Pages

    of its users are in India and Brazil. Orkut is the most visited website in Brazil and second…

    • 280 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    marketing segmentation

    • 782 Words
    • 4 Pages

    1.Understand the concept of micro environment for a business organization and the role/influence of its stakeholders…

    • 782 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Market Segmentation Notes

    • 1634 Words
    • 7 Pages

    One of the main reasons for using market segmentation is to help companies to better understand the needs of a specific customer base. Mass marketing assumes that all customers are the same and will respond to the same advertising. By looking at ways in which potential customer groups are different from each other, the marketing message can be better targeted to the needs and wants of those people.…

    • 1634 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    Marketing Segmentation

    • 498 Words
    • 2 Pages

    “ Basic marketing strategies consisting of market penetration, market development, product development, or diversification. Market development is a strategy involving the search for and exploitation of new markets for a product. Diversification is the process in which a company begins to engage in a new and different type of business. Market penetration is the percentage of a total market which the sales of a company cover. Product development is the process of improving an existing product line to meet the needs of the market” (Marketing Strategies, 2011).…

    • 498 Words
    • 2 Pages
    Satisfactory Essays

Related Topics