List and describe the main benefits markets receive by segmenting markets. Give examples of how these benefits may be realize.
The market develops from mass marketing and product-variety marketing to target marketing. In mass marketing, the seller mass produces, mass distributes and mass promotes one product to all buyers. At one time, Sony product only one type of television for the whole market, thus create hard selling. Product-variety marketing, the seller produces two or more products that have different features, styles, quality, sizes and so on. Later, Sony produced several of television sets with different screen sizes and outside frame (casing) colors. However, customers have different needs that change over time. Customers seek variety and change. Target market, the seller identifies market segments, selects one or more of them, and develops products and marketing mixes tailored to each. For example, the Sony Company now produces television sets for the home entertainment segment, the fashion segment, the convenience segment, and the technology enthusiasts. Target marketing can help sellers to find their marketing opportunities more efficiently. Sellers can develop the right product for each target market and adjust their prices, distribution channels and advertising to reach the target market efficiently. Instead of scattering their marketing efforts, they can focus on the buyers who have greater purchase interest. Segmenting the markets can help company make more profit as they know who they are target to, and what their needs and wants from them. Markets consist of buyers, and buyers differ in one or more ways. They may differ in their wants, resources, locations, buying attitudes and buying practices. Because buyers have unique needs and wants, each buyer in potentially a separate market. Ideally, then, a seller might design a separate marketing program for each buyer. However, most sellers face larger numbers of smaller buyers and do not find complete segmentation worthwhile. Instead, they look for broad classes of buyers who differ in their product needs or buying responses.
1. The process of segmentation includes three phases each having two steps. Describe this process using examples of a common product or service throughout the process.
Marketing segmentation dividing a market into distinct groups of buyers with different needs, characteristics or behavior who might require separate products or marketing mixes. The company identifies different ways to segment the market and develops profiles of the resulting market segments. This process include identify bases for segmenting the market and develop profiles of resulting segments. It is the most basic process for company starts their marketing. There is no single way to segment a market. A marketer has to try different segmentation variables, alone and in combination, to find the best way to view the market structure. Here are four major ways to segmenting the consumer markets, geographic, demographic, psychographic and behavioral variables. For examples, the Sony Company set up a research for the market to find out what their customer needs and wants from them. They conduct their research in different country for different groups of people (gender, age, family size and so on). The second step is market targeting- evaluating each market segment’s attractiveness and selecting one or more of the market segments to enter. The market targeting include develop measures of segment attractiveness and select the target segments. In evaluating different market segments, a company must look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources. After that, company selecting market segment in various strategies such as undifferentiated marketing, differentiated marketing and concentrated marketing. After conduct the research, Sony can collect their result and find out which group is the most...