Market Segmentation
INTRODUCTION :
As we all know each and everyone in this world has their own needs and wants and from that we can tell that people’s needs and wants are met in different ways. Therefore in this situation, companies have to make desicions on how to attract their target customers. This can be done through market segmentation in order for the company to achieve their target.
Market segmentation refers to a marketing concept which divides complete market into smaller segments. One market segment is totally distint from the other segment, therefore each company has to design a business tool or known as marketing mix that precisely matches the expectations of consumers in the targeted segments. All together, there are four basic market segmentation-strategies which are behavioral, demographic, psychographic and geographical.
Next step which will bring us to the part where a company have to select their target market. Target market is a group of people that share the same needs that the company decides to provide. Therefore, identifying the target market is one of the step to develope a marketing plan. Targeting strategies are divided into four categories which are undifferentiated marketing, differentiated marketing, concentrated marketing and the last one will be micromarketing. By using this strategies, a company can decide whether to target very broadly, very narrowly or somewhere in between.
The last step will be positioning strategies. The full positioning of a brand is called the brand’s value proposition. There are five value proposition which are more price for more benefits, same price for more benefits, less price for more benefits, less price for same benefits and less price for less benefits.
Next we will come in detail on how company apply these strategies in real market. I have chosen TGI Fridays for
TGI FRIDAYS
Market Segmentation * Behavioral Segmentation
This segmentation divides customers into groups based on the way they respond
As we all know each and everyone in this world has their own needs and wants and from that we can tell that people’s needs and wants are met in different ways. Therefore in this situation, companies have to make desicions on how to attract their target customers. This can be done through market segmentation in order for the company to achieve their target.
Market segmentation refers to a marketing concept which divides complete market into smaller segments. One market segment is totally distint from the other segment, therefore each company has to design a business tool or known as marketing mix that precisely matches the expectations of consumers in the targeted segments. All together, there are four basic market segmentation-strategies which are behavioral, demographic, psychographic and geographical.
Next step which will bring us to the part where a company have to select their target market. Target market is a group of people that share the same needs that the company decides to provide. Therefore, identifying the target market is one of the step to develope a marketing plan. Targeting strategies are divided into four categories which are undifferentiated marketing, differentiated marketing, concentrated marketing and the last one will be micromarketing. By using this strategies, a company can decide whether to target very broadly, very narrowly or somewhere in between.
The last step will be positioning strategies. The full positioning of a brand is called the brand’s value proposition. There are five value proposition which are more price for more benefits, same price for more benefits, less price for more benefits, less price for same benefits and less price for less benefits.
Next we will come in detail on how company apply these strategies in real market. I have chosen TGI Fridays for
TGI FRIDAYS
Market Segmentation * Behavioral Segmentation
This segmentation divides customers into groups based on the way they respond