For a company or business to effectively respond to different customers needs and wants in order to increase sales, they make use of market segmentation. Market segmentation as defined by Kerin, author of Marketing, 10e; involves grouping potential customers who have common needs and will respond similarly to a marketing action. In further elaboration to define segmentation, if there is a demographic group of customers who are all on diets and are watching their weight (common needs/desires) and a business markets the segment of dark chocolate as a healthier option to satisfy sweet cravings, this would be an example of market segmentation. On the same token if a company were to market the medical and health benefits of dark chocolate, a demographic that would similarly respond to this marketing action would be the health-conscious demographic. There are a few different segmentation basis’s that are relevant to chocolate bars, it is a multiple product aimed at multiple market segment industry, a few segments that can be used in the chocolate industry are demographic, psychographic, and behavioral. Demographic includes age (kids are more likely to chocolate than adults), gender (Females are more likely to have cravings for chocolate than males are), and life stage (parents with young children are likely to purchase chocolate). Psychographic segmentation includes personality (compulsive buyers, people with a sweet tooth, etc), lifestyle (single people dating will buy chocolates for dates), and needs (health needs such as diabetes would need a sugar free chocolate bar). Behavioral... Read Full Essay
The iPod was innovated by Tony Fadell, a former employee of General Magic and Phillips. Fadell wanted to bring a player by using small hard-drive player that can be link to a delivery system where users can obtain or download music legally (Hormby and Knight. 2005). In October 2001, Apple announced their first strike into the digital music market by announcing the iPod. The iPod was a hard disk based digital music where when compare to the portable tape decks, it was smaller. The iPod could compete with both the flash-based player and hard disk based player. Apple was able to make the iPod smaller by using a 1.8" hard disk. Apple believed that the iPod represented the perfect combination between both size and storage capacity. Beside size and capacity, iPod also had impressive industrial design where it has been missing from the other hard disk players in the market. Apple also believed that the iPod is such a potential product because if Apple misjudged the market, the iPod might be another G4 Cube in its hands. It turned out to be that Apple judged the market very well and the iPod has sold better then anyone had ever expected (iPod n.d.). The demographic segmentation is based on the United States of America market by age, gender, income and ethnic background. In a report by Pew Internet and American Life Project, twenty-two millions of adults owning iPod, thirteen percent of men own the player compared to nine percent of women. Sixteen percent of African-Americans and English speaking Latinos own iPod compared to ni1.1. Behavioural Segmentation: Kotler (2007), discuss about behavioural segmentation that is dividing a market into groups based on consumer knowledge, attitude, use or response to a product. Apple uses this segment technique very smartly by the innovations that lead to brand switching. Firstly, Apple introduced its iphone 3 by considering consumer’s behaviour, their attitudes towards new technological changes. What consumer aspects from the one smart-phone that provides multifunction facilities. Innovations of new features can appeal and influence in the behaviour of customers. Iphone with its new technological features combines three products into one small and lightweight handheld device. Iphone 3 is a mobile phone with a widescreen iPod, and the availability of Internet in your pocket with best-ever...
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