Segmentation

Satisfactory Essays
Topics: Marketing
Marketing Segmentation Theory based on selling Oxygen bars

1) Demographic
Consumer age, gender, income, occupation are considered to be the main factors for demographic segmentation. Other factors like race, religion, nationality is not emphasized here because product usage will be less affected by those factors.
Currently, similar-functioned products available in the market have a wide consumer age base, ranging from 20+ to 50+. I believe that this age difference does reflect the difference in consumer needs – it can be needed for the refreshing effect (e.g. oxygen bars used in parties mainly for 20+), or to relief stress and improve alertness for 30-40+ people who stuck in the office, or as a health care device for 50+ people, especially those with certain medical conditions.

As for gender, since males and females do show a difference in their awareness of general wellbeing, women might be the bigger group with purchasing potential for this kind of product.
Income and occupation would not only reflect people’s affordability, but in this case would also reflect the difference in their needs and wants. For example, people with a long-hour job who work on repetitive tasks might be of greater demand for this ‘refreshing’ product, compared to those who work from home on flexible hours.

2) Geographic
Since the product can provide ‘purified’ oxygen year round, geographic segmentation here would be more toward climate and air condition of different locations. For example, areas that have a poor weather condition or a serious pollution problem can have a greater demand for this product.

3) Psychographic
Since the Personal Oxygen Bar has no proven medical effect, but is rather a wellness improving product, I believe that consumers who value the concept of being 'pure, fresh, and healthy' can be segmented psychographic for it. Those consumers would have greater focus on their well being and would like to enjoy a healthier lifestyle, for example taking yoga

You May Also Find These Documents Helpful

  • Good Essays

    Segmentation

    • 636 Words
    • 3 Pages

    Chapter 8 is entitled Segmentation, Targeting, and Positioning and focuses on how companies divide their markets, how they choose which markets to pursue, and how they position their products to make them more attractive to consumers. The chapter starts of by detailing the five levels of the Segmentation, Targeting, and Positioning Process. The first two steps are a part of Segmentation and they are developing the strategies or objectives and segmentation methods. The next two steps, evaluating…

    • 636 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Segmentation

    • 769 Words
    • 3 Pages

    segmentation, targeting, positioning, differentiation and branding For many organizations today to be successful they must know what consumers needs are, so as to satisfy them successfully and profitably to avoid wastages of resources. For these organizations to be successful they have to undertake segmentation, so as to know their target market and also to know the available competitors in the market producing the same goods. As a matter of fact, for Colgate to be successful they must segment…

    • 769 Words
    • 3 Pages
    Good Essays
  • Good Essays

    segmentation

    • 1660 Words
    • 7 Pages

    Explain how and why groups of customers are targeted for selected products What is segmentation? Market segmentation is the division of a market into sub groups with similar characteristics. A business can then target these groups and develop products and services for each of them. There are several ways in which consumers can be split up into. These is geographically which includes location, demographically which includes gender, social class, age, income, ethnicity or religion, psycho graphically…

    • 1660 Words
    • 7 Pages
    Good Essays
  • Good Essays

    Segmentation

    • 1579 Words
    • 7 Pages

    Market segmentation allows businesses to satisfy the diversity in a resource-effective manner and is held up as the panacea of modern marketing (Dibb, 2001). Marketing segmentation is more and more vital for business in the modern time. This essay, therefore, tend to introduce the concept of market segmentation first, then and the merits and difficulties will be illustrated. Finally, different approaches are going to be demonstrated. Market segmentation is the process by which a diverse market…

    • 1579 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    segmentation

    • 2835 Words
    • 10 Pages

    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…

    • 2835 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Segmentation

    • 7968 Words
    • 32 Pages

    in Great Britain 0160-7383/$30.00 doi:10.1016/j.annals.2004.05.001 MARKET SEGMENTATION A Neural Network Application Jonathan Z. Bloom University of Stellenbosch, South Africa Abstract: The objective of the research is to consider a self-organizing neural network for segmenting the international tourist market to Cape Town, South Africa. A backpropagation neural network is used to complement the segmentation by generating additional knowledge based on input–output relationship and sensitivity…

    • 7968 Words
    • 32 Pages
    Powerful Essays
  • Satisfactory Essays

    Segmentation

    • 450 Words
    • 2 Pages

    SEGMENTATION (Harish pg3) The process of defining and subdividing a large homogenous market in to clearly identifiable segments having similar needs, wants or demand characteristics .Its objective is to design a marketing mix that precisely matches the expectation of customers in the targeted markets. Bases for segmentation Geographic segmentation -: Geographic segmentation calls for division of market in to different geographical units such as nations, states, regions…

    • 450 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Segmentation

    • 4260 Words
    • 18 Pages

    Market Segmentation Of Pepsi At An International Level The history of Pepsi-Cola starts in 1896 in the town of New Bern in North Carolina, USA in a drugstore owned by the pharmacist Caleb Bradham. He came up with many recipes of new drinks to be served at the soda fountain of his drugstore. Brad ham aim was to create a drink both delicious, healthy, aiding digestion and boosting energy. It would be free of impurities and it should not contain any strong narcotics. Eventually one of his drinks became…

    • 4260 Words
    • 18 Pages
    Better Essays
  • Good Essays

    market segmentation Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs (and/or common desires) as well as common applications for the relevant goods and services. Depending on the specific characteristics of the product, these subsets may be divided by criteria such as age and gender, or other distinctions, such as location or income. Marketing campaigns can then be designed and implemented to target these specific…

    • 683 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Geographic Segmentation Geographic segmentation calls for dividing the market into different geographical units such as nations, regions, states, counties, cities, or even neighborhoods. A company may decide to operate in one or a few geographical areas, or to operate in all areas but pay attention to geo-graphical differences in needs and wants. ACI Logistic Ltd (shwapno) today is localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions…

    • 322 Words
    • 2 Pages
    Satisfactory Essays