Segmentation and Target Market Paper.

Topics: Marketing, Market segmentation, Target market Pages: 8 (1889 words) Published: October 12, 2014
MARKET SEGMENTATION
Write a white paper on a company of your choice and discuss the market segmentation within that industry along with the target market for the company and the selection process for that target market.  Required Elements:

No more than 2100 words
Include demographic, psychographic, geographic, and behavioral characteristics for the selected company. A positioning statement for the company with careful consideration of their brand and strategy Paper is consistent with APA guidelines.

Introduction:
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). Brief Discussion:

Using a variety of philosophical approaches markets can be segmented in terms of operationalzing these approaches, demographic approaches, psychographic approaches, geographic approaches, and behavioral approaches and are commonly used (Dann S. & Dann S. 2004). Demographic Approaches:

There are a much number of demographic-related bases for market segmenting such as gender, age, the stage in the family life-cycle, household and ethnic group composition. Gender is also generally used basis for segmenting markets as it is an easy one to measure and the firms can have a reasonably good idea of the gender-specific market in any given area. In market segmentation age is one of the most widely used bases which is generally easy to measure the size of segments. Usually Individuals go through a number of family roles, and that at each stage of development, an individual’s buying behaviors are likely to change as well as their ability to pay for those purchases will also change. Households differ in their composition and size in which these differences are associated with varied buying behavior. Various ethnic groups in there are evidence that retain distinctive preferences in their purchases which distinguishes them from the native community (Dann S. & Dann S. 2004). Geographic Approaches:

The geographic approaches have commonly used as a basis for market segmentation. Very often, there have been very good geographical logic of why the preferences of product should vary between regions. In the world most of the companies have managed to adapt their product offer to meet the needs of various regional segments. Behavioral Approaches:

In behavioral approaches a social class the most measurable indicators that are commonly used as a basis for market segmentation are income and occupation. The size of firms where individuals’ employing and their pension rights are effectively reflecting their purchasing power and individuals’ status in the marketplace. Many Researchers have find out that, while incomes of individuals’ are increase, their expenditure on certain categories of product increases. Psychographic Approaches:

In the psychographic...

References: Baker, M.J. (1995), Marketing: Theory and practice, 3rd edn, Macmillan Press Ltd, Basingstoke, Hampshire.
Dann, S. & Dann, S. (2004), Introduction to marketing, John Wiley & Sons Australia, Ltd., Milton, Queensland. HMV revised 2005, viewed 28 Jul. 2005,
Armstrong, G. & Kotler, P. (2005), Marketing: An Introduction, 7th edn, Pearson Education, Inc., Upper Saddle River, New Jersey.
C. Homburg, J. P. Workman, Jr., and O. Jensen, “Fundamental Changes in Marketing Organization: The Movement Toward a Customer-Focused Organizational Structure,” Journal of the Academy of Marketing Science, Vol. 28, no. 4 (2000): 459–478
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