The inclinations of the consumers are different for the same goods and services produced in the economy. Thus, it becomes crucial to categorize or segregate the buyers possessing same characteristic features of tastes and preferences. This process of grouping buyers in terms of several common determinants is known as market segmentation (Wind and Douglas, 1972). Market Segmentation It is believed by many scholars that market segmentation is an alternative of product differentiation. In today’s world, market segmentation plays a vital role for formulating all marketing strategies adopted by a firm. It creates different samples of buyers with same type of demand patterns that helps a company in designing separate marketing plans for each group and thereby facilitates them to win over customer loyalty for all the divisions. A particular market can be divided or categorized according to psychological, demographics, geographic and behavioral determinants. A proper marketing mix formulated by a firm would help it to suffice the demands of each segment separately, in an economic and efficient manner. This paper will implicitly explain the concept of market segmentation based on demographics (McDonald, 2012). ...
raphic determinants, an organization can create excellent strategies of marketing that would help it to park potential customer base in its retail segment. It becomes very convenient to apply demographic methodology of market segmentation because it is easy to calculate the demographic variables during the procedure of market segmentation. Moreover, the factors on the basis of which demographic market segmentation is introduced can generally be used for almost all the products (Tyan, 1987). Life-cycle and Age It is analyzed by the economists that the nature of demand created by a buyer changes with age and time in the life-cycle process. The companies while making their business plans target consumers on the basis of age to sell their manufactured products. If a firm produces land line telephones, then it should realize that the potential buyers of such a product would be consumers of age group 60 years and above. This is because the old consumers will have less skill to use modern complicated technologies in the mobile phones. On the other hand, it would be wrong on the part of the company to analyze that the buyers of landline phones would be young in age in general. So the market is segmented on the basis of landline and mobile phones, age and life-cycle becomes a vital mode of market segmentation (Hoek, Gendall, and Esslemont, 1995). Gender There is a significant difference in the likings of men and women. Thus, while marketing a product a company must first segregate the marketplace on the basis of sex. Men and women possess separate attitudes about same type of a commodity. Companies dealing with cosmetics, magazines etc should always segment their market while launching marketing strategies and plans. Like, if a company desires to sell a foundation base in
Marketing Segmentation – Demographic Introduction In the modern economic framework most of the economies in the world are open economies and all of them participate in international trading. Almost all the companies in the world operate in domestic and foreign markets, thus they enjoy a broad customer base for their goods and services…
Suppliers tend to segment the total market based on consumer or business categories. The supplier bodies tend to divide the entire market based on consumer and industrial products and services and thereby tend to eke out separate marketing channels for such purpose.
[Professor’s Name] [Writer’s Name] [Course Title] [Date] Market Segmentation The market consists of different types of consumes that have a variety of needs and various types of products (Kotler, pp.44). The market further divides itself into different types of consumers, further divided into subgroups and segments.
The researcher of this essay aims to pay special attention to the requirements of a good market segment. It should be easily differentiated from others in terms of the customers’ demands. Secondly, it should easily be reachable in terms of communication as well as distribution routes. The segments should be of a considerable size to fully utilize the resources needed to sustain them.
..6 i. Geographical Segmentation………………………………………………6 ii. Demographic Segmentation………………………………………………6 iii. Psychographic and Behavioural Segmentation……………………………7 Benefits and Limitations of Market Segmentation………………………………………..7 i.
nds upon the type of purchase; if the purchase is limited the decision will take less time and effort and the opposite is true for extensive purchases whereas for routine purchases consumers just go and fetch the product of their favorite brand. According to Jack (129) consumer
I am a young professional and student belonging to middle class. My demographic traits highly influence my choice of products and services. The youth are mostly attracted by thrilling and exciting products. I like dark
A market segment is a specific group of people, for instance, men or women, towards whom a marketing strategy places its focus (Gale and Swire, 2006).
Marketing segmentation is essential because it specifies potential targets. It also helps a marketing team identify the
This shipping customers segment can further be subdivided into clients who are in need of a packaging service, and clients whose packages are ready for shipment. The conventional customer that requires shipment of a package is one who cannot access
1 pages (250 words)Essay
Hire a pro to write a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Apply my DISCOUNT
Got a tricky question? Receive an answer from students like you!Try us!
Let us find you an essay for FREE
Contact us via Live Chat, call us at +16312120006or send an email to email@example.com