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Marketing Segmentation - Demographic - Essay Example
Author : bkoss
Pages 4 (1004 words)
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…
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). ...