In recent years studies have been made to refine these demographic variables so that they can be more effectively used. Example of the companies who make effective use of demographic segmentation are Lego, Toys ‘R’ Us, and the early learning centre who not only recognize the differences between children of various age group but also design their products for highly specific defined age categories (Richard M. S. Wilson, 2005). Age segmentation is an important tool for segmenting the consumer market. A variety of terms are used to refer to various age groups. Examples are newborns, infants, young children, tweens, teens and young adults also called Generation Y in United States of America (USA), Adults or Generation X and the baby boomers or the Seniors. Various studies have been conducted which age group consume exactly how much and has influence on how much consumption. For example in USA the total population of tween, the children aged 9-12, this age group spend $20 billion in an year and further influence the consumption of $ 200 billion. To cater to their needs brands like Limited design clothes that are more fun like teens. In this each age segment has different specific need in everything ranging from basics like food and clothing to entertainment etc (Charles W. Lamb, 2010). Sex is another important market segmentation tool that helps in helps designing the product and services according to the specific need of the consumer. The segmentation on the basis of gender is most useful in clothing, apparels, and accessories etc. The most evident example is completely different range of toiletries and perfumes for males and females. Now a days gender segmentation is even visible in mobile phones with varying skins for each gender. A common basis of segmenting the consumer market is income. Income is an important determinant of consumption pattern. Companies design their product features, define prices and determine positioning strategy based on the income of the target market. Example of this segmentation is HLL different washing powders sunlight, Wheel, Rin and Surf Ultra for different market segments based on income (Saxena, 2008) Profession and education are also important determinants of market segment. Education level defines taste not only in books but various other consumer goods. For example highly technical and multiple featured mobile phones are popular among highly educated people whereas basic phones are more popular in less educated people that fulfill their needs. Young executives and business professional also prefer multi features internet enabled cell phones that can cater to their mobility needs. Family size and marital status also defines consumption patterns. Single male and females spend more on their personal needs such as slimming equipment, cosmetics items etc and prefer fast food (Johan Botha, 2004). Nationality and religion also play an important role. For example Hall food for Muslims and Kocher for Jews is an important segment. Nationality also defines our tastes in food, clothing and preferences for entertainment etc. Geographical Segmentation Geographic based segmentation splits the market on the physical location of the potential consumers. This segmentation is based on the assumption that consumer living in close geographic proximity has some similarities in their needs and preferences f
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CRITERIA FOR MARKET SEGMENTATION Demographic Criteria One of the major methods and the most frequently used method of segmentation is demographic segmentation. This method is based on the assumption that market can be divided on the basis of the variables of demographics such as age, sex, income, occupation, education, religion, race, nationality, family size and marital status…
This result in distortion when prices and quantities are considered in wages paid to workers and jobs they are allocated to. Both labor market discrimination and labor market segmentation are products of market failure in the labor market. Labor segmentation tries to explain “economic marginalization on the lines of racial and ethnic minorities, gender, and the class to which the worker belongs” (Garnsey & Zablocka, pp.
Timex has watches for both female and male users. The Rolex watch targets a different target market. The target market for Rolex products are people that have income above $100,000 a year. This target market is based on the introductory level Rolex products.
The founders Rollin King and Herb Kelleher are the persons behind the success of Southwest Airlines. The airline is based at Dallas, Texas in USA. Southwest Airlines started with 3 aircrafts but now has over 500 Boeing aircrafts in its fleet. The airline company has grown immensely and is the most preferred airline amongst the consumers due to its low fares and excellent service (Southwest, 2012).
One of the strategies through which effective marketing has been realized is through segmentation. Market segmentation is the dividing of a market into customer brackets which binding factors are their identical needs. Each bracket in the division would be the market’s base target attainable through a unique marketing outfit.
The first beer was sold at a lodge located near the company back in 7th May, 2000. The sales during the first year amounted to a total 40 dollars as about 4 servings of beer were sold every single day. About 60 dollars were used in the expansion process meaning that the company operated for losses during the first year.
This target market is based on the introductory level Rolex products. A Rolex customer is a person that is accustomed to buying luxury items. A lot of Rolex watches have target market of people that are
Since America is so intensive it its quest to practice the Adam Smith’s depiction of Capitalism, the labor force correlates with the condition of the economy. Smith’s theory that propagated dependence of individualism that oozed
Segmentation based on the product. End use of the product, products are classified according to customer needs. It involves categorizing your products as per the user or industry standards and requirements. It may include tailoring or changing your products to meet the user or industry requirements.
Porsche Company has several ranges of high-end vehicles for their different customer market. The process of segmentation starts with the basis of it all, the product. Buyers’ behaviour differs in terms of usage, intentions and loyalty to Porsche.
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