The Process of Market segmentation - Essay Example
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Extract of sample The Process of Market segmentation
This paper illustrates that the market consists of different types of consumers that have a variety of needs and various types of products. The market further divides itself into different types of consumers, further divided into subgroups and segments. The needs of these different types of consumers may vary due to a variety of factors. The concept of market segmentation, therefore, refers to the process of targeting different types of consumers with different marketing programmes and products, suitable to their needs. Market segmentation appears to be a simple theory; however, it remains one of the most widely researched marketing topics. The topic of market segmentation has been around in the world for nearly a decade. It has gained large importance these days, especially in the industrialized world. The needs of consumers are widely heterogenic; therefore, different products are made that target specific needs of consumers. The theory of market segmentation, given by Smith has maintained its value, for he recognized the heterogeneity of the needs of the consumers, because of their differing preferences. The purpose of market segmentation covers maximizing sales and profits. In the modern world of today, the theory of market segmentation has undergone various changes and has gotten more complex. It remains extremely important for a marketer to have a detailed analysis of the needs and preferences of different types of consumers. Mass marketing does not take in to account all these different types of preferences. Therefore, the approach of market segmentation proves to be extremely beneficial. The marketing theory takes into account the different segments of the market. It also does not remain feasible to target the needs of each consumer. Consumer groups are divided according to their similar requirements and buying characteristics. The process of market segmentation begins this way. The factors that determine these segments include ‘geographic, demographic, psychographic, and behavioral’ factors.
The paper attempts to explain the process of market segmentation. It also describes the reason for carrying out market segmentation. Furthermore, it talks about the concept of ‘targeting’, which remains extremely important in the theory of market segmentation…
Taking above into account, it should be pinpointed that Volt costs nearly 41,000 after inclusion of taxes to a consumer, whereas the Nissan’s Leaf costs $32000 (after tax) on average (Weingarten, 2011). Nevertheless, the initial target market of Chevy Volt is upper – middle and elite consumers with stable purchasing power and with inclination to acquire premium quality branded electric automobiles.
[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 conclusion from this study states that market segmentation is one of the most essential and vital concepts that businesses should embed within their systems. The benefits derived from segmentation will depend upon how effectively market research is carried out, which variables are considered, and the ability of the marketer to notice trends and opportunities.
This is where the diversity of demand brought by any business entity into the marketplace are properly understood and characterised. It is developed by identifying a given number of identical market segments which are of a justifiable size, can be distinguished, customer oriented, profitable and can be easily accessed, and then selects a target group(s) for its marketing operations.
According to Weinstein (2004), market segmentation usually aims at availing products and services to consumers who are more likely to purchase those goods and services. From a theoretical perspective, marketing conducted by business organization entails employment of appropriate marketing mix within consumer environments.
The program seems to work like a major brand in the market. The logo Tick is considered sign of quality. People who are very sensitive in their health matters trust this logo Tick. This brand is gradually creating market segmentation in a unique way. It has changed the whole scenario of market segmentation process.
This report is based on the analysis of market segmentation, application of marketing mixes and the final assessment of the two new products launched by EKON. EKON is a UK based company and known for its excel in furniture. Sofas, dining furniture, office chairs and desks are some of their popular products that they supply through their high street stores.
Demographic: Oral-B is segmented demographically as it has products for children; moreover, the kid’s brushes are also divided into four groups, depending upon the age – from four months of age to children who are above eight years of age. There are cartoon
oes into the marketing of each product is rather extensive as companies try to figure out who to sell their product to, how much to sell their product for, and how to go about pushing their product into the forefront of the public’s increasingly short attention span. One of
Backpackers usually carry each and every thing that they may require in the route of their travel. The transportation that they use is usually public transport and for living in case of harsh weather they use hostels,
2 pages (500 words)Essay
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