Got a tricky question? Receive an answer from students like you! Try us!

Market Segmentation - Essay Example

Only on StudentShare
Author : keven96

Summary

Market Segmentation Name: Professor: Institution: Introduction Market segmentation is a general term used in business to refer to a process of subdividing a market, which is homogeneous, into identifiable sets or segments characterised by similar needs and wants…

Extract of sample
Market Segmentation

Lastly, the company seeks for a unique marketing segment that is not being practised by their competitors. This plays a big role in enabling companies to achieve a high market share, thus generating a comfort factor since the buyers will see it as a market leader. Through this, most business entities are able to better their competitive positions and satisfy their customer needs (Burrows, 2010). For an adequate marketing strategy to take place, a manager has to determine and identify the boundaries within the market and with the help of a business plan, develop a clear definition of a business to be in operation. Then, the manager should get enough knowledge and all the relevant information about the goods and services provided by the competitors in relation to the basic requirements of the customers in the market. The company, therefore, would determine the methodology and variables to use in dividing its market into subsets. Research tools are introduced in the process of collecting and analysing data with the purposes of identifying a homogenous segment which, at the same time, is heterogeneous to the other segments. Basing on the consumers’ behaviour, a company selects the variables that will assist it in creating a detailed profile of each distinct segment (Burrows, 2010). ...
Download paper

Related Essays

Market Segmentation in Apple
“An example of one product and multiple segments would be Apple’s iPod which was produced and targeted towards different demographic segments including male and females, different age levels and different income levels” (Elements of a Successful Business Plan: Market Segmentation n.d., p. 5). …
4 pages (1004 words)
Market Segmentation
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 (Croft, pp. 1). Market segmentation appears to be a simple theory; however, it remains one of the most widely researched marketing topics (Wedel & Kamakura, pp. xix). 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…
5 pages (1255 words)
Criteria for Market Segmentation
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,…
6 pages (1506 words)
Market Segmentation Essay
95-96). All firms must ensure that the product/service that they are offering is different from their competitors in some aspect. In this era, there is no such thing as a standardized product which is suitable for use by all people. Hence, no firm seeks to target the whole market at large and it is highly difficult to target a large potential market with the same product and the same marketing strategies. No products except maybe staple foods such as fruits, vegetables, bread, butter, and other important dietary supplements are aimed at targeting the whole population of consumers and are…
6 pages (1506 words)
The Importance of Market Segmentation
It’s a financial situation where if your advertising is all over the place, without proper focus, you will spend much more money in areas you where you don’t need to. It affects the return in investment (ROI) negatively. The reason why anyone is in business is to make money and reduce losses on all levels (Boone, Kurtz 1999, p. 229). There are two types of products in marketing: consumer products that the general public buy, and business products which are created for the needs of other businesses. A good example would be a company that buys rubber to create tires. Tires can be purchased…
6 pages (1506 words)
Market segmentation
This paper discusses how market segmentation is a basic ingredient of the marketing strategy for the sake of different products and services in an organization that caters to the needs of the customers and varied stakeholders. It pinpoints its attention towards areas which deserve understanding and comprehension for the sake of reaching a common consensus as far as the dynamics of marketing are related. It is a fact that every organization has its own set ways in order to categorize these segments. It does so in order to focus entirely on the segments which have thus been chosen and not to…
7 pages (1757 words)
Market Segmentation of Orbitz
99 (Kiplinger, 2001). It is a leading travel company enabling customers and passengers to plan and book a broad range of travel products. The parent company Orbitz worldwide own a series of brands like Orbitz, Cheap Tickets, ebookers, HotelClub and Rates to go, The Away Network and Orbitz for Business. The website was launched in the year 2001 and in the year 2004 the company was acquired by Cendant Co Ltd (Orbitz, 2013a). The company is headquartered at Chicago and the company is listed in New York Stock Exchange (USGCAO, 2003). The IPO of the company occurred in the year 2007 and the…
19 pages (4769 words)