...Introduction: There are many ways for developing and adopting m market segments. Once the company identified its market segments opportunities, it must decide how many and which ones to target. To be effective in the market segmentations, market segments must be: • Measurable • Substantial • accessible The important component of Market segmentation is a market-based plans and strategy. Market segmentation allows businesses to concentrate on different needs of the costumers and different interest of certain goods and services in a different way from one another. “Market segmentation is the process of splitting customers, or potential customers, in a market into different groups, or segments, within which customers share a similar level of interest in the same, or comparable, set of needs satisfied by a distinct marketing proposition” (McDonald & Dunbar, 2004). The basic and main reason for dividing the market into small segments is make more profit and to make it easier to address the requirements of smaller groups of customers and try to create different and other related products according to their intense lifestyles. Some of the basis of Market Segmentation depends on and affected by the following factors: • Gender: Men and women are different in their consuming habits and likings. Marketing strategy is required to address each market and each costumers. Producing bikes for females will be different that for males. Making bike helmets with pink colors and making helmets...
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...successful business plan. Without it, the organizations are challenged to achieve market penetration, high growth rate or brand recognition. What we find however, is that in times of economic downturn or slowdown, organizations commonly will sacrifice this line item first with trimming or cut-backs. Many professionals have historically had a hard time seeing the alignment between marketing and continued profitability- viewing this discipline and its related practices as ‘discretionary’. The article ‘rediscovering market segmentation’ focuses on understanding and assessing various aspects of consumer behavior as one of the key factors to effective marketing, sales and customer satisfaction. Once you know your customer segmentation by personality type, you can create personality type. This knowledge of individual preferences related to a respondent’s personality can be leveraged to create more effective marketing campaigns and increase sales. Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers, who have common needs, and then designing and implementing strategies to target their needs and desires using media channels and other touch-points that best allow to reach them. Market segmentation involves dividing up the potential market for a product into groups of people who have similar needs, and then addressing these needs in a focused way. Market segments allow companies to create product differentiation strategies to target...
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...The concept of market segmentation. The conception of market segmentation is a marketing approach that consists of dividing a wide target market into subcategories of consumers, who share common needs, by planning and applying strategies to target their needs and wants to utilize media channels and other promotional elements that facilitate reaching the focused customers. Additionally, market segments allow businesses to design different marketing approaches to target them. However, reaching a market by recommending different, desirable, and competing products, that is in the outlooks of the target consumers. In which, buyers behaviors in numerous markets diverge in their wants or needs, incomes, localities, purchasing attitude, and buying habits. Within market segmentation, corporations break up large, diverse markets into smaller sectors that can be influenced more effectively with products and services that are compatible their individual needs. Furthermore, a marketer has to point various segmentation variables, to obtain the safest technique to analyze the targeted market structure; where, these market segmentations are classified in four different variables that are geographic, demographic, psychographic, and behavioral (Kotler & Armstrong, 2010, p 191). An example is the Coca Cola Company; this company had expanded its business worldwide servicing over 200 countries and with a total of $35 billion in revenues annually (10-k: The Coca Cola Company). In fact...
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...1. How would you define market segmentation? ( 5 marks) A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another. Generally three criteria can be used to identify different market segment. Homogeneity 同质化, common needs within segment. Distinction区别, unique from other groups.Reaction活跃, similar response to market.For example, an athletic footwear company might have market segments for basketball players and long-distance runners. As distinct groups, basketball players and long-distance runners will respond to very different advertisements. 2. How do geographic segmentation and demographic segmentation differ? (10 marks) Geographic segmentation is based on climate, density, market size, world or states. Many companies use climate if their products or services rely on the weather, such as snow shovels, melting pavement salt, wave runners and boats. For example, USA is more interested in targeting geographic locations that are located near the park in a 100-mile radius. They believe some customers will fly in from out of state, so in addition, they will target large-density areas nearby. However, demographic segmentation is extremely important to all marketing departments since the data is easily available...
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...Market Segmentation of Kwality Walls Cornetto HUL had entered the ice-cream market through acquisitions of approximately 150 crores. It acquired Dollops from Cadbury’s in 1993 while it bought Kwality and Milkfood in 1995. Since Amul has entered into the ice-cream market, Walls has lost a huge market share to Amul. To again gain the lost market share, HUL has modified their market segmentation. On the basis of Density, it has segmented Indian market into Urban and rural area. It has decided to focus only on the urban segment specifically the top 6 metros of India. Over the years, it has expanded to the top 30 cities. The philosophy behind this decision is that the top 30 cities has 70% of total ice-cream consumers in India, i.e. the 30:70 principle. Kwality walls just want to increase the consumption of ice-creams in the markets in which they are present rather than entering into new market. HUL has also segmented the market based on demographics into three categories: Kids, Teenagers and Families. Cornetto as a brand Is targeted at teenagers while Paddle pop is for kids while red tub is for families. This kind of segmentation has allowed to create more consumption opportunity for different segments. For e.g. teenage hangouts for promotion of Cornetto. This segmentation also allows pricing based differentiation for the three segments. Paddle pop is sold at Rs.5 to Rs. 10, Cornetto for youth is priced between Rs. 20 and Rs. 30 while the family pack ice-creams are priced between...
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...Market Segmentation To reach different markets or to promote your products to different locations or people one has to use a method called market segmentation. "Market segmentation describes the division of a market into homogenous groups which will respond differently to promotions, communications, advertising and other marketing mix variable" (Cumming). Market segmentation is extremely important for companies around the world. If a company doesn't research the area in which they are going to market or they put a product that is either to expensive or to elaborate in an area that can't afford that then they will fail as a company. In my paper I will discussion why market segmentation is used in around the world, the types of segmentation, some techniques used to make segmentation work the best. Market segmentation is to divide the market into smaller segments. The reason for dividing the market is to make it easier to address the needs of smaller groups of customers, particularly if they have many characteristicsin common (Breen). It is easier if you find things in common that are the same such age, gender, benefits, lifestyles, etc. We also use market segmentation to find niches or to identify under-served or un-served markets. "Using niche marketing, segmentation can allow a new company or new product to target less contested buyers and help a mature product seek new buyers" (Cumming). Niche marketing can also take a normally large, identifiable group...
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...Segmentation and Target Market Bradley A. Parks MKT/571 April 19, 2014 Tara Hall Segmentation and Target Market The author will show how Cedar Fair Entertainment Company can use market segmentation within the industry to sell their product. Using market segmentation can help identify a target market for the company and show the selection process the company can use to identify their market. Market segmentation accomplishes this by splitting the market up by these key components: demographic, psychographic, and geographic. The author will also prepare a position statement for the company using careful consideration of their brand and strategy. Demographic segmentation is one of the most important areas to the marketing department because the information is readily accessible and can drastically dictate the spending patterns of the consumer. Some of the key components of demographic segmentation are age, gender, ethnic background, and the life cycle of a family. Cedar Fair Entertainment Company runs eleven theme parks throughout the United States and targets the age range of 2-60 years. The company can target this vast age group because they provide a safe and fun environment for families and people of all ages to enjoy due to the array of rides and games. The target income level for this company would be middle to upper class with a house hold income of approximately $50,000 or more as their ticket prices are $50.00. The theme park appeals to all genders and ethnicities...
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...and lifestyle. The undifferentiated targeting strategy ignores the undeniable differences between the distinctive market segments, and as a result, the product or service being marketed comes off generic and fails to resonate with the customers. The customers have a hard time identifying any clear advantages over competitor offerings. In addition, a lot of marketing funds and efforts can be wasted if the marketing message is not reaching the specific customers who would be interested in the product or service, or if the message is only reaching an audience that has little or no interest in the offering. These days, customers seem to be more particular about their preferences, so it is virtually impossible to cater to every customer’s individual conditions; therefore, undifferentiated targeting is not a good idea in most cases. A differentiated segmentation strategy is a strategy in which a firm targets several market segments, employing a separate and distinct offering for each segment. In contrast, a concentrated segmentation strategy involves selecting a single, primary target market segment and therefore means that the firm will focus all of its efforts and resources on creating and providing a product or service that satisfies the needs and wants of that particular target market. In even more contrast, micromarketing is the most extreme approach to segmentation. With this strategy, products and services are specifically tailored to suit the needs and preferences of individual...
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...Skin Care Market segmentation of Great Britain The beauty cosmetic industry is one of the largest contributor to the Great Britain economy by spending on cosmetic and skin care products. The Bionsen surveyed that the average woman in the UK will be spent £100 thousand on cosmetics during her lifetime According to the market research company called Mintel, the Great Britain’s beauty and cosmetic market enhanced a size of £16.6Bn in 2014, up from £13.8Bn by 2009 since the Global Crisis in 2008 due to the growth of wages. Furthermore, the customers have become adept at seeking out a bargain. The sizable growing UK population, consistent economic growth and higher disposable income have driven the growth of demand for various beauty product sectors. In the Great Britain, the sale of premium beauty market in spending on skincare products has been robust during 2012 to 2014 with a growth of the economy, disposable income and consciousness about beauty and health of skin, followed by hair care and cosmetic segments in the UK. The market increased on average between 5-6 percent in the last couple of years and an immense opportunity to rise to new highs in the coming years. The sale of skin care products has grown consistently from £454 million in 2012 to £501 million in 2014. We can see on the Exhibit 1, skin care sector sales have continued to support the UK economy totally £1.44Bn during the over past 3 years. Exhibit 1 Within that, sales of facial skin care for women reached...
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...Segmentation and Target Market MKT/571 January 26, 2015 Dawn Obermoeller Segmentation and Target Market Understanding the current demands of consumers is key to determining new ideas, knowing how to present those ideas to the public, and ensuring a better chance at success. When first putting together the business plan for a new product, product suppliers need to evaluate and monitor their target market; after of course determining what the target market may be. Airguard has been in business since 1964 and has continuously tackled the competitive industry of air, oil, and water filtration. With their success since the beginning, they have successfully shown their understanding of how to target consumers and maintain them. Positioning Statement For residential and commercial filter users, Airguard’s DP40 brand pleated filters rank amongst the highest in quality and durability for any user, as the newest technology in filter manufacturing is used to construct the most efficient filters. Airguard’s patented technology allows the product to be just as effective as their biggest competitors but at a lower price bracket. As these products are usable by both residential and business consumers, the DP40 filter can last up to three months which in turn saves the end user even more money. Market Segmentation With Airguard being a major manufacturer in the filter industry, it is impossible for them to target all potential consumers. In order for Airguard to be...
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...telecommunication or VOIP phone distributor that provides friends and families in the US with an affordable call rate service that allows subscribers to choose from a wide range of service offerings. Additional product features are added for free to ensure customers high service satisfaction. Membership subscription is offered to customers in order to take advantage of the low rates. NetSpeak provides the lowest phone call rate for friends and families to stay in touch. Marketing Objectives * Launch new product on January 1, 2012 to target market, achieving sales target of $250,000 by December 31, 2012. * Increase product awareness among the target audience by 35 percent in one year. * Inform target audience about features and benefits of our product and its competitive advantage, leading to a 15 percent increase in sales in one year. 1. Identify the marketing segment for the product and explain why this segment was selected; The market segment selected for this product was young adults between the ages of 18 to 28. According to Zdnet Research in January 2006, the highest online activity by age group for instant messaging and text messaging were young adults between the ages of 18 to 28. It is believed that this age group spends the most amount of time communicating with each...
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...MARKET SEGMENTATION Segmentation factors The significant rise in Singapore’s wine consumption, in recent years, has lead to the rapid increase in the number of brands looking to enter this seemingly attractive market. In order for Seabrook to gain a competitive advantage and market their Pinot Noir and Shiraz successfully, they need to ensure that they effectively segment their potential customers in order to maintain focus, save resources and provide measurability. Market segmentation is a useful tool used to identify categories of consumers or groups of firms that are likely to use or buy a product or service (Hall & Winchester, 2001). It is the process of defining and subdividing a large, homogenous market into clearly identifiable segments of consumer, who have similar needs, wants and demand characteristics. Market segments ideally should aim to be measurable, sizeable, accessible and actionable. Once segments are established an organisation should then chose to target the segment they believe they can serve most effectively. Therefore, Seabrook should aim to segment consumers in the market by a combination of the following bases: • Demographics – Age, Gender, Income • Psychographics – Life style, Social Class • Behavioural – Benefits sought, Brand loyalty, Type of users. Through the use of all three bases, four wine consumer segments based on Spawton’s (1991) wine consumer model, can be derived. These four segments consist of the ‘Connoisseur’, the ‘Aspirational...
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...2.2 Osim Market Segmentation Market segmentation is the process of dividing a broad target market into subsets of consumers who have common needs so as to design and implement strategies to target their needs. The general target group for Osim is mid to high-end customers. This is so as they are less vulnerable to recessions and demands will become more resilient to cyclic demand patterns exhibited in typical consumer companies. This also allows them to actually charge a premium to consumers over their competitors’ products. However each of Osim products is actually created for a specific target market group in mind as they try and gradually increase their market share. These target markets are mainly sorted out through the use of age group, gender and income levels. Below shows an example of a product’s target market. Osim uPaPa Hug Age Group 25-35 & 50 years old onwards It focuses on providing a relaxing experience as well as a stress remover which young working adults are facing in the fast paced lifestyle. As the society advances, young adults are often suffering from muscle discomfort due to their work nature. In addition, OSIM UPAPA Hug was also advertised as a perfect present for the elders. Gender Male and Female As seen on their advertisements, a young lady with toned figure was portrayed. It displayed the ‘gentle’ side of the product, symbolising that it is suitable even for female usage. The male models playing the drums symbolised that the product has...
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...Assignment #1 Market Segmentation and Product Positioning Firstcup ^ Coffee Shop (Toronto, Canada) Marketing Management Abstract This paper will provide the market research plan for Firstcup Coffee Shop. The store will be located in Toronto, Canada. The objective for the first year of operations is to be selected as the “Best New Coffee Shop” by the local restaurant authorities of the city. Firstcup coffee shop is expected to become a constant necessity for local coffee lovers and active people. It is a place to enjoy while you try to escape from the daily stresses and just a comfortable place to meet your friends, have a conversation, surf the web, or read books and magazines, all in one. Taking into account the growing demand for high quality gourmet coffee and great service in this city, Firstcup will take advantage of a strategic localization in Down Town to build a core group of repeat customers. The following plan will include a report of Firstcup Coffee Shop’s data source implemented, the research approaches used, the research instruments that will be apply to interpret the data, the sampling plan and the contact methods. Furthermore, potential market opportunities and threats have been identified by a SWOT Analysis. All of this information will be absolutely important to continue building an accurate marketing plan for the coffee shop. The results of the plan will be definitely very important...
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...Market segmentation is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. Marketing segmentation has dividing a market into smaller group distinct needs, characteristic or behavior those might require separate products or marketing mixes. The purpose of market segmentation is to increase marketing efficiency by focusing marketing efforts to a particular group, maximize scarce marketing resources, find a market with limited competition and select the most profitable segment. It has four major market segmentation variables, there are geographic, demographic, psychographic and behavioral. Geographic segmentation tries to divide the market into different geographical units such as location, regions, population density, climate and countries. Demographic segmentation consists of dividing the market into groups based on variables such as gender, family size, family life cycle, income, occupation, education, religion, race and nationality. Psychographic segmentation divides buyers into different groups based on social class, lifestyle or personality characteristics. Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, response to a product. There are four consumer and industrial product that we are going to discuss about their market segmentation, which are McDonald, Hugo Boss perfume, Mobil Nokia and magazine of National Geographic. Fast food: McDonalds Geographic segmentation ...
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