Market segmenting is the process of dividing the market into dissimilar, distinctive groups of people who have similar needs to be satisfied, alike wants and behavior, or who might want same products & services. The process of segmentation is supposed to be performed by each company being interested in creating and successfully implementing marketing mix, which implies product development, placement, promotion and choice of appropriate pricing strategy.
Markets can be divided depending on a number of wide-ranging criteria. Variables that are commonly used for segmentation are geographic (region, country size, climate etc.), demographic (age, gender, family size, religion, language etc.), psychographic (personality, life style, attitude etc.), behavioral (benefit sought, brand loyalty, decision making unit etc.), and technographic (motivation, usage patterns, standard of living etc.) ones. Successful segmentation requires the following: segments have to consist of members that are similar to each other; segments have to be distinctively different from each other; segments have to be computable and sizeable; segments have to be reachable and actionable; target segment has to be big enough to be financially valuable.
It is important to mention that the process of segmentation is different from that of targeting, which means choosing among the segments those that are worth addressing. Target markets are those segments of the general market that the company chooses to promote its product to, considering its size and structural attractiveness. Targeting helps to raise company’s effectiveness, since it allows a marketer to focus on some specific audience when developing a marketing strategy.
In terms of marketing strategy Nike Company is obviously unique. Its products are designed for men, women, and children of all ages. Nike doesn’t only sell athletic shoes, but an