Sunday, March 3, 2019
Market segmentation Essay
trade divider is manifestly a modern merchandiseing strategy in which the market for your customers ar divided in various several groups and seg ments based on both(prenominal) major key factors such as demographic, geographic, psychological and behavioural factors. By dividing the market, the sellers that that try to deliver good take to be to their customers will be fitting to have better understanding of their target audience and thereby make for their marketing more effective. Market naval division also helps to make the tierce atomic number 18as of marketing which are, mass marketing, product distinctiated marketing and target marketing. Market air division helps all these marketing types to customize their markets. Marketing segmentation cannot be complete without considering the following variables that assist it in segmenting its consumer market.Demographic segmentationThe demographic segmentation divides customers into segments based on demographic values such as age, sexuality, family size, family life cycles/second, income, occupation, education, religion, race, coevals, social class and nationality. It is often used for reason that the variables are easy to identify and measure.Age and life cycle segmentationThe consumers needs and wants change with age. Therefore some companies uses age and life cycle segmentation, where age and the life cycle determine the marketing approach.Gender segmentationGender segmentation is used to differentiate the needs and wants between men and women due to the fact that men and women have different attitudes towards a product. The gender segmentation are applied clothing, hairstyling, and cosmetics.Income segmentationIncome segmentation divides the market into different income groups. It is used in automobiles, clothing, cosmetics, financial services and travel.Generation segmentation each(prenominal) generation is influenced by times in which they grow, marketers market to a generation by using icons and images that is relatable according to thegenerationSocial class segmentationThis type divides the customers according to their preference in cars, clothing, home furnishing, leisure. Although taste changes precisely many company design products for specific social classes.Geographic segmentationIt divides customers into segments based on geographical areas such as nation, states, regions, countries.Psychographic segmentationThis is derived from devil principal types of customers personality profiles and lifestyle profiles.Behavioural segmentationIt is based on customers attitude toward, use of, or response to a product and they are divided further into various variables like occasion, benefits, drug user status, usage rate, buyer-readiness stage, loyalty status and attitude.2) ADVANTAGES OF ADOPTING MARKET SEGMENTATIONThe use of market segmentation and why it will perform better than a subscriber line that does not adopt it are listed as follows It will help a hard to be able to separate its customers and be able to come home fat customers in supplying value and better customers relationship which in return will bring profitable value back to the firm. It will be able to help a firm to be knowledgeable on the type of product and market take to produce for its customers. It will enhance the market structure of a firm in helping it locate new market and new profitable product for its firm. Smart enterprises use segmentation to continually monitor, quantify, and qualify the changing customers, in part to stay ahead of the competition. Segmentation data provides organizations with schooling to develop timely goods and services that profitably serve customers.