Market Segmentation †How & Why Essay -- Business Management Studies

Market Seg manpowertation How & WhyAs well as the physical aspect of our store changing we put unitary over to lookat the market divergently. Where it was once possible to take a pileit high sell it cheap approach, to achieve broad speak to to the mickle we need to cater to the needs of the universe of discourse. This isachieved by breaking the population into groups and then releasingproducts and services that meet the needs of these groups. This isknown as target marketing. Although we all appreciate the theoreticaleconomies of scale given by mass marketing a single product, there argon a few(prenominal) products that appeal to everyone. Naturally this has led to asegmentation of markets as companies that marketed one product, nowproduce a vomit up of products. An example of this is Coca dumbbell. primitively they s former(a) one product, as well as standard coke we now havediet coke, coke with vanilla, cherry coke, sprite, lilt and many another(prenominal) an(prenomin al) more.By accepting that people have unalike needs and different shoppingbehaviours we can market ourselves to these segments and attract newcustomers. There are six steps to market segmentation, targeting &positioning and these are1. Identifying qualities for segmenting the market2. growing profiles of the segments created3. turn measures of segment attractiveness4. Select target segment5. Develop positioning for each target segment6. Develop marketing mess up for each target segment.We have talked about segmenting the market. The question is how do wedo this? There are many ways to segment. You could do this basedupon abode income, gender, age, previous purchases and so on In factthere are many ways to identify different market segments and I will soon the more commonly used methods.GeographicalIt is possible to segment the population according to Geography,people from the North drink more Irn Bru than those from the South. This can be measured by the success of advertisi ng, an example beingthe Jamie Oliver advert for Sainsburys was less successful in thenorth.Demographics.This is where segmentation is done by using personal characteristicsof the population Age, gender, income, stage in the family life cycleetc.Socio Economic Grouping. This is based upon the occupational status of the head of thehousehold. It is based on the traditional social class system of thiscount... ...e of segments enables a company to specifically target an audition within a population. An example would be if I asked all ofyou what you would go out and spend fifty pounds on if I were to giveit to you now. The chances are that everyone would come back with adifferent suggestion. thus far it I likely that some(a) of you would goand buy clothes, some you would go and buy CDs or DVDs and some ofyou may possibly save the money instead. By grouping people togetherit is possible to target a product at an audience that will wan to buythe product. This should ensure a return on in vestment quickly forthe producer and could lead to rapid growth. However a universalproduct is unlikely to appeal to a wide range of people so it ispossible for a producer to create products for different marketsegments. Today we are going to discuss in more detail Cola drinksand C.Ds as product within our superstores. For the aspiration ofillustrating segmentation further it is worth noting that recentdemographic shift of men drinking Diet Coke has been noted by CocaCola and their adverts are targeted far less specifically at womanthan the old Diet Coke break ads of the nineties.