Market segmentation: 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.
Consumers and Customers:
IPod: Is a product own by the tech giant APPLE INC. I believe target market for the iPod to be from middle school ages, adults, dynamic people and middle class people. That would mean everyone who has access to and knows how to use a computer. The iPod is for those persons who like to listen to music, take pictures, and have easy access to what they enjoy most. Downloading music is rapidly growing and those that like to have the latest music want it easy and fast. In order to reach more customers they need to make sure that their product is reaching its targeted audience by the right way of communication with the customers within the market. The business must make sure that the product is released within the right area in which they can operate and maximise profit.
The business segments its market by using demographic data, such as age, income, occupation etc.
The importance of segmentation is to understand the customer needs and wants, right product, in the right place at the right price with the right promotion. So the company will know who their market target is and who to sell their product to. They also need to have a USP in place, which stand forâ Unique Selling Propositionâ but the base of segmentation is demographic.
Tesco value baked beans: This product is targeted to families, single parent on benefit, student and low income people. The quality, scheme, brand, size and packaging and value for money influence people to buy the product. The product is targeted at these consumers because the families, single parent and low income people would buy the good because they are cheap and profitable; they are also easy to access. They target people with low income while the organization aim is to make the product cheap so that people with low income will afford to buy it. The market is segmented using demographic data (age, occupation, income etc.). The importance of segmenting the customers is to understand the needs and want of the customer using the marketing mix (price, place, product and promotion). The segmentation will be demographic which include age, income, occupation etc. they might use market research data within the community to target families in a neighbourhood.
Economic family car: This product is targeted at families and young couples. The price, size, quality and reproduction in families etc. Influences people to buy the product. They are targeted at this group because it is profitable and useful to the families also it is comfortable for the families with children or teenagers instead of squashing themselves in a small car. The mission of the business is to maximise profit by making sure that the products is accepted by the targeted group by listening to the opinion of the targeted group in other to make the product up to standard to attract customers. The market is segmented using lifecycle (family size, families with children, teenagers or young families etc.). The importance of segmenting the market is to meet the customers want by producing the right product at the right price and place with the right promotion. (4ps). the basis for segmentation is demographic data.
Kelloggâs variety pack: these products are targeted at kids 5-10yrs and families with children Pester power (the technique of selling to adults who have the money by appealing to children who do not and relying on them to pester their parents into buying the item for them), unique advert, price; brand etc. influences people to buy the product. The product is targeted at this group because of the pester power of children, and accessible because it is sold in all retail shops which make it easier for customers to get for examples Morrison, Tesco, Aldi, Sainsbury etc. The business mission is to target the kid so as to influence their parent to buy the product which most of the parent canât say no.in this case parent will buy the product of the business and probably repeat buying the same products. The market is segmented using demographic data (age, family size, income, etc.). The importance of segmenting the customers is to understand the needs and want of the customer using the marketing mix also known the 4ps (price, place, product and promotion).the bases of segmentation is demographic data which includes age, family size, income, etc.
Business to Business market:
Business to Business is when a business makes a commercial transaction with another.
Microsoftâs software: These products are targeted to businesses, schools, etc. Microsoft selects they business customers by size of the organisation. The company reputation, quality service, discount for supplying large amount of products or services. The value of the business is also important so as to identify the right segmentation. For example if Microsoft supplies large businesses their demand and requirement would be high
...(download the rest of the essay above)