Assignment 1.0 Segmentation Theory
Segmentation is a division of a big group to a few of different specific segments. Market segmentation is the recognition of a company of different part of market. Segmentation helps a company to have a better result in connecting with their customers (NetMBA.com, 2002-2007). There are four main types of market segmentation which is, geographic segmentation, demographic segmentation, psychographic segmentation and behavioral segmentation. These four main types of market segmentation help marketers to have better understanding to their customers and fulfill the customers’ needs, to increase the earning easily and reasonably, to expand the market easier, to gain share of the market segment, and to have more customers (tutor2u).
Geographic segmentation is to gather and study about the information of customers through their living places. This segmentation is almost always used by all marketers. This is because marketers want to know better about the location whether it suits to earn more easily and faster (businessdictionary.com). This segmentation includes region, size of metropolitan area, population density and climate.
Demographic segmentation will normally connect more on customers’ wants and needs. This segmentation helps marketers to separate customers in different groups according age, gender, social class, family size, income, occupation, education, religion and so on. This helps marketers easier to concentrate on their customers and have better results in their markets (Naik, Abhijit., 2010 ).
Psychographic segmentation is the division of different customers according to their sex, age, lifestyle, interests, opinions, attitudes and values (American Marketing Association, 2010). This segmentation helps marketers to increase the value of their products and have better market strategies (Thadani, Rahul., 2010).
Behavioral segmentation is concentrate on more specific customers. This segmentation is affected by benefits sought, usage rate, brand loyalty, customers’ status, readiness to buy and occasions (NetMBA.com,2002-2007).
2.0 Target Market Identification
Beyonce Giselle Knowles was born on September 4, 1981 in Houston, Texas, United States. She was destined to be a star. This is because when she was still young, she had already won over thirty local talent shows. When she was only seven years old, she had already started to perform in front of people in her church choir (2010, FamousWhy). In 1990, Beyonce had formed a group of three named Destiny’s Child with Kelly Rowland and Michelle Williams. Destiny’s Child is best known as R&B singers of the hit "Say My Name" (Who2, 2010, March 27). In 2002, Destiny’s Child sold their album up to 33 million worldwide and won 6 Grammy Awards and other rewards (2010, FamousWhy). Beyonce, Kelly Rowland, and Michelle Williams allow themselves to perform in solo in their career in 2001. Beyonce is now act in a different character in her life which is singer-songwriter, record producer, actress, dancer, choreographer, model and even a video director (2010, FamousWhy). Besides, Beyonce has also produce a product which is a perfume named as “Heat”. Her perfume has earned up to $3 million in sales only the first month (Alicia, Mar-20-2010).
Geographical segmentation is the division of market into specific segments according to region, size of metropolitan area, population density and climate. Beyonce sells more of her albums in the Western countries. This is because in the western countries like England, United States has better income compare to the eastern countries. Citizens in the western countries are more willing to spend more for their entertainments (Dan Zambonini, 2010). Besides, Beyonce is also a western celebrity. Thus, western citizens will prefer more on Beyonce as a star.
Demographic segmentation is where marketers divide consumers according to their age, gender, social class, family size, income, occupation, education, religion and so on. Younger consumers will prefer more to Beyonce’s songs compare to the older consumers. This is because Beyonce’s songs genre are pop. Younger consumers will also willing to spend more for their entertainments sake. They will support more to their celebrity. But there will also have some older fans of Beyonce. They even encourage the young one to support Beyonce (Nathalie Farah, 2009). For a family that has a better income, there will also have a high possibility for their children that love Beyonce to spend more for Beyonce.
Segmentation of customers according to sex, age, lifestyle, interests, opinions, attitudes and values is psychographic segmentation. For the customers that are followers for Beyonce, they are willing to spend as much to support their celebrity. Since Malaysia is a Muslim country, Beyonce who is sexy in her appearances is banned from performing here. Western country is a better place for Beyonce to earn more compare to Malaysia where Beyonce can have her sexiest appearance in her performances (Heritage, S. 2007).
Behavioral segmentation is affected by benefits sought, usage rate, brand loyalty, customers’ status, readiness to buy and occasions. Beyonce offers a special price for the last 1000 consumers of her North American Concerts. This attracts people to get the tickets in a special price which is $20 (PR Newswire, 2010). In Malaysia, arguments about Beyonce’s performances have occurred. This is because Malaysia is a Muslim country. But, there have some fans that feel that it is unacceptable since Beyonce’s performances are just for entertainments usage only (News Straits Times, 2009).
3.0 Discussion / Rationale of the Target Market Collage
Beyonce is a famous pop star. She starts to sing when she is still a six years old kid in a choir. Then, she forms a group which name as Destiny Child. After that, the trio in the group agreed to have their own single performances in entertainment circle. After Beyonce has her own stage, she stills a famous star.
Beyonce’s fans are at anywhere. Even in Malaysia there have also Beyonce’s fans. Beyonce is a sexy star. Since Malaysia is a Muslim country, but there are still have some Malaysian’s Muslim fans of Beyonce. They also feel eagerly to attend Beyonce’s concert in 25th of October 2009, at National Stadium Bukit Jalil, Kuala Lumpur. But, there have arguments occur since Malaysia is a Muslim country and Beyonce is sexy in her appearances. In western country, there will have no such arguments occur. This is because they just go for Beyonce’s concert as a part of their entertainment only. They do not argue about Beyonce’s sexy appearances. Thus, they can accept Beyonce’s sexy appearances in her concert performances. Besides, western countries also have wider area for Beyonce to open her concerts.
After Beyonce is famous, she thinks of having her own product. She has creates and produces a perfume, “Heat”. Now, the perfume has a record of selling $3 million in only a month. It is a good result in the market for Beyonce, since this is the first time she produces and sells her product she has made.
Beyonce is famous because of her sound, talent, and sexy appearances. She composes songs. Besides, she also acts in films, such as The Pink Panther. She has won a lot of awards too. Her kindness is also one of the reasons why people like her. She offers a cheaper price of her concert tickets to those who like her so much but cannot afford to buy the ticket. She donates as charity. She also donates her concert tickets too. She donates to people that needs care and love such as the Haiti.
Beyonce is a successful star in her career. This is because Beyonce has won a Grammy Award since she first start her career as a star compare to the others. In just only the first year, she has already been confirmed by the Grammy Award. She received the Grammy Award just when she first joined the career. She is talented. She knows how to sing, compose songs, and act. Most of the songs in her album are composed by herself.
Beyonce is always keep low profile of hers especially about her relationship status. When reporters ask her about her relationships, she just keeps it low. Even his partner, Jay-Z does the same thing too. This helps to maintain their relationship until a long way. In 2008, both of them get married secretly. When Beyonce receives her sixth Grammy Award, Beyonce thanks her husband when she gives a talk on stage. Until now, after Beyonce and her husband, Jay-Z, get married, they still cooperate with each other to keep low about their relationship.