According to Armstrong and Kotler (as cited in Nynne Larsen 2010), demographic segmentation separate customers into various segments according to demographic values such as age, gender, family size, family size cycle, income, occupation, education, religion, race, generation, social class and nationality. Gunter and Furnham (1992) stated that every single of the variable are functional in the market segments. In the market segmentation, demographic segmentation frequently used due to the variables was easy to discover and compute. Demographic variables are related with many sales of numerous products and service and then they supply an illustration of the target purchaser so media buyers and others can target a desired yield for target market. Age, gender and income frequently use among the demographic values.
It is a necessity to establish the needs and values of the target customers within each segment, in order for companies to promote their products, brands or services appropriately. Segmentation: Dividing the market or customers into groups basing on similar characteristics. Example: demographically, behavior,
Answer: (a): Market segmentation is the first step in defining and selecting a target market to pursue and penetrate. Basically, market segmentation is the process of splitting up an overall market into two or more groups/classes of consumers. Each group of consumers is called as a market segment. Each group (or market segment) should be similar in terms of certain characteristics or product/ service needs. In business world, market segmentation is considered to be a most important tool in enabling marketers to better meet customer needs and requirements.
The second segmentation category is behavior. Behavior reflects on how the consumer uses their products, feel about them and how to act when in need. This helps a business know what they need to change to acquire the full attention of their
“Until the 1960s, few firms practiced market segmentation” (Lamb, 136). However, marketers today segment a market into “market segments”, or “subgroup(s) of people or organizations sharing one or more characteristics that cause them to have similar product needs” in order to advance their organizations (Lamb, 136). The purpose of “market segmentation”, or the process of dividing a market into those market segments, is to “enable the marketer to tailor marketing mixes to meet the needs of one or more specific segments” and thus “better allocate resources” (Lamb, 137). Perhaps, the most crucial market segmentation strategy is “psychographic segmentation”, which is market segmentation based on“personality, motives, lifestyles, and geodemographics”
It is critical for the effectiveness of every market segment. With it, marketers can also priories their target audiences. If segmentation shows that some consumers would be more likely to buy a product than others, the attention and resources can be better allocated (Dibb, S. 2010). 7. CUSTOMERCLASSIFICATION In the retail sector, satisfying customers and having loyal customers have been so important for years.
Market segmentation separates the general market into categories which can be targeted and marketed effectively. Using market segmentation helps to get a better understanding of your target audience and increase the market return on investment. Technographic segmentation is one of methods that can be used to identify different target segments of this automobile industry. Target market segments: 1. Getting Around: This target segment views vehicles as a functional benefit or a transportation means that helps them to get from one point to another.
Their goal is to design a marketing mix that perfectly matches customer expectations in the target sector. Few companies are big enough to supply the entire market. Most of them must break the aggregate demand in the sectors and ch00se the ones that the company is best equipped to deal with. The key factors that affect market segmentation, clearly identify sect0rs, measure their actual size, and reach them through promotional efforts. Market Segment a defined group of individuals, househ0lds, institutions or organizations that share one or more of the characteristics or needs of the other homogeneous market.
Demographic segmentation is based on measurable statistics. Dividing them into specific groups based on their variable helps us to provide the best match service for them. For example, gender-based segmentation is important, female prefer skincare or spa activities while male prefer sports supplement. On the other hand, we can segment our customer by age. Kids like colorful, cartoon decoration and playing video games while elderly people prefer quite activity and may need some supplement to support.
1. To have an accurate segmentation process can do by differentiate the target market through variables, specify the homogeneous characteristics or same behavior to having prediction on how to reach them or are they the right segment to reach. As well as measuring the market size is important to know how big the target market is and help to prepare for production. Applying this process on Edamame project could get the right segmentation, by starting to determine the value of Edamame product and its impact. Then, identify the right market who needs and want the value of Edamame product by ended up with using three variables to specify the segmentation.