Market Segmentation :: Business Management Studies

Market Segmentation What is Segmentation? Market segmentation is the practice of dividing a market into identifiable groups of customers with common characteristics and motivations. This is so that each group can be treated independantly, tailoring the marketing mix to meet the needs of each segment. Furthermore, opportunities for new products and any niche markets are highlighted. Segmentation also portrays which segemets are doing well, which are likey profitable to be profitable/worth pursuing, which segments need additional marketing support and which should be ignored. Psychographic This affects the psychological motivation of the purchaser. It’s based on the benefits that the products/services offer to the purchaser. Factors that affect the buying decisions are increasingly emotive rather than practical. Psychological factors are: - Life style Segmentation is based on actual lifestyle differences as well as perception. Different lifestlyes fall into different catogories, for example modern and trend-setting or traditional with few changes. Another example would be expensive and willing to pay money or unwilling to spend more than that is necessary. - Interests These would include sports, leisure activities and hobbies. - Attitudes Markets can be analysed and segmentated by attitude to politics, lifestyle, certain products. For example an example concerning chocolate and food be that some people would be willing to eat non-organic foods others don't. - Opinions Identifies group with similar opinions on political and social issues. Opinion polls are used to find the moods and feeligs of the target group and the products can be tailored to appeal to the target audience e.g Iceland appeals to consumers due to its no GM product policy. - Values Values are influenced by family and social conditioning and the product can be adapted to reflect values of the product. For example fair-trade chocolate bars may appeal to ethica customers. - Taste Products can be catogrised to be in good or bad taste. Bad taste may be seen as bad or offensive to some people but good to others because its entertaining to others. For example a film with 'gross out' images and storylines offends older people but amuses the youth. This portrays how different people have different tastes. How segmentation has affected the development of DeLights has been incorporated when explaining the marketing mix each of the 4 P's. Demographic Demographic segmentation is where a market is analysed and divided into groups based on demographic factors such as age and sex. These factors relate to the social and economic features of the market being segmented. Demographic variables can be closely related to customer needs and purchasing behaviour, this helps producers target their product more effectively. Age  · Consumer needs and wants change with age although they may wish to sell the same product to different types of people for example Market Segmentation :: Business Management Studies Market Segmentation What is Segmentation? Market segmentation is the practice of dividing a market into identifiable groups of customers with common characteristics and motivations. This is so that each group can be treated independantly, tailoring the marketing mix to meet the needs of each segment. Furthermore, opportunities for new products and any niche markets are highlighted. Segmentation also portrays which segemets are doing well, which are likey profitable to be profitable/worth pursuing, which segments need additional marketing support and which should be ignored. Psychographic This affects the psychological motivation of the purchaser. It’s based on the benefits that the products/services offer to the purchaser. Factors that affect the buying decisions are increasingly emotive rather than practical. Psychological factors are: - Life style Segmentation is based on actual lifestyle differences as well as perception. Different lifestlyes fall into different catogories, for example modern and trend-setting or traditional with few changes. Another example would be expensive and willing to pay money or unwilling to spend more than that is necessary. - Interests These would include sports, leisure activities and hobbies. - Attitudes Markets can be analysed and segmentated by attitude to politics, lifestyle, certain products. For example an example concerning chocolate and food be that some people would be willing to eat non-organic foods others don't. - Opinions Identifies group with similar opinions on political and social issues. Opinion polls are used to find the moods and feeligs of the target group and the products can be tailored to appeal to the target audience e.g Iceland appeals to consumers due to its no GM product policy. - Values Values are influenced by family and social conditioning and the product can be adapted to reflect values of the product. For example fair-trade chocolate bars may appeal to ethica customers. - Taste Products can be catogrised to be in good or bad taste. Bad taste may be seen as bad or offensive to some people but good to others because its entertaining to others. For example a film with 'gross out' images and storylines offends older people but amuses the youth. This portrays how different people have different tastes. How segmentation has affected the development of DeLights has been incorporated when explaining the marketing mix each of the 4 P's. Demographic Demographic segmentation is where a market is analysed and divided into groups based on demographic factors such as age and sex. These factors relate to the social and economic features of the market being segmented. Demographic variables can be closely related to customer needs and purchasing behaviour, this helps producers target their product more effectively. Age  · Consumer needs and wants change with age although they may wish to sell the same product to different types of people for example