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market segmentation

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Introduction

TASK 3 - MARKET SEGMENTATION Market Segmentation: is defined as dividing a large population into separate groups or markets based on a set of common characteristics, each group representing a distinct target market with its own requirements for a marketing program. There are several important reasons why Sony PS3 segment their markets, Among these are the following: * Enhanced profits for its products; consumers have different disposable income. They are therefore different in how sensitive they are to price. By segmenting markets, businesses can raise average prices and subsequently enhance profits. * Better matching of customer needs; Customer needs differ. Creating separate offers for each segment makes sense and provides customers with a better solution. * Better opportunities for growth; Market segmentation can build sales. For example, customers can be encouraged to trade up after being introduced to a particular product with an introductory, low priced product. * Retain more products; customer circumstances change, for example they grow older, form families, change jobs or get promoted, change their buying patterns. By marketing products that appeal to customers at different stages of their life (life-cycle), a business can retain customers who might otherwise switch to competing products and brands. ...read more.

Middle

Many such companies have regional and national marketing programmes which alter their products, advertising and promotion to meet the individual needs of geographic units. Demographic: consists of dividing the market into groups based on variables such as age, gender family size, income, occupation, education, religion, race and nationality. As you might expect, demographic segmentation variables are amongst the most popular bases for segmenting customer groups. This is partly because customer wants are closely linked to variables such as income and age. Also, for practical reasons, there is often much more data available to help with the demographic segmentation process. The main demographic segmentation variables are summarized below: * AGE: Consumer needs and wants change with age although they may still wish to consumer the same types of product. E.g. Sony design, package and promote products differently to meet the wants of different age groups. * Life-cycle stage: A consumer stage in the life-cycle is an important variable - particularly in markets such as electronics and technology. * Gender: Gender segmentation is widely used in consumer marketing. The best example include Sony ps3 games for boys, girls. ...read more.

Conclusion

* Adults (especially 18+ game lovers) the above are the target market for the Sony PS3, because they are the ones who have much interest in the product than others and they are mainly the buyers too. Reasons for Segmenting in this way: * Due to large number of users involved; the number of users involved in using the Sony PS3 is very large, so by doing it in this way the company would be able to meet its targets and aims. * To retain more customers; segmenting the Sony PS3 in this way will help them retain more customers. Retaining more customers will help them retain more profits. * To increase products distributed or sold; segmenting the product in many areas, will force the number of units distributed increase rapidly because of the number of people involved. * To retain more profit; this type of segments will cause the profit of the company to increase because of the number of units involved and the number of new customers also involved in the activity. * To increase its market share; the segmenting of the Sony PS3 in this way will force it the market share of the company to improve/increase. ...read more.

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