• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Market Segmentation - How & Why

Extracts from this document...

Introduction

Market Segmentation - How & Why As well as the physical aspect of our store changing we have to look at the market differently. Where it was once possible to take a pile it high sell it cheap approach, to achieve broad appeal to the population we need to cater to the needs of the population. This is achieved by breaking the population into groups and then releasing products and services that meet the needs of these groups. This is known as target marketing. Although we all appreciate the theoretical economies of scale given by mass marketing a single product, there are few products that appeal to everyone. Naturally this has led to a segmentation of markets as companies that marketed one product, now produce a range of products. An example of this is Coca Cola. Originally they sold one product, as well as standard coke we now have diet coke, coke with vanilla, cherry coke, sprite, lilt and many more. By accepting that people have different needs and different shopping behaviours we can market ourselves to these segments and attract new customers. ...read more.

Middle

Situation Specific This refers to the actual situation where the consumption of the product takes place, e.g. special occasions or in groups. Developing these market segments is done through the use of research. Using qualitative or quantative research and then analysing the results one can potentially identify market segments. However it is worth validating that these are real and are not a chance occurrence within the population sample chosen. Much research has been done by ourselves and our competitors on shopping behaviour and the following six groups of shopper have been identified. Habit Bound Die Hard Generally older person, has traditional views, tends to be frugal and sticks to a traditional eating pattern. The Habit Bound Die Hard displays a great amount of loyalty to his supermarket but hates when things are moved around. Self Indulgents Self Indulgents only make up about 15% o the population. They tend not to have any money worries and drink a lot of wine. They generally live in one or two person households and tend to buy expensive coffees. They eat low fat yoghurts and tend to buy convenience ethnic foods. ...read more.

Conclusion

The use of segments enables a company to specifically target an audience within a population. An example would be if I asked all of you what you would go out and spend fifty pounds on if I were to give it to you now. The chances are that everyone would come back with a different suggestion. However it I likely that some of you would go and buy clothes, some you would go and buy CD's or DVD's and some of you may possibly save the money instead. By grouping people together it is possible to target a product at an audience that will wan to buy the product. This should ensure a return on investment quickly for the producer and could lead to rapid growth. However a universal product is unlikely to appeal to a wide range of people so it is possible for a producer to create products for different market segments. Today we are going to discuss in more detail Cola drinks and C.D's as product within our superstores. For the purpose of illustrating segmentation further it is worth noting that recent demographic shift of men drinking Diet Coke has been noted by Coca Cola and their adverts are targeted far less specifically at woman than the old "Diet Coke break" ads of the nineties. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Marketing and Markets section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Marketing and Markets essays

  1. Marked by a teacher

    Marketing mix and segmentation of Sony.

    4 star(s)

    Promotion: The enterprise spends a lot of money on campaigns especially in the USA to squeeze out its biggest rival from the second biggest market2. Task 2 (A) THE U.S.P When first PS1 was launched in 1994, it was the right time to catch the new computer generation and create for them a new entertainment world.

  2. The concept of segmentation and the bases for segmenting markets - The main methods of ...

    resulting segments, thirdly Market targeting - developing measures of segment attractiveness, fourthly - select the target segments, fifthly market positioning - develop positioning for each target segment and lastly - develop marketing mix for each target segment. The segmentation bases are the dimensions or characteristics of individuals, groups or organisations that are used for dividing a total market into segments.

  1. Marketing Planning & Segmentation, Targeting and Positioning

    Craven (2001:163) suggests planning is all about 'making mistakes on paper' so that when it comes to the implementation stage then things are more likely to run smoothly. As the plans are put into action they will need to be controlled and monitored.

  2. Promotional campaign for Pizza Pan foods in Malaysia

    and expanded our market in a way that other competitors could not take advantage of. Our seating area will be clean and the overall ambiance of the place will be pleasing to the senses. The food will be good and the service, friendly and fast.

  1. Plannng and research. I would like to open a African restaurant, food from all ...

    This attracts your guests' attention much more than a" buy one get one free" restaurant promotion. Guests are also more likely to have higher check averages than normal because there is a chance they won't have to pay. It creates a tremendous attention among your core guest base.

  2. Skills and qualities

    really well, so for instance some of the skills may be that they want their staff to take to account is the hotels geography, or be able to be familiar with all the emergency procedures for instance where all the fire exits are located.

  1. Business- Open retail store

    which influence my competitors I will get this information from what i know about marketing for my own business 05-05-07 I did not know the factors which influenced my competitor, but then i thought of the factors which influence my business Task 6d)

  2. Investigating Market

    Moss Bros aim is to provide customers with more quality formal suits which suit everybody's wants and needs. Moss Bros Hire increase profitability by having special deals and half-price i.e. the groom goes free to increase the sales. Making a profit: - This is when a company are set out

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work