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Market Segmentation

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Introduction

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. ...read more.

Middle

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 s*x. 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 targeting a product to both children and adults. Marketers design, package and promote the product to meet the needs of different age groups. For example, Ferro Roche is targeted at a more older, adult target audience rather than children. The UK census 2001 provides broad examples of age groups -0-15, 16-74, 75+. ...read more.

Conclusion

therefore encouraging males to buy the product for females. Socio-economic Markets can be segmented using socio- economic groups. There are 6 socio- economic groups, A, B, C1, C2, D and E. Here are the factors that determine the socio- economic groups: Specific products can be targeted at specific socio- economic groups. For example, 'After Eights' are targeted to socio-economic groups A and B who are more sophisticated and professional as 'After Eights' have a sophisticated image designed for a more sophisticated social gathering. Geographic Geographic segmentation of markets affects the market mix of a product as customers/consumers in different locations have different requirements and so the product may be altered to suit consumer needs. For example climate is different in different locations and the product must be altered to withstand different temperatures. Furthermore, different products are more appealable in different locations, for example chocolate is popular in the UK as it is comforting in the cold climate whereas in hot countries chocolate consumption is lower because it is not as desirable and is inpractical (melts in heat). ...read more.

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