Case Study. As mentioned in this article, market segmentation is used in order to focus in one main area of the market. In this case, it will be the Muslim market

International Baccalaureate Business Studies

Business and Management

1/31/2012

Case Study – Part A – P. 71

A business can use market segmentation in order to have effective marketing. Breaking down a market into sub-groups is known as market segmentation. A business can then target these different groups and develop products and services for each of them. There are four main ways in which businesses tend to segment their market: geographically, demographically, psychographically, and behaviorally. In this article, it could be identified the use of market segmentation and one type of it.

As mentioned in this article, market segmentation is used in order to focus in one main area of the market. In this case, it will be the Muslim market, because it is mentioned that Marian Salzman, who is one of the world’s foremost trend-spotters, predicted that the next big thing in marketing will the “Muslim Pound.” So for a business it might be a good idea to center the attention into this segment of the market
Demographic segmentation splits people up into different groups according to different characteristics. It can be divided into some sub-categories like age, religion, gender, income, social class, and ethic grouping. The market can be segmented demographically, depending on the similar characteristics the segment shares. As mentioned in this case, the Muslims is part of demographic segmentation because they are a religious group that share similar characteristics and require specific needs such as mentioned in the case “It’s a unique market with a unique set of needs.” And also the ‘sharia’ and ‘halal’ laws, which determine certain rules of this specific religious group.

In conclusion, in this article market segmentation is meant that the market is divided and focused on only one specific area, which in this case will be the Muslims market, so businesses could have effective marketing. And also that they could be segmented demographically, which means that the population could be split into groups depending on certain similar characteristics, because they focus on the similar characteristics of a specific religious group, which are the Muslims.

Case Study – Part B – P. 71

Market segmentation is breaking down a market into sub-groups with similar characteristics, it let a business target ...

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Case Study – Part B – P. 71

Market segmentation is breaking down a market into sub-groups with similar characteristics, it let a business target these groups and develop products and services for each of them. A business can have several benefits from market segmentation.

According to the case of Muslims a small business benefits from market segmentation because they understand its consumers better because the Muslims have unique set of needs and the greater the knowledge they will suit their needs better and in that way it allows the business to sell more products overall. The Muslims will feel that the business is paying attention to their needs and they will develop loyalty to the business. Being focus in one segment of a market which in this case are the Muslims will help increase the profit because they exist more than 5000 millionaires in UK.

In conclusion the benefits that offers financial services will have are that understands its consumer’s better, sell more products, develop loyalty to the business and increase profit.

Case Study – Part C – P. 71

In order to have an effective marketing, a business needs to plan a marketing strategy. The stages through which a business might plan a differentiated or concentrated marketing strategy are: the market segmentation, the market targeting, and finally, the market positioning. In this case targeting Muslim customers might affect a business marketing financial services in a positive way.

Market targeting is the second stage; it involves evaluating market segments, and selecting market segments to target. In this stage of the marketing strategy, businesses have to evaluate market segments, this means that it is necessary to evaluate which market segments it is worthwhile targeting. In this case it is mentioned by Mintel, that the spending power of Muslim people in the UK is £20.5 billion. This means that if a business focuses in selling more products counting the needs of the Muslims, they can increase their sales and gain more profit because there is a big section of Muslims in the UK. Another phase of the market targeting is to select market segments, which means choose which will be its target market. In this case it is mentioned that there are more than 5,000 Muslim millionaires in the UK. It can be inferred that businesses may want to select the Muslim millionaires as their target market in order to position their products according to Muslims unique needs to gain financial reward.

In conclusion, because the Muslim market is a high opportunity area, targeting this segment of the market will affect a business marketing financial services in a positive way.

Hall, Dave, Rob Jones, Carlo Raffo, Alain Anderton, Ian Chambers, and Dave Gray. Business Studies. Fourth. Harlow: Pearson Education, 2008. Print.