Concept Of Market Segmentation Marketing Essay The marketing theory demonstrate that to develop a successful marketing strategy correctly, service marketers must develop segmentation strategies based on the attributes and behaviour patterns of target customers. These attributes would be related to the use of the service The Concept Of Market Segmentation Marketing Essay Objective Of Study. To understand market segmentation and consider why it is used. To examine how companies segment The Process of Market Segmentation. The intricacies involved in market segmentation are said to make it an exacting Methods of Q1) Market segmentation is the process of dividing a market up into different groups in order to create different products to meet specific needs. Guinness represents several layers of segmentation, youth, gender wealth and lifestyle. We feel that Demographic Segmentation is the most relevant to our chosen product Guinness
Essay about Market Segmentation - Words | Bartleby
Targeting a market is a very powerful strategy. It is the amount of marketing effort to dominate a market for a particular group of people. Market segmentation is the procedure of classifying and targeting groups of beings who are parallel to one another. Markets can be segmented in many altered ways: by product or service needs, by understanding the price, by physical areas, by demographic segment, or lifestyles.
Successful segmentation depends on considerate what consumers need, market segmentation essay, how groups of consumers vary from each other, market segmentation essay, and how people decide for the products.
The concept shows us that the group searches for and diversifies patterns in the data, market segmentation essay. Rigorous market segmentation essay techniques including factor analysis, discriminant analysis, k-means and two step clustering, latent class segmentation, market segmentation essay, and Factor Segmentation are based on customers into sets with similar outlooks, needs, and longings. The size and market possibility of each customer segment is firm, it comes along with the positioning and demands that should be active to reach in every segment.
Factor Segmentation. Factor Segmentation was formed by the factor analysis hence, market segmentation essay, the name. The model segments the defendants on an equally special origin i.
Factor Segmentation crops coherent groups of defendants with very similar aims and opinions, and is an important method in emerging targeting, positioning, and marketing strategies.
K-Means Cluster Analysis. K-means cluster analysis mianly categorise relatively parallel groups of defendants based on selected individualities, with the help of an algorithm that can take care of large numbers of defendants, market segmentation essay.
This process attempts to recognise parallel groups of defendants based on selected individualities, market segmentation essay. Two Step Cluster Analysis, market segmentation essay. This technique is a newcomer in the market. It uses classified and processed analysis and is aimed to take care of major data sets. The algorithm hired by this procedure has several desirable features that differentiate it from orthodoxl k-means clustering methods: the supervision of clear-cut and constant variables, and mechanical selection of the number of public.
By comparing the principles of a model-choice criterion across altered assembling solutions, the process can automatically take care of the top number of masses. Latent Class Cluster Analysis. Latent class group analysis originates an impartial segmentation solution that enhances a huge amount of groups and the appropriate of the segmentation model to the data. This model can predict patterns in multiple dependent variables such as outlooks, market segmentation essay, and conducts as the reason of segment membership.
It market segmentation essay introduces data from various types of questions and diffrent types of masses e.
as covariates that resembling with the needs, approaches, and actions. Defendants are allocated to the group to which they have the maximum chance of going. Latent Class Choice Modelling. Study defendants choose their maximum and minimum favourite sets of product welfares and rate the inspiration of these welfares on the purchase result.
Latent class choice modelling diversies custormers from groups based on their priority product benefits. This particular kind of segmentation is ideal for converting product assistances or packages to match segment preferences, allowing the firm to make the most of business performance. Linking the information in these numerous databases produces the importance of each and every database.
They "bend" the segmentation key in a way that optimally finds and generates "hooks" into each record, while supporting the basic structure of the parts, market segmentation essay. We can apply these "bending" techniques to recognise the high-potential customer segments that creates special marketing consideration, market segmentation essay. In easy words we can say Market Segmentation diversifies the total market into controled and similar kind of natured subgroups of consumrs, each having its own special requirements and characteristics.
This allows the company to recreate its output, advertising messages and marketingl methods to correspond to the needs of particular segments.
Calculated segmentation gives the major selling opportunities and to tailors it's marketing activities to satisfy on its consumer needs. The main motive of targeting is to evaluate the attractiveness of each and every segment of its buying power, size, growth and positioning of the market, competiton etc.
protecting a target market also requires a market segmentation, "the process of pulling market segmentation essay the entire market as a whole and separating it into manageable, disparate units based on demographics" is the main aim of targeting Kotler After this process is follwed by a particular strategy or a product itself for each targeted segment. Target marketing makes the promotion, pricing and distribution of the particular products or services in a targeting segment.
Initially, one thing that should remain in mind should be that the company should make sure that the target market is not same to segmentation. Segmentation is just the initial step of the target market.
Market segmentation essay market follows different basis of segmentation. Initially, market segmentation essay, the first thoght in our mind should be that the target market is not similar to segmentation. Segmentation is only the initial step of the target market.
After evaluating various segments, the firm can consider five patterns in the target market selection, which are market segmentation essay Single Segment concentration: The brands in the market whose main focus is only on one segment, market segmentation essay.
For example, market segmentation essay, Zodiac brand focuses on formal wear for executives and businessmens. Through main aim marketing, the company gains a bold information and understanding of the segment needs and gains a strong market presence. But, a particular market's growth can go down or a rival may invade the segment. For example, when Digital camera technology was introduced in the market, Kodak's market segmentation essay share started to degrade gradually and they could not stand their share as new competitors like Sony and Nikon had arrived.
Selective Specialization: A market segmentation essay selects numerous segments, each objectively attractive and appropriate to the needs. There might be minor or no synergy among them but each and every firm promises to be a money-maker.
For example, Cadbury's advertising targets audience of a wide range with one select ad for each segment. Product Specialization: A surgical equipment manufacturer makes different equipments for different customer groups such as University, Govt. The risk is that the product may be replaced by newer technologies which can give a major impact in terms of their sales and the fortune of the company. Market Specialization: A company gains strong good will in serving a customer group and becomes a source for many products for the customer group can use.
The downfall is that the consumer group suffers budget cuts or reduced amount market segmentation essay size.
Full Market Coverage: The company aims to all consumer groups with all the products that might be needed. Only very few companies like Microsoft SoftwareGeneral Motors VehicleDell Electronics Nokia communications etc. has the capacity to take a full market coverage strategy. They can reach the whole market via Undifferentiated Marketing, market segmentation essay, where the companydo not care about segment differences and Differentiated marketing, where the firm offers varioust products for different segment, market segmentation essay.
A marketing strategy case study analysis based on Leeds Castle, a tourist attraction located in UK, Kent which aims to servel the entreaty of the castle to the public and the perception that can accompany historical attractions by giving everything in a route of campaigning to encourage repeated visits for their upliftment, with increased day visitor numbers in coming years, market segmentation essay, particularly during the winter period, which is also their main aim.
Explains the importance of marketing which has the main focus market segmentation essay the various events that took place at the castle the whole year, while generating some interests to the family market and to the residents who were living nearby. Describes the marketing strategy developed by Zest, the UK full-service marketing agency, which had the main focus on its 'Key to the Castle' concept: which meant an annual pass to the castle to replace normal one-day tickets, this also allowed visitors to pay just once but to visit all year round and also resulted with increase interest of many, market segmentation essay, while the single-payment nature of the pass allows Leeds Castle, a registered charity, to class it as a donation and so claim Gift Aid tax relief on day visitor entrances.
Therefore, market segmentation essay, increasing the revenues without taking a higher price directly from the customers. This highlights the modification of Leeds Castle's advertising to incorporate the central marketing concept which was a huge relief later on as the strategy became very successfull.
The research highlights bthe comparisonamong the market as a whole with the profile of visitors to other attractions, market segmentation essay. It also was concerned to the peace and tranquility of the setting as alike to the hustle and bustle of city life, with the double meaning market segmentation essay "You Could be Here All Day" used ironically at road choke points.
The marketing strategy later proved successful, with a raised amount of domestic visitors and a higher recall of the advertising material. It was very important, however, that market segmentation essay message should match the experience as said in the advertismenthence a serious targeted approach was the aim throughout the visitor offering, market segmentation essay. For example, the catering outlets in the castle adopted a more modern style, with new and healthy food options for the visitors to choose from.
The starting analysis showed that the last offering was not catering for the higher-spending Cosmopolitan group, market segmentation essay, who like to have lighter, more contemporary and healthy options to eat from. A minor follow-up study was conducted with the visitors to the castle, identifying their reactions to the recent catering offering and the market segmentation essay of the main catering outlet. Market segmentation essay study confirmed the need for a tuning to the menu and feel of the area for an exotic experience.
Dominant themes were like: the need for more of a café feel, market segmentation essay, market segmentation essay food options and less of a restaurant-style catering, and something which makes the place different from any other location.
The American Marketing Association AMA defines a brand as a "name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers. To succeed in branding one must understand the requirements of the customers.
It is the total amount of their experiences and knowledge that make individuals influence, including many which were not even expected. A strong brand name is very precious as the battle for customers is getting warmer day by day. It's important to spend time investing in researching, defining, and building your brand according to the taste and preferance of the customers.
After all a brand of the company is like the source of promise to their customers. Much has been written about the power of their brands that has allowed them to dominate their respective industries not only in the domestic markets but also globally. The dynamics and the cultural aspect that are the powerful underlying forces behind these brands are rarely talked about. But to achieve such strong brand equity, companies need to develop a culture and an orientation that not only supports market oriented thinking but also nurtures the integration of cross functional integration of thought and activities.
Market orientation is usually defined as the organization wide generation, dissemination, and responsiveness to market market segmentation essay. This definition at once changes the dominant paradigm that has defined marketing for decades. Marketing market segmentation essay traditionally been defined within the narrow confines of the 4P framework. Such a conceptualization of marketing has relegated marketing to a tactical discipline to be performed by middle level marketing managers who did not possess the overall holistic view of the organization.
But the connected knowledge economy, globalizing, converging and consolidating industries, fragmenting and frictionless markets, empowered customers and adaptive organizations among others are forcing organizations to alter their view of marketing.
The concept of market orientation is built on three pillars of customer focus, coordinated marketing and profitability, market segmentation essay. The next section further elaborates these three constructs and how they allow companies to create a strong internal culture that can support building brands.
Customer focus: Organizations have traditionally emphasized either profitability or market share growth as their guiding orientations. As the fundamental responsibility of any organization is to maximize shareholder value, market segmentation essay, such an orientation did not seem wrong.
Further, with the advent of branded goods, globalization and increasing competition, companies placed a very high emphasis on products. But all these extant orientations have been challenged with the explosion of the Internet and resulting empowerment of customers. Internet to a great extent reversed the information asymmetry and allowed access to hitherto unavailable information about product features, price and peer recommendation. These factors are forcing companies to shift their fundamental orientation from that of profitability, growth and products to customers.
Customer centricity is at the center of creating any future corporate strategies.
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Concept Of Market Segmentation Marketing Essay The marketing theory demonstrate that to develop a successful marketing strategy correctly, service marketers must develop segmentation strategies based on the attributes and behaviour patterns of target customers. These attributes would be related to the use of the service The Concept Of Market Segmentation Marketing Essay Objective Of Study. To understand market segmentation and consider why it is used. To examine how companies segment The Process of Market Segmentation. The intricacies involved in market segmentation are said to make it an exacting Methods of Q1) Market segmentation is the process of dividing a market up into different groups in order to create different products to meet specific needs. Guinness represents several layers of segmentation, youth, gender wealth and lifestyle. We feel that Demographic Segmentation is the most relevant to our chosen product Guinness
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