Market Segmentation

Market segmentation is the division of the total market into smaller, relatively homogeneous groups. It is necessary to segment or classify the various people or institutions in order to identify those with sufficient purchasing power, authority, and willingness to buy. Because no single marketing mix can satisfy all marketing segments, it is important to establish target markets and apply the appropriate marketing strategies in order to maximize market share. Since 1887, The Raleigh Bicycle Company has been building innovative, high quality bicycles that appeal to various segments of the market population. Geographic and demographic criteria have been established to facilitate their segmentation. For instance, Raleigh maintains that most anyone anywhere has a need for a bicycle. No matter what type of terrain the consumer lives in, they have a bike to suit their needs. They offer bicycles for street riding, rough terrain recreation, and racing, to name a few. They take into account the varying lifestyles of consumers by offering products for the very active cyclist to the young, first-time cyclist, and everywhere in between. There are no gender barriers when it comes to the marketing of their product. Males and females alike are provided products that will appeal to their differing styles and tastes. The varying physical attributes are catered to as well by offering several sizes to choose from within each product line. A consumer's age is also not a problem when it comes to finding a product to match a buyer's needs. They have a complete line of children's bikes, several lines to match the needs of more mature cyclists and even a retro line to satisfy the nostalgic consumer who is looking for a bicycle reminiscent of one they used to own decades ago. Owning a quality bicycle is also dependent on price. Raleigh has provided various price points within their product lines in an attempt to meet the needs and desires of each of their potential