Marketing
2.1 Define segmentation (using more than just the textbook’s definition)
According to Kotler et al. 1999, a market segment consists of consumers who respond in a similar way to a given set of marketing stimuli. Segmentation is the analytical dissection of a set of customers that possess the same attributes. A group of people would be divided into subsets based on their segmentation variables that are Geographic, Demographic, Psychographic and Behavioural (Cyr, Donald and Douglas Gray 2009). Market segmentation is essential to provide a higher value to consumers because customers might need a separate product for a different group. We need to segment the market in order to identify the opportunities and needs of a brand as it also allows a business to focus on their main objective.
2.2 Explain segmentation
A company can hardly ever satisfy everyone of the market. Therefore, segmentation helps firms to divide a market into a several levels of potentials (Kotler, 2003). For instance, geographically, KIT KAT™ has an enormous target market to focus on, because it is a multi-national brand that includes a worldwide market. What they did is, they created a special formula for tropical weather countries like Malaysia and Thailand so that the chocolate do not melt under a warm temperature. Demographically, KIT KAT™ targeted men and women from all walks of life that particularly devoured chocolate snacks. Psycho graphically, KIT KAT™ divides the market into groups according to their lifestyles and life values either according to Social- Economic scale or their interests and beliefs. Hence, KIT KAT™ appealed to adults and children who indulged breaks between work and studies.
2.3 Three benefits to KIT KAT™ from using segmentation
Focus- KIT KAT™ can focus towards the goal of the brand. The better the focus the higher the return would be.
Market expansion- KIT KAT™ brand expansion is worldwide and instantly recognizable by customers all around the world. Once KIT KAT™
According to Kotler et al. 1999, a market segment consists of consumers who respond in a similar way to a given set of marketing stimuli. Segmentation is the analytical dissection of a set of customers that possess the same attributes. A group of people would be divided into subsets based on their segmentation variables that are Geographic, Demographic, Psychographic and Behavioural (Cyr, Donald and Douglas Gray 2009). Market segmentation is essential to provide a higher value to consumers because customers might need a separate product for a different group. We need to segment the market in order to identify the opportunities and needs of a brand as it also allows a business to focus on their main objective.
2.2 Explain segmentation
A company can hardly ever satisfy everyone of the market. Therefore, segmentation helps firms to divide a market into a several levels of potentials (Kotler, 2003). For instance, geographically, KIT KAT™ has an enormous target market to focus on, because it is a multi-national brand that includes a worldwide market. What they did is, they created a special formula for tropical weather countries like Malaysia and Thailand so that the chocolate do not melt under a warm temperature. Demographically, KIT KAT™ targeted men and women from all walks of life that particularly devoured chocolate snacks. Psycho graphically, KIT KAT™ divides the market into groups according to their lifestyles and life values either according to Social- Economic scale or their interests and beliefs. Hence, KIT KAT™ appealed to adults and children who indulged breaks between work and studies.
2.3 Three benefits to KIT KAT™ from using segmentation
Focus- KIT KAT™ can focus towards the goal of the brand. The better the focus the higher the return would be.
Market expansion- KIT KAT™ brand expansion is worldwide and instantly recognizable by customers all around the world. Once KIT KAT™