Preview

Segmentation of Dell

Powerful Essays
Open Document
Open Document
862 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Segmentation of Dell
Segmentation and customer profile.

Segmentation is dividing a market into a smaller groups that shared similar needs, wants, characteristics, and behaviours towards the goods and services. (reference). The market segmentation is a must and important to the all oraganizations. This is because each customers have different needs and wants, so that by segment the market, the organization can identify which customers that can match with their products and services. In Dell, the segmentation is a backbone for them. There are two segmentation criteria in Dell; segmenting consumer market and segmenting business market.

In the segmenting consumer markets, there are geographic, demographic, socio-economic, behaviour and psychographic segmentation. In Dell, the purpose to segment the consumer markets is focus to the personal users or for home users. The geographic segmentation refer to divide a market into a different geographical units such as nations, states, regions, countries, cities or neighbourhoods. (reference). In Dell, they segment the market to all nations. This is because Dell is spealize in online purchasing. However, Dell more focus on segment the developed and developing countries because percentage of consumer that used technology from developed and developing countries are high. In other hand, the demographic segmentation is dividing a market into a group based on age, gender, education etc. Consumer needs and wants change with age. (reference). In Dell, there are many different types of consumers; generation x, generation y and baby boomers. For example, consumers from generation y might need a lot of new applications or software in their computers. Then, in Dell, the socio-economic segmentation is based on consumer’s income. Based on their income, Dell can easliy identify and divide them into a similar group that share same range of income. Next, behavior segmentation is dividing a market based on consumer knowledge, attitude, use or response to a

You May Also Find These Documents Helpful

  • Good Essays

    Market segmentation- ‘’ market segmentation is the technique used to enables a business to target the needs of different customers. It is about identifying the specific needs and wants of customers…

    • 3211 Words
    • 13 Pages
    Good Essays
  • Powerful Essays

    MARKET SEGMENTATION

    • 4820 Words
    • 14 Pages

    Market segmentation provides businesses with the possibility of customizing a unique set of elements known as the 4P’s (product, price, place, and promotion) for specific target markets. Therefore, it allows them to satisfy their customers’ needs in a more effective way, through a value proposition that is potentially superior to that of any other competitor. Market segmentation refers then to the process of defining and breaking down a wide market into clearly identifiable and homogeneous groups of consumers with similar characteristics, wants, and needs.…

    • 4820 Words
    • 14 Pages
    Powerful Essays
  • Better Essays

    Morrisons vs Tesco

    • 1261 Words
    • 6 Pages

    Segmentation is the process of breaking down the total market for a product or service into distinct groups. The essence of the marketing concept when taking decisions is to place customer needs at the centre of the organisation. This approach stems from a number of different factors, such as competition increasing; customers well educated; patterns of demands which is relatively changing and many others. For example when the banking system was developed, Banks were mostly known to put the customers’ excess money into a safe place while earning some interest on the capital and to borrow money in order to finance personal requirements. Nowadays, customers are looking for much…

    • 1261 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    The fundamental component of Market segmentation is a market-based strategy. A market segment is a purchase behaviors and different descriptive characteristics and specific group of customers with distinctive customer needs (Baker M.J, 1995) By categorizing markets into sub sectors, targeting marketing effort in such a way as to meet the other requirement and technical requirements of each of these, organizations may be able to secure big competitive position than if they attempted to satisfy the fundamental requirements of the market as a whole. In market segmentation there are four criteria that have to be satisfied in order for market segmentation to be effective. A market segment should be accessible, identifiable, substantial, and stable. In Identifiable, there should be indicators of observable that enable the segment to be defined and quantified (Baker M.J, 1995). Accessible, that is, it should be probable to target specifically the segment using distribution channels and existing communication. In Substantial, that the segment should be of enough size to make the effort involved in segmentation worthwhile. In the Stable, the segment there should be capitalized by sufficient time on the investment implicated in segmentation (Baker M.J, 1995).…

    • 1889 Words
    • 6 Pages
    Powerful Essays
  • Best Essays

    Organizational Presence

    • 1186 Words
    • 5 Pages

    Market segmentation is the process of grouping a market into smaller subgroups (Market segment, 2010). Advancements in technology offer customers options when it comes to shopping and getting the things they want and need. No industry has been completely untouched by technology. Companies are being forced to broaden their considerations when they begin to reach out to the different segments they target. It’s not only the younger generation who is utilizing new technology to transact daily business affairs. A…

    • 1186 Words
    • 5 Pages
    Best Essays
  • Powerful Essays

    Segmentation as known as a process of distinguish buyers which differ in several ways into groups regarding to their needs, characteristics or behaviour. Market segments exist within feckly market. As a marketer, they have to try to different segmentation variables, alone and in combination to find out the best and most meaningful way to identify and analyze the market structure so it is more easily for marketer to achieve in business market ( Kotler. P et al.2006, 218 ). A seller will create a separate marketing program for each buyer as classifying according to their personal preference. Market segmentation comes before the second step and third step, which is market targeting and market positioning in develop idea of targeting market. There are four main major variables to observe in order to analysis consumer market segments, which is:-…

    • 1609 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    In a nutshell, segmentation is the process of dividing a broad market into specific target group. In marketing, segmentation is crucial in creating a successful marketing strategy, because marketers are then able to identify consumers who have common needs and applications for the relevant goods and services. For example demographics such as age, gender and ethnicity are one of the many criteria when segmenting a market.…

    • 1660 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    Segmentation consists in dividing a population into homogeneous groups of people; these groups must be as different as possible. A business segments to better meet customer’s expectations, to exploit new market opportunities and to concentrate its forces and place of battle. Segmenting customers is to cut it into homogeneous groups, based on specific criteria, each group being distinct from each other and can be chosen as the target of a marketing action. There are many possible criteria for segmentation, which can be grouped into broad categories:…

    • 1931 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Customer segmentation consists of dividing the market into various parts based on factors that can be commonly associated with customer base. For example age, gender, sex, income and other factors can influence creating a market segment. Marketing is becoming an important factor within business operations and growth. Value is defined as the customer’s perception of all the benefits of a product or service weighed against all the costs of acquiring and consuming it. Benefits include functional, experiential and/or psychological. Market segmentation is composed of two distinct groups, 1) have coming needs and 2) will respond similarly to a marketing action. Market segmentation could be based on various different factors. Geographic segmentation is consists of dividing the market into geographic units. Dividing the market on the basis of demographics variables such as age, sex, family size, education, income and social class is called demographic segmentation. Dividing the market on the basis of personality and/or lifestyle is referred to as psychographic…

    • 1737 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Roy Rogers

    • 864 Words
    • 4 Pages

    • Segmentation: the subdividing of a market into homogenous subsets of customers, where any subset can be selected as a market target to be reached with a distinctive marketing mix…

    • 864 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    Market Segmentation -Hmv

    • 1861 Words
    • 8 Pages

    Market segmentation is the fundamental component of a market-based strategy. A market segment is a specific group of customers with distinctive customer needs, purchase behaviours and different descriptive characteristics. (Best, 2000) By categorizing markets into sub sectors, targeting marketing effort in such a way as to meet the technical and other requirements of each of these, organisations maybe able to secure greater competitive position than if they attempted to satisfy the general requirements of the market as a whole.…

    • 1861 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    Market Segmentation

    • 354 Words
    • 2 Pages

    Market segmentation is an essential part in today's business world. It is because not all customers have the same requirement and a market strategy which does not recognize this fact will result business failure. Market segmentation is the process of splitting customers, or potential customers within a market into different groups, or segments, within which customers have the same or similar requirements satisfied by a distinct marketing mix. Nike has been successful in market segmentation for selling their soccer boots, which resulted in a significant market share in that particular product category in recent years.…

    • 354 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    As part of the analysis, we are segmenting the market based on demographics and psychographics. Demographic segmentation is based on financial and educational parameters. Psychographic segmentation is based on lifestyle and values.…

    • 598 Words
    • 3 Pages
    Powerful Essays
  • Powerful Essays

    Market segmentation is one of the central pillars of modern marketing and is found at the very core of the marketing process. Some writers suggest that segmentation is the most important activity within modern marketing. This claim is debatable but what is true is that the general principles and processes of market segmentation are absolutely vital to effective marketing strategies for the vast majority of firms operating in today’s highly competitive economy.…

    • 4588 Words
    • 19 Pages
    Powerful Essays
  • Good Essays

    The Segmentation "is the process of dividing the market potential in different subsets (niches) of consumers and selecting one or more segments to achieve the goal or target audience." This segmentation strategy is discovered the needs and desires of groups consumers to promote products and services that meet their needs.…

    • 835 Words
    • 4 Pages
    Good Essays

Related Topics