Why Segmentation
Consumer Behavior: Market Segmentation
Contents
Introduction 1
Concepts of Market segmentation 1
Case of a jewelry company 3
Conclusion 7
Reference 8
Introduction
Market segmentation, as a crucial step of marketing, is not what you do to a product, but something you know about your customers. A good knowledge of your customers can enable you to yield twice the result with half the effort. Every consumer is different. Some prefer stylish products, while some want cheap and durable, so it is impossible for a company with limited resource to meet every individual’s need. The best a company can do is to provide products for a certain group of people with same requirement. Thus, the purpose and task of segmentation is to concentrate a company’s energy and resource on a targeted segment so that a competitive advantage can be assured.
Concepts of Market segmentation
When it comes to market strategy, almost all of us will consider these four elements: Product, Price, Place and Promotion. While, before examining 4Ps, we should first segment the market and identify the consumers, which is also called market segmentation. It is the basis of all the other marketing mix. Just like Beane and Ennis eloquently commented, ‘a company with limited resources needs to pick only the best opportunities to pursue’ (Dibb, 1998). Then it comes the market segmentation. Market segmentation is the division of markets into homogenous groups of consumers according to their particular needs and the need of promotion, communication, pricing and other reasons. In another word, each group of consumer share similar habits and attitude towards the product. If the difference between buyers within a segment is small enough, this manager can easily find the right and targeted strategy. As a result, there is a widespread belief that a successful market strategy cannot live without good market segmentation (Gottlieb, 2006).
Market can be segmented according to different
Contents
Introduction 1
Concepts of Market segmentation 1
Case of a jewelry company 3
Conclusion 7
Reference 8
Introduction
Market segmentation, as a crucial step of marketing, is not what you do to a product, but something you know about your customers. A good knowledge of your customers can enable you to yield twice the result with half the effort. Every consumer is different. Some prefer stylish products, while some want cheap and durable, so it is impossible for a company with limited resource to meet every individual’s need. The best a company can do is to provide products for a certain group of people with same requirement. Thus, the purpose and task of segmentation is to concentrate a company’s energy and resource on a targeted segment so that a competitive advantage can be assured.
Concepts of Market segmentation
When it comes to market strategy, almost all of us will consider these four elements: Product, Price, Place and Promotion. While, before examining 4Ps, we should first segment the market and identify the consumers, which is also called market segmentation. It is the basis of all the other marketing mix. Just like Beane and Ennis eloquently commented, ‘a company with limited resources needs to pick only the best opportunities to pursue’ (Dibb, 1998). Then it comes the market segmentation. Market segmentation is the division of markets into homogenous groups of consumers according to their particular needs and the need of promotion, communication, pricing and other reasons. In another word, each group of consumer share similar habits and attitude towards the product. If the difference between buyers within a segment is small enough, this manager can easily find the right and targeted strategy. As a result, there is a widespread belief that a successful market strategy cannot live without good market segmentation (Gottlieb, 2006).
Market can be segmented according to different