Watch Segmentation Essay Example
I. Watches
In this first case we deal with a relatively simple mode of segmentation analysis. The most productive way of analyzing the market for watches turns out to be segmentation by value. This approach discloses three distinct segments, each representing a different value attributed to watches by each of three different groups of consumers:
1. People who want to pay the lowest possible price for any watch that works reasonably well. If the watch fails after six months or a year, they will throw it out and replace it.
2. People who value watches for their long life, good workmanship, good material, and good styling. They are willing to pay for these product qualities.
3. People who look not only for useful product features but also for meaningful emotional qualities. The most important consideration in this segment is that the watch should suitably symbolize an important occasion. Consequently, fine styling, a well-known brand name, the recommendation of the jeweler, and a gold or diamond case are highly valued.
New Criteria for Market Segmentation 4
In 1962, my research shows, the watch market divided quantitatively as follows:
Approximately 23 % of the buyers bought for lowest price (value segment #1).
Another 46% bought for durability and general product quality (value segment #2).
And 31% bought watches as symbols of some important occasion (value segment #3).
Defining and quantifying such segments is helpful in marketing planning–especially if a watch company's product happens to appeal mostly to one segment or if the line straddles the three segments, failing to appeal effectively to any. Without such an understanding, the demographic characteristics of the market are most confusing. It turns out, for example, that the most expensive watches are being bought by people with both the highest and the lowest incomes. On the other hand, some upper income consumers are no longer buying costly watches, but are buying cheap,
In this first case we deal with a relatively simple mode of segmentation analysis. The most productive way of analyzing the market for watches turns out to be segmentation by value. This approach discloses three distinct segments, each representing a different value attributed to watches by each of three different groups of consumers:
1. People who want to pay the lowest possible price for any watch that works reasonably well. If the watch fails after six months or a year, they will throw it out and replace it.
2. People who value watches for their long life, good workmanship, good material, and good styling. They are willing to pay for these product qualities.
3. People who look not only for useful product features but also for meaningful emotional qualities. The most important consideration in this segment is that the watch should suitably symbolize an important occasion. Consequently, fine styling, a well-known brand name, the recommendation of the jeweler, and a gold or diamond case are highly valued.
New Criteria for Market Segmentation 4
In 1962, my research shows, the watch market divided quantitatively as follows:
Approximately 23 % of the buyers bought for lowest price (value segment #1).
Another 46% bought for durability and general product quality (value segment #2).
And 31% bought watches as symbols of some important occasion (value segment #3).
Defining and quantifying such segments is helpful in marketing planning–especially if a watch company's product happens to appeal mostly to one segment or if the line straddles the three segments, failing to appeal effectively to any. Without such an understanding, the demographic characteristics of the market are most confusing. It turns out, for example, that the most expensive watches are being bought by people with both the highest and the lowest incomes. On the other hand, some upper income consumers are no longer buying costly watches, but are buying cheap,