Market Segmentation †How & Why Essay -- Business Management Studies

mart Segmentation How & WhyAs head as the physical spirit of our store changing we devour to lookat the merchandise differently. Where it was once possible to take a pileit high sell it sporty approach, to achieve broad bring up to thepopulation we need to cater to the inevitably of the population. This isachieved by breaking the population into groups and then releasingproducts and services that accumulate the needs of these groups. This isknown as target marketing. Although we all appreciate the theory-basedeconomies of scale given by mass marketing a individual product, there arefew products that appeal to everyone. Naturally this has led to a sectionation of markets as companies that marketed one product, nowproduce a start out of products. An event of this is Coca Cola. Originally they sold one product, as well as standard speed of light we now havediet coke, coke with vanilla, cherry coke, sprite, lilt and many more.By accepting that people have different needs a nd different shoppingbehaviours we can market ourselves to these segments and move in newcustomers. There are six steps to market divider, targeting & pose and these are1. Identifying qualities for segmenting the market2. Developing profiles of the segments created3. Develop measures of segment attractiveness4. consume target segment5. Develop positioning for each target segment6. Develop marketing mix for each target segment.We have talked nearly segmenting the market. The question is how do wedo this? There are many ways to segment. You could do this basedupon household income, gender, age, previous purchases etc. In circumstancethere are many ways to identify different market segments and I willbriefly the more commonly used methods.geographicIt is possible to segment the population according to Geography,people from the North salute more Irn Bru than those from the South. This can be measured by the success of advertising, an example beingthe Jamie Oliver advert for Sainsb urys was less successful in thenorth.Demographics.This is where segmentation is done by using personal characteristicsof the population Age, gender, income, stage in the family life cycleetc.Socio Economic Grouping. This is based upon the occupational position of the head of thehousehold. It is based on the traditional social class schema of thiscount... ...e of segments enables a company to specifically target anaudience within a population. An example would be if I asked all ofyou what you would go out and drip fifty pounds on if I were to giveit to you now. The chances are that everyone would come buttocks with adifferent suggestion. However it I likely that some of you would goand buy clothes, some you would go and buy CDs or DVDs and some ofyou may possibly save the cash instead. By grouping people togetherit is possible to target a product at an audience that will wan to buythe product. This should hear a return on investment quickly forthe producer and could drag to r apid growth. However a universalproduct is unlikely to appeal to a wide range of people so it ispossible for a producer to create products for different marketsegments. Today we are acquittance to discuss in more detail Cola drinksand C.Ds as product within our superstores. For the purpose ofillustrating segmentation further it is worth noting that newdemographic shift of men drinking Diet Coke has been renowned by CocaCola and their adverts are targeted far less specifically at womanthan the old Diet Coke break ads of the nineties.