Market Segmentation Essay

An validation cannot satisfy all the needs and wants of all the consumers. Therefore, Market is split up into assorted segments so an organization can focus on the needs and wants of the item consumers who sh be akin needs and demonstrate similar buyer behavior. In the world, there are different types of buyers with their own needs and behavior. atomation is the deal to match groups of the leveragingrs with like needs and wants.Market partitionThe division of a market into different groups or the process of splitting customers in a market into different groups or segments, within which customers show similar buying behavior and share a similar level of interest in the same set of needs and wants satisfied by a seller is called Market naval division.Reasons for segmentation of marketThe reason for segmenting a market is to get your marketing program to focus only on the segment that is more or less likely to buy your offering. Market segmentation makes possible how to u se marketing mix for different target markets. A company is then able-bodied to determine which groups of customers are best suited to serve and which product and go offers get out meet the needs of the customers and will satisfy them. Therefore, the main purpose of segmentation must be how to win and retain the customers you want to serve. If the segmentation process is done properly then it will insure the upper limit return for your marketing and sales expenditures, depending on what you are selling and whether you are selling your offerings to individual consumers or a business.Levels of Market ingredientationSegment merchandiseIndividual marketingNiche MarketingLocal MarketingSegment MarketingDividing the market into different segments on the basis of consistent need. Segmented on basis of broad similarity with regard to nigh attributes. Segmentation is also sometimes identifying, capturing & retaining potential new markets.Individual MarketingExtreme marketing in whic h marketers focus on individual customers. hold the line track of individual tastes & preferences of individual customers. Many companies are approaching individuals done e-mails to promote their products.Niche MarketingMarketers effort to countersink their product or service in smaller markets that have similar attributes and have been neglected by other marketer. Segment further split into sub segments to cater unsatisfied needs of small group is called as niche.Local MarketingMarketers offer customized products to suit the local markets. McDonalds introduced Muslimized or Arabic products such as Big Mac, Halal Chicken, Mac Arabia, and moreVariables to Segment the MarketThere are a number of segmentation variables that allow an organization to divide their market into homogenous groups. These variables will be discussed before long belowGeographicDemographicPsychographicBehavioralGeographic segmentationIt is establish on regional variables such as region, climate, population density, and population exploitation rate. Geographic segmentation divides markets into different geographical res publicas. Marketers use geographic segmentation because consumers in different parts of world vary in characteristics and behaviors. An area can be divided by the town, the region or the country. If you are an organization working on a global scale you whitethorn divide by global regions such as Europe, North America, southwestward America, Asia and Africa.ExampleMcDonalds globally, sell burgers aimed at local markets, for example, They also offer veg burgers in India due to lots of vegetarians and burgers are made from lamb in India rather than beef because of religious issues also.In Mexico more chili act is added and so on.In Muslim countries halal food is offered.In Arabic countries Arabic food is offered like Mc Arabia.Demographic SegmentationIt is ground on variables such as age, gender, ethnicity, education, occupation, income, and family status. Demographi cs originate from the word demography which content a study of population. The population can be divided into age, gender, income, and family lifecycle amongst other variables. As people age their needs and wants change, some organizations intermit specific products aimed at particular age groups. Gender segmentation is normally used within the cosmetics, clothing and magazine industry. Income segmentation is another dodging used by many organizations Products and services are also aimed at different lifecycle segments.ExamplesFor different age groups Nappies for babies, toys for children, clothes for teenagers and so on. Introduction of Maxim, (www.maxim-magazine.co.uk)A male person lifestyle magazine covering male fashion, films, cars, sports and technology.Psychographic SegmentationoIt is based on variables such as values, attitudes, opinions, interests, personality and lifestyle.oIt is used highly in the cordial reception industryoVALS (Values And Lifestyles)Principle Orient ed- principles or beliefs rather than feelings, events, or desire for approval. post Oriented- status or other peoples actions, approval, or opinions. activeness Oriented- action prompted by a desire for social or physiologic activity, variety, and risk taking.Behavioral SegmentationIt is based on variables such as usage rate and patterns, price sensitivity, brand loyalty, and benefits sought. It refers to why people purchase a product or service. How will the product enhance their overall lifestyle? single-valued function is another variable. When should a product be purchased? Occasion segmentation aims to append the reason to buy factor and thus increase sales. Usage rate divides customers into light, medium and heavy users. Heavy users obviously nominate more to turnover then light or medium users, the verifiable of an organization should be to attract heavy users who will make a greater contribution to company sales. It is based on benefits people research when buying a product. It is based on Total satisfaction from a service rather than individual benefits.ExamplesWhen someone is going out to dinner party McDonalds and local restaurant will not come in the same breathe for choices of where to go. When purchasing a computer the benefit sought will be of ease of use. The demand for turkeys increases during Christmas, flowers and chocolates on mothers day and so on.