Market Segmentation – Industry Free Essay Example

In this way of segmenting market, a company should produce and sell the right products In the right geographic areas at the right times. Demographic segmentation Demographic segmentation Is the process of segmenting market based on variables such as gender, family size, family life cycle, Income, occupation, education, religion, race and nationality. This is the most popular bases for segmenting customer groups because consumer needs, wants and usage rates often vary closely with anemographic variables and easier to measure than most other types of variables.

Age and life-cycle stage different marketing approach for different age and life-cycle groups. However, marketers must be careful to guard against stereotypes when using this kind of segmentation. Although you might find some 70-year-olds in wheelchairs, you will find others on tennis courts. Thus age is a poor predictor of a person’s life cycle, health, work or family status, needs and buying power. Age and life-cycle approach are often use by insurance companies. ; Gender This kind of segmentation has long been used in clothing, cosmetics and magazines.

The car industry uses gender segmentation extensively. Women have different frames, upper-body strength and greater safety concerns. To address these issues, car makers are designing cars with hoods and boots that are easier to open, seats that are easier to adjust, and seat belts that fit women better. They’ve also increased their safety focus, emphasizing features such as air bags and remote door clocks. In advertising, more and more car manufacturers are targeting women directly.

In entrants to the car advertising of past decades, these ads portray women as competent and knowledgeable consumers who are interested in what a car is all about, not Just the color.

; Income Income segmentation has often been used by the marketers of such products and services as cars, boats, clothing, cosmetics and travel. Many companies target affluent consumers with luxury goods (perfumes, Jewelry, bag and many others fine fashion), and inconvenience services but not all companies using income segmentation target the affluent, many companies profitably target low-income nonusers.

Income alone, however, does not always predict the customers for a given product. Multivariate demographic Most companies will segment a market by combining two or more demographic variables, e. G. Soap. Cryptographic segmentation Cryptographic segmentation is the process of segmenting a market into different groups based on social class, lifestyle or personality characteristics. People in the same stereographic group can have different Cryptographic profiles. ; Socioeconomic status furnishings, leisure activities, reading habits and store choice.

Many companies design products or services for specific socioeconomic classes. ; Lifestyle People’s interest in various goods is affected by their lifestyles and many goods they buy are expressions of their lifestyles. Marketers are increasingly segmenting their markets by consumer lifestyles. This market strategy has been used for products such as beverage (soft drinks, coffee, etc) luxuries product (cars, cellular phones, jewelries, etc). ; Personality Marketers must give their products personalities that correspond to consumer personalities.

Successful market segmentation strategies based on personality have been used for products such as cosmetics, cigarettes, insurance and liquor. Behavioral segmentation Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses or responses to a product. Many marketers believe that behavior variables are the best starting point for building market segments. ; Occasions Buyers can be grouped according to occasions when they get the idea to buy, actually make their purchase, or use the purchased item. Occasion segmentation can help firms build up product usage.

This segmentation approach has been used by The coca cola company, Kodak, etc. ; Benefits A powerful form of segmentation is to group buyers according to the different benefits that they seek from the product. Companies can use benefit segmentation to clarify the benefit segment to which they are appealing, its characteristics and the major competitive brands. For example, toothpaste that can whitened tooth. ; User status A market can be segmented into non-users, ex-users, potential users, first-time users and regular users of a product.

High-market-share companies are particularly interested in attracting potential users, whereas smaller firms will try to attract regular users. Potential users may require different kinds of marketing appeals. For example, blood donors, Liquor drinkers, cigarettes users, etc. Market can also be segmented into light-, medium-, and heavy-user groups. Heavy users are often a small percentage of the market but account for a high percentage of total buying. For example, beer drinkers, soaps users, toiletries users, etc. ; Loyalty status Buyers can be divided into group according to their degree of loyalty.

Dome nonusers are completely loyal-they buy one brand all one time. Companies must be careful when using brand loyalty in their segmentation strategies. What appear to be brand-loyal purchase patterns might reflect little more than habit, indifference, a low price or unavailability of other brands. Thus, frequent or regular purchasing may not be the same as brand loyalty-marketers must examine the motivations behind observed purchase patterns. For example, consumers are loyal to Posted than other toothpaste’s brand. ; Buyer readiness stage At any time, people are in different stages of readiness to buy a product.

Some people are unaware of the products; some are aware; some are informed; some are interested; some want the product; and some intend to buy. The initial marketing effort should thus employ high awareness-building advertising and publicity using a simple message. In general, the marketing program must be adjusted to the changing distribution of buyer readiness. ; Attitude People in market can be enthusiastic, positive, indifferent, negative or hostile about a product. In the situation such as political campaign, attitudes can be effective segmentation variables.