Introduction
Marketers have determined that the target market of any particular product is not always alike and the target market of different products can differ in terms of the locations, needs, attitudes, affiliations and the demographics of the customers in that market. Most of the markets are made up of different segments, sub markets or the groups of different customers.The process of dividing the wide market into several segments of groups based on the factors such as geographic, demographic, behavioral and psychological factors is called as market segmentation.
When the marketers segment the market and then target a specific or a number of different segments, then it allows the marketers to deliver the products to exactly meet the needs and the wants of the customers within that target market (Kotler, 2009).
It is one of the most important behind the success of the product in any market that the values and needs of all the target customers should be established within each of the target market. This would enhance the capability of the company to promote their services, brands and the products more appropriately (Pickton, 2005). Market segmentation for the companies serves two main functions that are the improvement in the retention of the customers and the acquisition of the new customers. In this learning essay, we highly discuss the concept and process of market segmentation in the light of real examples and the theory behind it.
Discussion
Market Segmentation Essay Harvard Case Solution & Analysis
First we begin with the discussion of the concept of market segmentation:
Concept of Market Segmentation
Market segmentation is defined as one of the most important and one of the key elements of the modern marketing management. The process of dividing the wide market into several segments of groups based on the factors such as geographic, demographic, behavioral and psychological factors is called as market segmentation.
By developing the market segments, the marketers can determine which segment to target and as a result they will also have a much better understanding of the target market and thus they can make their marketing strategy more aligned and effective. The reason behind is that the marketer would be using an analytical process of putting the customers first and thus the marketer would get more satisfied customers by reaching out to them in a systematic manner and fulfilling all of their needs and wants. This gives the marketers a strong advantage over their competitors (Yi, 2017).
The market segments can also be categorized in different ways and one way is to categorize the market segment on the basis of the preferences of the target customers such as diffused preferences, homogeneous preferences and clustered preferences. Whenever segmenting a market, it is highly important to take consideration of the three areas of marketing which include mass marketing, product differentiated market and target marketing(Liu, 2012)................
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