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Markeg Segmentation Thread

Markeg Segmentation Thread - Key Concept Explanation...

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Key Concept – Explanation: According to Kyle et al. (2002), market segmentation refers to a process in which researchers or managers utilize to identify groups, participants or consumers with similar needs or characteristics. Market segmentation is one of the most crucial long-term strategic marketing decisions a destination or organization makes. It is therefore of utmost importance to explore the market structure as thoroughly as possible to derive the most promising market segments with regard to the attractiveness of the segment and the matching potential of the segment’s needs and the destination’s or organization’s strengths (Dolni, 2004). Comparison: According to the text, market segmentation is one of the four stages in product development strategies. The dated research described market segmentation as a strategy focused on serving niche markets with specific needs (Meredith & Shafer, 2007). However, this is a very broad understanding of the concept and needs further development to be fully comprehend. Segmenting is the division of the consumer base, or potential consumer base into categories where there are similar characteristics. There are a number of ways a market can be segmented. Traditional methods of segmentation may include demographics dividing the market by characteristics such as age, gender or ethnic background Other psychical attributes may be used, such as geographical location or even characteristics such as weight, hair color or even those with poor eyesight. The use of socioeconomics may also be used as a segmentation strategy, looking at occupation, income and education. More recent development also includes the use of consumer life cycle stages, looking at factors such as marital status and position of children if any. By defining the segments in the market the business unit can determine which segments have the higher potential for the company in terms of profit creation (Marwan, 2008). Article Summary:
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The purpose for segmenting a market is to allow your marketing/sales program to focus on the subset of prospects that are most likely to purchase you are offering. When market segmentation is done properly, it may help to insure the highest return for your marketing/sales expenditures. Furthermore,
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Markeg Segmentation Thread - Key Concept Explanation...

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