That three stages are firstly determine which kinds

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That three stages are... Firstly,determine which kinds of customersexistSelect which ones we are best off trying to serveimplement our
segmentation by optimizing our products/services for that segmentand Communicating that we have made the choice to distinguishourselves that way./Segmentation involves finding out what kinds of consumers withdifferent needsexist.In the auto market, for example, someconsumers demand speed and performance, while others are muchmore concerned about roominess andsafety.In general,it holds truethat “You can’t be all things to all people,” and experience hasdemonstrated that firms that specialize in meeting the needs of onegroup of consumers over another tend to be more profitable.Benefitsof Segmentation Effective use of resources Gain a focusCreate value for a target market PositioningMarket segmentation ofDemographic segmentationDividing the market into groups based onvariables such as: Age Gender Family size or life cycle IncomeOccupation Education Religion Race GenerationNationalityPsychographicsegmentation Divides buyers into different groupsbasedon: Social class Lifestyle Personality Behavioral segmentationDividing the market into groups based on variables such as:OccasionsBenefits User statusUser status Usage rate Loyalty status Readinessstage Attitude toward productEvaluating market segments Segmentsize and growthSegment structural attractivenessCompany objectivesand resourcesOur choice should generally depend on several factors.Such as below questions:how well are existing segments served byothermanufacturers?how large is the segment, and how can weexpect it togrow?do we have strengths as a company thatwill helpus appeal particularly to one group of consumers?Segmentationis aform of critical evaluation rather than aprescribedprocessorsystem,and hence no two markets are defined and segmented in the sameway.However,there are a number of underpinning criteria that assist uswith segmentation:Is the segment viable? Can we make a profit fromit?Is the segment accessible?How easy is it for us to get into thesegment? Is the segment measurable? Can we obtain realistic data toconsider its potential? The are many ways that a segment can beconsidered. For example, the auto market could be segmented by:driver age, engine size, model type, cost, and soon.However,the more general bases include: by geography –such aswhere in the world was the productbought. by psychographics –suchas lifestyle orbeliefs. by socio-cultural factors –such as class. bydemographysuch as age, sex, and so on. A company will evaluateeach segment based upon potential business success. Opportunities
will depend upon factors such as: the potential growth of the segmentthe state of competitive rivalry within the segment how much profit thesegment will deliver how big the segment is how the segment fits withthe current direction of the company and its vision.Targetingisthesecond stage oftheSEGMENT“Target”POSITION(STP)process.

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