Simple though it may be, it is of vital use to forming any marketing plan.
Market Segmentation by Jerry W. Market segmentation is a much broader concept, however, and it pervades the practice of business throughout the world. What is market segmentation?
That is, the members of a market segment share something in common. The purpose of segmentation is the concentration of marketing energy and force on the subdivision or the market segment to gain a competitive advantage within the segment.
Concentration of marketing energy or force is the essence of all marketing strategy, and market segmentation is the conceptual tool to help achieve this focus. Our focus is on consumer markets rather than business markets, but most of the following concepts also apply to B2B. Geographic Segmentation This is perhaps the most common form of market segmentation, wherein companies segment the market by attacking a restricted geographic area.
For example, corporations may choose to market their brands in certain countries, but not in others. A brand could be sold only in one market, one state, or one region of the United States. Many restaurant chains focus on a limited geographic area to achieve concentration of force. Regional differences in consumer preferences exist, and this often provides a basis for geographic specialization.
For example, a company might choose to market its red-eye gravy only in the southeastern U. Likewise, a picante sauce might concentrate its distribution and advertising in the Southwest. A chainsaw company might only market its products in areas with forests.
Geographic segmentation can take many forms urban versus rural, north versus south, seacoasts versus interior, warm areas versus cold, high-humidity areas versus dry areas, high elevation versus low-elevation areas, and so on.
These examples also reveal that geographic segmentation is sometimes a surrogate for or a means to other types of segmentation. Distribution Segmentation Different markets can be reached through different channels of distribution.
This type of distributional segmentation is common, especially among small companies that grant each channel a unique brand to gain distribution within that channel. Other examples of distributional segmentation would be an upscale line of clothing sold only in expensive department stores, or a luxury hair shampoo sold only through upscale beauty salons.
Media Segmentation While not common, media segmentation is sometimes a possibility. It is based on the fact that different media tend to reach different audiences.
If a brand pours all of its budget into one media, it can possibly dominate the segment of the market that listens to that radio station or reads that magazine. Media segmentation is most often practiced by companies that have some control over the media and can somehow discourage competitors from using that media.
Price Segmentation Price segmentation is common and widely practiced. Variation in household incomes creates an opportunity for segmenting some markets along a price dimension. If personal incomes range from low to high, the reasoning goes, then a company should offer some cheap products, some medium-priced ones, and some expensive ones.
This type of price segmentation is well illustrated by the range of automotive brands marketed by General Motors, historically. Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac varied in price and status along a clearly defined spectrum to appeal to successively higher income groups.
Demographic Segmentation Gender, age, income, housing type, and education level are common demographic variables. Some brands are targeted only to women, others only to men. Music streaming services tend to be targeted to the young, while hearing aids are targeted to the elderly.
Education levels often define market segments. For instance, private elementary schools might define their target market as highly educated households containing women of childbearing age.Zaius market segmentation helps marketers segment customers by behavior and. Marketing is the study and management of exchange relationships.
Marketing is used to create, keep and satisfy the caninariojana.com the customer as the focus of its activities, it can be concluded that Marketing is one of the premier components of Business Management - the other being innovation.
Jun 30, · To segment a market, you divide your potential customers into different groups. Millennials, Generation X and baby boomers, for instance, or fans of thrillers, paranormal romance and horror. Marketing automation software automates marketing actions or tasks, streamlines marketing workflows, and measures the outcomes of marketing campaigns.
These tools provide a central marketing database for all marketing information and interactions, helping marketers create segmented, personalized and. Strategic Management > SWOT Analysis.
SWOT Analysis. SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. It is applicable to either the corporate level or the business unit level and frequently appears in marketing plans.
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