Essays on Segmentation Can Be A Very Powerful Tool For Aiming Marketing To Special Groups Assignment

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The paper "Segmentation Can Be A Very Powerful Tool For Aiming Marketing To Special Groups" is a perfect example of a Marketing Assignment. Basically, measuring consumer preferences has for many years remained an area of interest not only to practicing researchers but also scholars. Measuring accurately the preferences enables the marketer to deeply understand the dislikes, likes, desires, and wishes of the customers; therefore, it facilitates the effective implementation of the marketer’ s tool. Market segmentation is a common activity after measuring preferences that allow for the implementation of the more focused marketing mix.

Studies on market segmentation have been conducted since the mid-1950s by marketing researchers with the objective of collecting descriptive information regarding the purchase volume, beliefs as well as attitudes regarding the category, benefits sought, and so forth. During the analysis, the researcher usually preferred to observe the gathered information through a segmentation basis. Marketing has become very important for business success in the world, which nowadays is commonly referred to as a global village. It has become very challenging for the competitors to survive for long in the market since competition has become very intense.

Therefore, change or die has become the marketing’ s core faith. It is for this reason why developing the right marketing strategy in the fullness of time is needed. Having the right marketing strategy can enable a firm to realise its marketing objectives. The objective of this piece is to demonstrate that although segmentation has become a very powerful marketing tool, it has some limitations and there is something that lies beyond it. This paper seeks to challenge the modern philosophy regarding segmentation and seeks to offer alternatives. Discussion As pointed out by Sun (2009), the modern-day companies have come to realize that it is impossible to appeal to all the market’ s customers.

This is attributed to the fact that all the customers are unique in their own way, and they have different goals and interests, their backgrounds are different, and also they live in different places. For this reason, buyers are different in their buying practices as well as needs. In addition, there is a broad variance amongst the companies in their capacities to serve different market segments effectively.

Instead of trying to serve the whole market, all companies have to find the market segments that they can serve more profitably and effectively. In the last century, Sun (2009) posits that companies that were producing consumer products focused on mass marketing a similar product in almost a similar way to every buyer since they believed that mass marketing generates a major potential market. Yet, fierce competition and consumers diversity has made it very challenging to practice mass marketing successfully. As a result, scores of companies are now shifting to segment marketing. Segmentation Approaches Geographic segmentation involves dividing a market into geographical region units, like streets, counters, states, and countries.

This enables the organization to pay attention to the differences in preferences as well as needs in the regions. Geographic segmentation is important because it offers valuable differences when regional needs or preferences exist. Still, marketers should use different segmentation bases to target a specific market more effectively. Demographic segmentation involves dividing the market into different groups based on race, religion, sex, age, and so forth.

This approach is commonly utilized in the identification of consumer groups mainly due to the fact that usage rates, preferences, and desires are associated closely with a demographic variable. Because of the generation gap, it is very challenging to understand this variable; therefore, many marketers use the generation gap to segment markets since all the generations have largely been influenced by various factors while growing up, like policies, events, sports, and music (Sun, 2009). Another approach is psychographic segmentation, whereby the market is divided into segments based on values, personality or lifestyle.

Individuals in a similar demographic group are inclined to exhibit different psychographic features. In behavioral segmentation, the customers are grouped based on their attitude toward, response to, knowledge of the product. Scores of marketers deem that behavioral variables such as loyalty status, benefits, occasions, and usage rate and status are the best foundation for developing market segments. International market segmentation has turned out to be a crucial issue in the development, positioning, as well as selling of products in the international market. According to Steenkamp and Hofstede (2002), international market segmentation enables the firm to target potential customers globally and get a suitable positioning at the global level.

The main challenge is attributed to the company’ s inability to manage the heterogeneity structure effectively in consumer wants and needs at the international level and also to target consumers’ segments in different countries. Some of the global companies that are using international market segmentation include McDonald’ s, Coca-Cola, Toyota, British Airways, and many others.

References

Amine, L. S., & Smith, J. A. (2009). Challenges to Modern Consumer Segmentation in a Changing World: The Need for a Second Step. Multinational Business Review , 17 (3), 71-99.

Bose, T. K. (2012). Market Segmentation and Customer Focus Strategies and Their Contribution towards Effective Value Chain Management. International Journal of Marketing Studies , 4 (3), 113-121.

Fuller, D., Hanlan, J., & Wilde, S. J. (2005). Market segmentation approaches: do they benefit destination marketers? Occasional Paper, Centre for Enterprise Development and Research, Coffs Harbour, NSW.

Goyat, S. (2011). The basis of market segmentation: a critical review of literature. European Journal of Business and Management , 3 (9), 45-54.

Hunt, S. D., & Arnett, D. B. (2004). Market Segmentation Strategy, Competitive Advantage, and Public Policy: Grounding Segmentation Strategy in Resource-Advantage Theory. Australasian Marketing Journal , 12 (1), 7-25.

Steenkamp, J.-B. E., & Hofstede, F. T. (2002). exception is the review by Walters (1997), which focuses especially on the process and international business aspects of international segmentation. We expand upon this work by providing an in-depth treatment of the key conceptual and methodological issue. Intern. J. of Research in Marketing , 19, 185–213.

Stienstra, J. (2010). The Myth of Segmentation or How to Move Beyond. Methodological Paper, ESOMAR, Odyssey, Athens.

Sun, S. (2009). An Analysis on the Conditions and Methods of Market Segmentation. International Journal of Business and Management , 4 (2), 63-70.

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