The paper “ The Four Common Bases for Segmenting Markets, Branding, and Positioning of the Eco-Shack” is a breathtaking example of a case study on marketing. The purpose of this report is to provide a framework that will exemplify the bases for segmenting markets, identify and describe a consumer segment in New Zealand in relation to the major case study “ Marketing the Eco-Shack” . It explores the meaning of market segmentation in detail, the types and the most appropriate to use when it comes to identifying the right customer segment to Eco-Shack. It describes the best consumer segment that would be most interested in the Urban Eco-Shack and goes on to describe the business segment in New Zealand that would be interested in the Standard Eco-Shack.
It also goes on to discuss how the branding and positioning of the Eco-Shack product will be done in order to optimally target the chosen consumer and business segments. Marketers have come to the realization that target audiences which are also called consumer segments are different for different products. This is because these consumer segments differ in terms of needs, attitudes, demographics, locations and even social affiliations.
Therefore, it is important for marketers to mark the different levels of consumer segments as well as the business segments. According to Pickton and Broderick (2005, p. 373), the process of segmentation of customers will allow the marketers to deliver a product that will fully meet the needs and wants of the target audience. By adhering to the segmentation process, Doug and Paul will be able to effectively identify the most appropriate consumer and business segment for their Eco-Shack Project.
The aim of this report is to provide insight into the most appropriate segmentation of the Eco-Shack project and the concepts surrounding the entire segmentation process. Furthermore, after grasping full knowledge of the concepts, it should then be possible to determine the proper consumer segment for the Urban Eco-Shack and the most appropriate business segment that would be interested in the standard Eco-Shack. 2.0 The Four Common Bases for Segmenting MarketsMarket segmentation is at the heart of any marketing business in today’ s business world. It is a common strategy that companies use to divide the market into categories of consumers or segments by looking at their needs, wants and other factors hence grouping them accordingly.
The core purpose of segmentation is to gain a competitive advantage within each segment by concentrating the force and energy of a product in one targeted area. Pickton and Broderick (2005), define market segmentation as the process of dividing a market into smaller categories according to various factors such as their needs, wants, social characteristics or their particular behaviors. Notably, those with similar needs are placed in the same segment. The four common bases for market segmentation include demographic, geographic, behavioral and psychographic elements. 2.1 Demographic SegmentationThis involves dividing the customers into groups based on demographic factors like age, gender, the size of the family, the occupation, income, and religion of the population.
Other factors that are at play include race, social class, education and nationality (Armstrong and Kotler 2005, p. 187). This type of segmentation is used where variables are easily identifiable. A good example here is income. While some marketers will be interested in targeting high-income consumers, there are those that will particularly target those with considerably low income (Goyat 2011, p.