Segmentation Concept Essays -- Marketing

Efficient marketing strategy is rarely aimed at a large group of customers like all women, all schoolteachers or all beer drinkers, as any of the similar large groups are rather heterogeneous and may vary by age, income, needs, habits and lifestyle (McIntosh, Matthews, Mullineux, & Medland, 2010). As it is also impossible to reach each customer requirement or expectations, some distinct groups of consumers who will respond to a certain marketing mix in the same or similar way – segments – are to be identified. Segmentation is a process and result of differentiation of the consumers’ population to certain groups by number of geographic, demographic, age, economic, social and other characteristics in respect of a particular product (Sarvary, & Elberse, 2005). Global marketing introduces a better segmentation practice than just the borders between the countries. By effective application, segmentation provides global marketers with the opportunity to benefit from global standardization (like, economies of scale and positioning consistency) and at the same time meet the expectations and demand of the target group. This approach allows assessing the markets on a global or regional scale, overcoming limitations of the political boundaries that are usually used to define the market. After identifying the market segments it is necessary to assess their attractiveness by considering segment capacity, accessibility, prospective, profitability, competitiveness, compliance to company’s corporate strategy, objectives and culture, etc. Targeting is another essential tool of effective marketing strategy as it is a choice of the segment which best fits the parameters of potential customer of the product and further orientation at this segment b... ...362/146934709X467794 Tamames, R. (2000). World Economic and Environmental Order. United Nations, UNESCO, Eolss forerunner volume. Retrieved on March 27 from http://www.eumed.net/cursecon/textos/Tamames-Env_Order.pdf Walker, C. (2010). GenWorld The New Generation of Global Youth. Retrieved from Energy BBDO on March 27. http://www.energybbdo.com/uploads/GenWorld%20Overview.pdf Westjohn, S., Singh, N., & Magnusson, P. (2012). Responsiveness to Global and Local Consumer Culture Positioning: A Personality and Collective Identity Perspective. Journal Of International Marketing, 20(1), 58-73. Retrieved on March 27. doi:10.1509/jim.10.0154 http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=72034120&site=ehost-live Yankelovich, D., & Meer, D. (2006). Rediscovering Market Segmentation. Harvard Business Review, 84(2), 122-131. SMC Learning Resources.