Market Segmentation
- Submitted by: MatthewBrown
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- Date Submitted: 11/15/2015 08:13 AM
- Pages: 7
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Market Segmentation
In order to sell a product or provide a service a company must meet a need or fill a void that currently exists within the market. Many companies that try and fail create false voids and attempt to fill holes and needs that are not really there. A successful organization will perform adequate market research and identify which parts of the market are interested in certain things. A company typically has two different choices to consider when determining whom to market to. “Mass marketing refers to treatment of the market as a homogenous group and offering the same marketing mix to all customers (2010 netmba.com)”.
When a company decides that they want to select a particular group or portion of the market this is called target marketing. “Target marketing requires the diversity of customers and does not try to please all of them with the same offering (2010, netmba.com)”. Throughout the course of target marketing a company will have to perform effective market research to determine how their product or service will meet the needs of the consumer and the best way to get it in the hands of the public.
Criteria
Market segments are selected through fairly specific criteria and measures. Market segments must have enough profit potential to sustain sales and growth within the market. Market segments must be identifiable and measurable; meaning the different attributes of segments must be measurable so they can be identified. Market segments must be accessible to the consumer. The segments must be reachable some form of communication and distribution channels. There must be a way to communicate with the consumer and then a way to get the product into the hands of the consumer. Market segments must be substantial. The segments should be sufficiently large enough to justify the resources required to target them. The markets must present enough value to the organization to justify the allocation and expenditure of resources including...
In order to sell a product or provide a service a company must meet a need or fill a void that currently exists within the market. Many companies that try and fail create false voids and attempt to fill holes and needs that are not really there. A successful organization will perform adequate market research and identify which parts of the market are interested in certain things. A company typically has two different choices to consider when determining whom to market to. “Mass marketing refers to treatment of the market as a homogenous group and offering the same marketing mix to all customers (2010 netmba.com)”.
When a company decides that they want to select a particular group or portion of the market this is called target marketing. “Target marketing requires the diversity of customers and does not try to please all of them with the same offering (2010, netmba.com)”. Throughout the course of target marketing a company will have to perform effective market research to determine how their product or service will meet the needs of the consumer and the best way to get it in the hands of the public.
Criteria
Market segments are selected through fairly specific criteria and measures. Market segments must have enough profit potential to sustain sales and growth within the market. Market segments must be identifiable and measurable; meaning the different attributes of segments must be measurable so they can be identified. Market segments must be accessible to the consumer. The segments must be reachable some form of communication and distribution channels. There must be a way to communicate with the consumer and then a way to get the product into the hands of the consumer. Market segments must be substantial. The segments should be sufficiently large enough to justify the resources required to target them. The markets must present enough value to the organization to justify the allocation and expenditure of resources including...