Premium Essay

Rediscovering Market Segmentation

In: Business and Management

Submitted By nxl710626
Words 484
Pages 2
Reading Assignment
《Rediscovering Market Segmentation》By Daniel Yankelovich & David Meer

MKTG 6215
From:Han Xia
Date:10/21/2015

Idea
The idea was to broaden the use of segmentation so that it could inform not just advertising but also product innovation, pricing, choice of distribution channels, and the like.

Content
1. Describe the elements of a smart segmentation strategy

2. Explain how segmentations meant to strengthen brand identity and make an emotional connection with consumers differ from those capable of telling a company which markets it should enter and what goods to make

3. Introduce a tool we call the “gravity of decision spectrum,’’ which focuses on the form of consumer behavior.

The Gravity of Decision Spectrum

According to the article, the meaningful segmentations depend on finding patterns in customers’ actual buying behavior, so you need to gather the relevant data based on the question your exercise is ultimately aimed at answering. Like 1. Which benefits and features matter to your customer? 2. Which customers are willing to pay higher prices or demand lower ones? 3. The relative advantages and disadvantages customers identify in your existing offerings. 4. Data on social, economic and technological trends. Although these aspects are simple, but from a Tissue to the Internet, the market segmentation of all products are start from here.

Segmentations can be started from the following several aspects:

1. what are we trying to do? The market segmentation and the company's strategy has to be interrelated. For example, cosmetics’ market segmentation is not necessary to divide according to sex, but the age or the purpose of the make-up, which is more reasonable.

2. Which customers drive profits? Effective market segmentation must be able to identify customer groups that matter to the company's performance.

3....

Similar Documents

Premium Essay

Market Segmentation

...successful business plan. Without it, the organizations are challenged to achieve market penetration, high growth rate or brand recognition. What we find however, is that in times of economic downturn or slowdown, organizations commonly will sacrifice this line item first with trimming or cut-backs. Many professionals have historically had a hard time seeing the alignment between marketing and continued profitability- viewing this discipline and its related practices as ‘discretionary’. The article ‘rediscovering market segmentation’ focuses on understanding and assessing various aspects of consumer behavior as one of the key factors to effective marketing, sales and customer satisfaction. Once you know your customer segmentation by personality type, you can create personality type. This knowledge of individual preferences related to a respondent’s personality can be leveraged to create more effective marketing campaigns and increase sales. Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers, who have common needs, and then designing and implementing strategies to target their needs and desires using media channels and other touch-points that best allow to reach them. Market segmentation involves dividing up the potential market for a product into groups of people who have similar needs, and then addressing these needs in a focused way. Market segments allow companies to create product differentiation strategies......

Words: 1687 - Pages: 7

Premium Essay

Finance of Schoget

...Segmentation Markets are heterogeneous. Customers differ in their values needs, wants, constraints, beliefs and incentives to act. Products compete to satisfy the needs and wants of customers. By segmenting their markets, firms can better understand their customers and target their marketing efforts efficiently and effectively (Lilien, 2007). As Lilien suggests the raw data has been segmented below. Size / Cluster | Overall | Cluster 1 | Cluster 2 | Cluster 3 | Number of observations | 317 | 182 | 70 | 65 | Proportion | 1 | 0.574 | 0.221 | 0.205 | Fig. 1 After exploring with different amount of clusters, it was clear that there are 3 well defined clusters. As Lilien (2007) approves for a segmentation study to be useful, it should result in a manageable number of target segments (often between three and eight), each of a substantial size. Therefore this representation of the market is appropriate and the analysis can continue to describe each segment. Below are the results from the data collected. Segmentation variable / Cluster | Overall | Cluster 1 | Cluster 2 | Cluster 3 | Rich full-bodied | 4.77 | 4.91 | 2.3 | 7.03 | Light beer | 3.72 | 3.35 | 3.67 | 4.82 | No aftertaste | 4.56 | 4.37 | 3.46 | 6.29 | Refreshing | 5.02 | 5.42 | 2 | 7.17 | Goes down easily | 5.17 | 5.35 | 2.91 | 7.09 | Gives a "buzz" | 3.39 | 3.16 | 2.63 | 4.88 | Good taste | 3 | 2.37 | 0.443 | 7.51 | Low price | 3.91 | 3.8 | 3.13 | 5.06 | Good value | 4.65 | 4.43 | 3.26 |......

Words: 866 - Pages: 4

Premium Essay

Business

...Segmentation And Target Market Paper Free Essays 1 - 30 www.papercamp.com/group/segmentation-and-target-market-paper Cached Free Essays on Segmentation And Target Market Paper for students. Use our papers to help you with yours 1 - 30. Segmentation and Target Marketing - Essays - Menaiedw www.termpaperwarehouse.com/essay-on/Segmentation-And... Cached Read this essay on Segmentation and Target Marketing . Come browse our large digital warehouse of free sample essays. Get the knowledge you need in order to pass your ... Segmentation and Target Market Paper - Marketing homework help www.homeworkmarket.com/content/segmentation-and-target... Cached Write a white paper on a company of your choice and discuss the market segmentation within that industry along with the target market for the company and the ... Segmentation and Target Market Essays - Free Essays, Term ... manyessays.com/essay/segmentation-and-target-market Cached Title: Pages / Words: Save: how is market segmentation used in target marketing? Broadly, markets can be divided according to a number of general criteria, such as by ... Segmentation and Target Market - Term Papers - Mikeymyles www.studymode.com/essays/Segmentation-And-Target-Market... Cached Segmentation and Target Market According to Kotler, "a market segment consists of a large identifiable group within a market, with similar wants, purchasing power ... Target Market Segmentation Research Paper -......

Words: 534 - Pages: 3

Free Essay

Are You Sure You Have Strategy

...strategy - consisting of these domains of choice: arenas, vehicles, differentiators, staging, and economic logic. Consideration should be placed on all five elements, and not just a few components of a strategy. These elements call not only for choice, but also preparation and investment. It is important that they align and support one another. Finally, only after the design of all five elements can the strategist plan other supporting activities that are needed to reinforce the strategy such as functional policies, organizational arrangements, and operating programs. The arenas element is the most fundamental choice a strategist makes. It answers the questions, where will the company be active? It includes what product categories, market segments, geographic area, and core technologies to include. The challenge in this step is to be as specific as possible – the strategist needs to include not only where the business will be active, but also how much emphasis will be placed on each. Vehicles,...

Words: 733 - Pages: 3

Premium Essay

Entering New Markets, Methods and Expectations

...outside the domestic market. Such phenomenon, known as “delocalization of production”, can be defined as the social/ managerial/ organizational process through which firms not only deploy their sales on foreign markets, but they also draw supplies like raw materials, technology, facilities, equipment, financial resources and manpower. The aim of this paper is to provide an analysis on winning internationalization strategies, that will help a company to successfully penetrate a new market. Further on we will see a little case study on the shoes and accessories company Geox, performing an overview of its presence on international markets, providing a little historical background of the company and evaluating its competitiveness. Competition intensification on the global scale has lead an increasing number of companies, in the last decade, to seek new job opportunities on international markets. Internalization, today, is not only a way to increase the firm’s value, extends its competitive advantage and access to new opportunities. In our current economic environment it has become an useful and practically necessary way that may guarantee a firm’s outliving. Going international for a company means going through a tough and long process, that will change its assets completely and with no coming back. It involves quite a bit of transformations in several areas, like the financial layout, organizational and technical structure, position on the market and human resources......

Words: 3935 - Pages: 16

Premium Essay

Anything

...in Malaysia who require ICT solutions to improve and enhance their business operations. This will open the opportunity to the TM to attract the investors from the outside country. Because, when many people are participated in these business products it will enhance business processes, increase productivity and business revenues are available at a very special rate throughout the duration of SME BizFest 2012. Growing Broadband Market “Our business segments continue to record strong growth in revenue and business generation especially in our Retail and Global Lines of Business. We will remain focused on expanding our UniFi coverage and capitalise on the strong take-up we are still experiencing to date. The emphasis on customer service and product differentiation is clearly helping us strengthen our leadership and expand into new market segments. The KPIs that we have set for this financial period appear attainable based on our current achievement, although the external environment continues to pose a challenge due to the volatility in the global markets and increased competition in the broadband space.”( Dato’ Sri Zam) As we know TM is the first company who is...

Words: 808 - Pages: 4

Free Essay

Product Placement

...Product placement Product placement 2014 Carlijne Peeks & Marlot Stuiver Begeleider: Ron Hobers 7-2-2014 2014 Carlijne Peeks & Marlot Stuiver Begeleider: Ron Hobers 7-2-2014 Beste meneer Hobers, Aan de hand van 4 deelvragen proberen wij de vraag: Hoe worden jongeren beïnvloed door (sluik)reclame? te beantwoorden. 4 deelvragen: 1) Hoe komt een reclame tot stand? 2) Hoe werkt het brein als het gaat om reclame, neuromarketing? 3) Wat is product placement? En hoe werkt het? 4) Wat voor soorten reclame uitingen zijn er allemaal? Ook door een enquête aan leeftijdsgenoten proberen wij uit te zoeken, hoe de gemiddelde tiener beïnvloed wordt. Groetjes Marlot Stuiver en Carlijne Peeks Inhoudsopgave Voorwoord……………………………………………………………………………………..1 Inhoudsopgave……………………………………………………………………………….2 Inleiding P.P…………………………………………………………………………………….3 Geschiedenis reclame……………………………………………………………………..5 Krantenartikelen………………………………………………………………………………6 Deelvraag 1……………………………………………………………………………………..10 Deelvraag 2……………………………………………………………………………………..14 Anatomie van de verleiding…………………………………………………………….17 Deelvraag 3……………………………………………………………………………………..22 Krantenartikelen incl. Apple…………………………………………………………….28 Golden globes nominaties……………………………………………………………….32 Film verslag ‘the greatest movie ever sold’……………………………………..34 Deelvraag 4………………………………………………………………………………………40 Gouden......

Words: 14921 - Pages: 60

Premium Essay

Market Segment

...Chapter 09 Segmenting, Positioning, and Forecasting Markets Multiple Choice 1. The affluent Asian adult survey by Synovate __________ individuals according to their different attitudes, media exposures and habits, and product consumption patterns. a) categorizes b) ranks c) isolates d) distinguishes e) promote Ans: a Feedback: The individuals are categorized according to their different attitudes, media exposures and habits, and product consumption patterns. Page: 241 Learning Objective: 1 2. What can be concluded about the affluent Asian adults from the survey? a) Marketers should focus their marketing efforts on all groups b) Marketers may use different messages to sell the same products to same group c) Affluent adults in Asia are a homogenous group d) Marketers will not seek to reach out to them in the same way e) All of the above can be concluded from the survey Ans: d Feedback: Marketers will not treat them as one group, and will not seek to reach out to them in the same way. Page: 242 Learning Objective: 1 3. Which of the following statements about the affluent Asian adult is true? a) “Luxury Loyalists” tend to purchase more of the digital products such as laptops and MP3 players. b) “Executive Warriors” have the highest penetration for the Internet and usage of e-mail and instant messaging c) The “HUMmers,” hungry, urban, and mobile individuals, make up the largest group of affluent Asian adults d) The “Gimmes,” younger adults between...

Words: 21403 - Pages: 86

Free Essay

Fraser Coast Slogan Creation

...where nature comes alive… How many of you knew this was the brand slogan for the Fraser Coast before you commenced this subject?? Just a show of hands… So not a lot of you But more importantly does this draw you in? Does it capture you and make you want to visit the Fraser coast? Our question today… is it possible to have one brand slogan that is suitable for all of the different segments that Fraser coast tourism is targeting? NEXT SLIDE To really be able to answer this question we need to look at some important contributing factors. What is a slogan and why is it important to a destination brand? What is the current situation for Fraser Coast’s Tourism industry? What does the Fraser Coast have to offer? And Who are the market segments? NEXT SLIDE What is a brand slogan? “A Slogan is a short phrase that communicates descriptive or persuasive information about a brand” NEXT SLIDE Slogans are particularly important when it comes to differentiating a destination from its competitors. A destination slogan should be memorable and it should tie in with the overall positioning of the brand. Slogans can be an incredibly effective tool and when used correctly consumers will be able to identify a destination and its brand from the slogan. NEXT SLIDE This image is a really great way to illustrate the importance of a Slogan. Slogans are a shadow for the brand, they should be memorable, they should make the consumer want to take action, they should build......

Words: 1414 - Pages: 6

Premium Essay

Market Segmentation of Faber Castell

...1. How would you define market segmentation? ( 5 marks) A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another. Generally three criteria can be used to identify different market segment. Homogeneity 同质化, common needs within segment. Distinction区别, unique from other groups.Reaction活跃, similar response to market.For example, an athletic footwear company might have market segments for basketball players and long-distance runners. As distinct groups, basketball players and long-distance runners will respond to very different advertisements. 2. How do geographic segmentation and demographic segmentation differ? (10 marks) Geographic segmentation is based on climate, density, market size, world or states. Many companies use climate if their products or services rely on the weather, such as snow shovels, melting pavement salt, wave runners and boats. For example, USA is more interested in targeting geographic locations that are located near the park in a 100-mile radius. They believe some customers will fly in from out of state, so in addition, they will target large-density areas nearby. However, demographic segmentation is extremely important to all marketing departments since the data is easily......

Words: 644 - Pages: 3

Free Essay

Segmentation

...Data Analytics: A Marketing Segmentation Case Study T. Evgeniou, INSEAD J. Niessing, INSEAD The Iterative Process Cycle Data Preparation & Exploration Analysis Goal of Analysis Performance Assessment Segmentation Methodology – A(nother) Process 1 2 3 4 5 6 Identify Business Issues Clarify Scope and Dimensions Generate and Refine Hypotheses Decide on Data to use / Collect Needed Data Build the Segmentation Framework Link to Marketing & Business Strategy A Segmentation (micro-)Process •  Segmentation solution is created through a rigorous and iterative process Data Processing/ Factor Analysis Cluster analyses Review and refine Why Segmentation? •  SEGMENTATION is a critical enabler to achieve business objectives and realize benefits •  SEGMENTATION is critical to identify white spaces for new products/offerings •  SEGMENTATION helps organizations to optimize their retention and acquisition strategy •  SEGMENTATION is often used to optimize pricing across different products •  SEGMENTATION enables organizations to become more customercentric •  MARKET DYNAMICS make segmentation critical to business success. Questions You Might Hear… These are only some of the issues that clients may raise that clue you in to appropriateness of segmentation Growth & New Opportunities Market Structure Product Development Channel Deployment Resource Allocation Retention...

Words: 1273 - Pages: 6

Premium Essay

Transglobal

...2011 STUDENT CASE COMPETITION The Student Case Competition is sponsored annually by IMA® to provide an opportunity for students to interpret, analyze, evaluate, synthesize, and communicate a solution to a management accounting problem. TransGlobal Airlines By Shane Moriarity, Laura Hopkins, and Andrew Slessor “We are facing a major change in our firm’s operating environment,” the CEO of TransGlobal Airlines declared at the opening of a hastily called executive committee meeting. “We need to adopt a survival strategy, now! Noah built the ark when the weather was fine. He didn’t wait for the rain to come.” 44 44 S T R AT E G I C F I N A N C E I August 2010 T ransGlobal Airlines is the government-owned, national flag carrier of a small republic. While nominally a democracy, the country in which TransGlobal is located has been ruled by the same president for more than 40 years. During this time, tight controls were placed on all aspects of the economy. Increasingly, the country’s wealth was concentrated in the hands of a few powerful supporters of the president. The economy stagnated, and basic infrastructure fell into disrepair. Recent violent protests, however, have led the aging president to announce his retirement. He has scheduled an election to be held in three months’ time. At stake in the election will be the presidency as well as all the seats in the legislature. Several political parties have been organized and are fielding...

Words: 3572 - Pages: 15

Premium Essay

Market/571

...MARKET SEGMENTATION Write a white paper on a company of your choice and discuss the market segmentation within that industry along with the target market for the company and the selection process for that target market.  Required Elements: * No more than 2100 words * Include demographic, psychographic, geographic, and behavioral characteristics for the selected company. * A positioning statement for the company with careful consideration of their brand and strategy * Paper is consistent with APA guidelines. Introduction: The fundamental component of Market segmentation is a market-based strategy. A market segment is a purchase behaviors and different descriptive characteristics and specific group of customers with distinctive customer needs (Baker M.J, 1995) By categorizing markets into sub sectors, targeting marketing effort in such a way as to meet the other requirement and technical requirements of each of these, organizations may be able to secure big competitive position than if they attempted to satisfy the fundamental requirements of the market as a whole. In market segmentation there are four criteria that have to be satisfied in order for market segmentation to be effective. A market segment should be accessible, identifiable, substantial, and stable. In Identifiable, there should be indicators of observable that enable the segment to be defined and quantified (Baker M.J, 1995). Accessible, that is, it should be probable to target specifically......

Words: 1902 - Pages: 8

Premium Essay

Marketing

...beans and pearls. Blackball have own self packaging which every dessert box come with blackball’s logo (refer to appendix 1). Blackball provides free delivery services. For example, blackball in Singapore, they provide delivery services and send the dessert to the consumer place without extra changes. (Refer to appendix 2) 2.0 Market Segmentation Market Segmentation is the process of dividing a market into distinct groups of consumers who have different needs and wants. To classified the segmentation of consumer market can be based on different segmentation which is geographic segmentation, demographic segmentation, psychographic segmentation and behavioral segmentation. 2.1 Geographic Geographic segmentation is dividing the consumer market into different geographical units such as nation, states, regions, counties, cities or neighborhoods. Over the worldwide, there are 50 blackball outlets across to many other countries love dessert such as Singapore, Malaysia, Indonesia, China and the origin country of the blackball – Taiwan. For instance in Singapore, to upsurge in their business, blackball segment their consumer market by geographic segmentation whereby there have 9 outlets across in Singapore such as Tampines, Jurong areas, central areas...

Words: 663 - Pages: 3

Premium Essay

Marketing 3.0

...can steal it from me to play Angry Birds), I am greeted with two pop-ups serving irrelevant daily deals, which I instinctively close without reading. The only time I might actually pay attention is when a friend emails or pings me via Facebook on a cool offer (Rally Car Racing lessons? Okay, now we’re talking). Most marketing emails that somehow slip through my spam filter also go unopened and unread, as I search for the email I really want to see: that my fantasy football trade was accepted (Tony Romo really is a horrible fantasy QB). The mail, the inserts, the pop-ups, the emails — they have all become nuisances and background noise. So is marketing dead? I hope not, because I’m basically a marketing guy. But I think classic “segmentation” based marketing is broken. We are all individuals with unique needs. And as much as marketers try, it’s hard to put us into “catch all” segments or clusters. As a former airline marketing VP, I have been part of the problem: so feel free to blame me first. We used to celebrate a 0.25% response rate to inserts in our airline credit card mailings. Really? So 99.75% of the people didn’t care about our offer. A 1% click-through on a keyword ad gets celebrated, too. So why do marketers celebrate irrelevance? Because the math still pens out: you can make money in the short term on a 0.25% response rate or a 1% click through rate. But what’s the long term cost? More important, what’s the lost opportunity? For the past couple......

Words: 757 - Pages: 4