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The Concept of Market Segmentation

In: Business and Management

Submitted By lorelibreros
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The concept of market segmentation. The conception of market segmentation is a marketing approach that consists of dividing a wide target market into subcategories of consumers, who share common needs, by planning and applying strategies to target their needs and wants to utilize media channels and other promotional elements that facilitate reaching the focused customers.

Additionally, market segments allow businesses to design different marketing approaches to target them. However, reaching a market by recommending different, desirable, and competing products, that is in the outlooks of the target consumers. In which, buyers behaviors in numerous markets diverge in their wants or needs, incomes, localities, purchasing attitude, and buying habits. Within market segmentation, corporations break up large, diverse markets into smaller sectors that can be influenced more effectively with products and services that are compatible their individual needs. Furthermore, a marketer has to point various segmentation variables, to obtain the safest technique to analyze the targeted market structure; where, these market segmentations are classified in four different variables that are geographic, demographic, psychographic, and behavioral (Kotler & Armstrong, 2010, p 191). An example is the Coca Cola Company; this company had expanded its business worldwide servicing over 200 countries and with a total of $35 billion in revenues annually (10-k: The Coca Cola Company). In fact, The Coca Cola designs the costumes strategy analysis by studying costumers based in segmentation, targeting, and positioning in the process. They portion the targeted markets into groups of potential customer with related needs who are likely to exhibit similar purchase behavior. For this reason, The Cola Company involves different marketing variables such as Geographic segmentation by...

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