Essay on Segmentation/Target Market Strategy

10. Conducting a Market Opportunity Analysis (MOA) is the first step in developing a marketing strategy.

According to Horner and Swarbrooke (2005: 39), Segmentation may be defined as the process of dividing a whole market into subgroups or segments for marketing management purposes. Market segmentation is the division of the overall market for a service into various categories with common characteristics. In response to different segments, organisations facilitate the available resources to achieve greater efficiency, in order to satisfy specific needs of customers.

What Is Market Segmentation? Market segmentation is a way of dividing the market into groups of consumers/customers which share similar features

The segmentation has been done on the basis of buying behavior of the customers. Knowledge of segment buying behavior can help redirect marketing resources for profit gain.

Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs and applications

Identification of the target market of A Little Taste of Texas remains a crucial element in the success of the business. Hence, segmentation becomes an initial component of targeting the customers; moreover, this form of marketing revolves around subdividing the audience into customer sectors rooted in their common characteristics (Board, Editorial, 2014). Moreover, according to Suttle (n.d.) marketing segmentation is an application preceding the targeting, thus, assuring a more selective audience to which A Little Taste of Texas will market their products, and enable the business to experience a greater success factor. This application process will correlate business A Little Taste of Texas products and customers, hence, ensuring an increased

For Subway Sandwiches, the global leader in franchised subway sandwich shops, the segmentation criterion that affects target market selection varies significantly within each community, city and metropolitan area chosen for expansion. At their most fundamental level, segmentation strategies at Subway are based on a broad base of assumptions with regard to socio-economic and demographic factors including age, income, mix of genders in a given region, ethnic composition of a community, vehicle ownership versus mass transit use, and media habit including social media use. All of these factors are included in the foundational elements of the Subway Sandwich market planning, marketing strategy and store planning. Additional factors that segmentation strategies are often based on are discussed in this analysis.

International market segmentation is the dividing of market into segments, this allow marketers to effectively determine whether business can thrive in a particular area. Segmentation is based on four factor namely geographical, psychographic, demographic and lastly behavioral segmentation. Geographical segmentation refers to grouping markets geographically such as nations, states or cities. Psychographic segmentation is the dividing of buyers into groups based on lifestyle or social class/status. Demographic segmentation uses factors like age, gender, occupation and etc to separate markets into groups. Last but not least, behavioral segmentation, this kind of segmentation divides buyer into groups by their knowledge about particular

As every customer has unique needs and expectations towards certain products, the ultimate goal of market segmentation is to organize customers into groups which allows targeting of customers with similar needs of and response to the products. The key is to minimize differentiation within each segment

Market segmentation as a term came up to describe the concept that all customers are not alike. Because in hospitality industry marketing money and resources are limited, it has to concentrate on specific groups of people, or target market, to avoid waste in time, money and quality. As a result, it’s ensuring the highest returns. [1 pp19] The reasons why segmentation is so important for hospitality industry are – more successful use of marketing money, clearer perceptive of the needs and wants of special customer groups, more effective developing of service, greater correctness in selecting promotional vehicles and techniques. [1 pp173]

Market segmentation is an approach used by a company to select their target market and provide data for a marketing plan. “Market segmentation consist of a two-step process; naming broad product markets and segmenting these broad products-markets in order to select target markets and develop suitable marketing mixes” (Perreault, Cannon, & McCarthy, 2014, p.97). There are 4 categories pertaining to market segmentation; behavioral, geographic, demographic, and behavioral.

The Right Target Market One of the most important marketing functions for a firm is finding

Market segmentation was to dividing a market into distinct groups of buyers with different needs, charactistics or behaviour who might require separate products or marketing mixes, the company will first

‘Market segmentation represents an effort to identify and catergorise groups of customers and countries according to common characteristics’ (Keegan and Green 2016, p.228). For any business, it is crucial that they segment their market accordingly or they will risk forgoing sales opportunities. Fahy and Jobber (2015) identify the objective of market segmentation as distinguishing groups of customers with similar requirements so

In order to market the product into the market successfully, marketers need to have some marketing strategy to enter the desired market and make profit. Market segmentation is the process of dividing a market into subsets of consumers with common needs or characteristics (Schiffman et al., 2011). Understanding the market size and segmentation is valuable, but the keys to effective targeting is to know just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends ( Berry, 1999).