Market Segmentation Essay -- essays research papers fc

  Ã‚  Ã‚  Ã‚  Ã‚  To reach different markets or to promote your products to different locations or people one has to use a method called market segmentation. â€Å"Market segmentation describes the division of a market into homogenous groups which will respond differently to promotions, communications, advertising and other marketing mix variable† (Cumming). Market segmentation is extremely important for companies around the world. If a company doesn’t research the area in which they are going to market or they put a product that is either to expensive or to elaborate in an area that can’t afford that then they will fail as a company. In my paper I will discussion why market segmentation is used in around the world, the types of segmentation, some techniques used to make segmentation work the best.   Ã‚  Ã‚  Ã‚  Ã‚  Market segmentation is to divide the market into smaller segments. The reason for dividing the market is to make it easier to address the needs of smaller groups of customers, particularly if they have many characteristics in common (Breen). It is easier if you find things in common that are the same such age, gender, benefits, lifestyles, etc. We also use market segmentation to find niches or to identify under-served or un-served markets. â€Å"Using niche marketing, segmentation can allow a new company or new product to target less contested buyers and help a mature product seek new buyers† (Cumming). Niche marketing can also take a normally large, identifiable group within a market, break it into sub groups so marketing can become easier. Niching offers smaller companies an opportunity to compete by forcing their limited resources on serving niches that may be unimportant to or overlooked by larger competitors (Mariotti). In many markets today, niches ar e normal, as agency executive observed, â€Å"There will be no market for products that everybody likes a little, and only for products that somebody likes a lot (Mariotti). Market segmentation is also used to be efficient. â€Å"More efficient use of marketing resources by focusing on the best segments for your offering – product, price, promotion, and place (distribution). Segmentation can help you avoid sending the wrong message or sending your message to the wrong people† (Klein). The question is when do we use market segmentation. The answer is, anytime you suspect there are significa... ...ptually distinguishable and do they respond differently to different marketing mix elements and programs? The market segments have to be actionable: Can effective programs be designed for attracting and serving the segments. (Mariotte).   Ã‚  Ã‚  Ã‚  Ã‚  Market segmentation is one the most important parts of the marketing mix because of its ability to sell specific items to specific people effectively. Works Cited Breen, Bill, â€Å"Desire: Connecting With What Customers Want† Fast Company: Issue 67 Febuary 2003 page 86; Gruner + Jahr USA Publishing  © 2003 (www.fastcompany.com). Cumming, Betsy, â€Å"Cut Out For Success: Targeting Segments Can Help You Claim A Bigger Share of the Overall Market† Sales and Marketing: January 4, 1994; VNUeMedia Inc.  © 2003 (www.salesand marketing.com) Klein, E. Karen, â€Å"Advertising vs. Marketing† Business Week: October 9, 2003; McGrain – Hill Companies  © 2003 (www.businessweek.com). Mariotti, L John, â€Å"Maximize Your Marketing Dollars† Fortune Small Business: Monday, January 22, 2001; Time Inc  © 2003 (www.fortune.com). McElligott, Tuim, â€Å"Customer Specific: The Art and Science Behind Amdoc’s Market Segmentation† Telephony: October 16, 2003