Solomon (2006) sates that.. "the use of market segmentation strategies means targeting a brand only to specific groups of consumers rather than to everybody- even if that means that other consumers will not be interested or may choose to avoid that brand". For example, if Audi (a very popular car manufacture brand) designs a new jeep and wants to bring it onto the market they will have to deiced which market group they would want to aim their product on. By doing this Audi will have to segment their consumers into groups e.g. young professionals, families, where they live etc. Segmentation is just a process market researchers go through to divide particular groups in to sections which will be similar in their characteristics or behaviour. There are different segmentation veriables that will make it easier for any type of organisation to divide their markets into groups, The main four are Demographic, Geographic, Phschographic and Life Style.
Demographic Segmentation
The word demographic originates from the word 'demography which means 'study of population'. Population can be split up into many variables such as age, gender, income and family lifecycle. As people get older their needs and wants change, many organisations have invented many products aimed at specific age groups e.g. toys for children at all ages, clothes for teenagers etc. Gender segmentation is used very much so for when it comes to cosmetics, clothes and even magazines here are a few examples.
Geographical segmentation splits the markets into different regions. Marketers use this segmentation because consumers in different areas can show different charateristics and behaviours in particular areas e.g. in certain parts of London like West London there would be particular products being sold where you would not be able to buy in less developed parts such as certain areas of East London. An area can be divided by the town, region or even country. If there is a business working on a global scale it may divide the areas globally such as Europe, Asia, Africa, North and South America.
Phschographic Segmentation
Demographic segementation is very useful to marketers when it comes to develop a more accurate profiles of their target segments. Phschographics segmentation can be split up into different characteristics such as lifestyle, social class and personality.
Lifestyle Segmentation
The Oxford English dictionary defines a lifestyle "as a way of life" and lifestyle segmentation aims to examine the way people live. Soloman (2006) also defines lifestyle to be.... "a set shared values or tastes exhibited by a group especially as these are reflected on con sumption patterns."
The every day activities we do, our beliefs on certain subjects, our opinions and our interests makes us who we are. Marketers would refer these as AIO's which stands for Activities, Interest and Opinions. Our AIO shows our everyday behaviour from where we go shopping to what we decide to buy. Every marketer when it comes to developing and aiming their products or services look at the lifestyle of the particular group and then develop a lifestyle profile on their target market. If a marketer was to do reasearch on the lifestyle a particular group leads they could then sell their product or services to them on the basis that this would improve on their lifestyle.
These two pictures demostrates the different lifestyles people can lead. The first picture shows a couple who look like they have a very high paid job in the city, expensive car, only purchase organic food and live in an amazing house/flat marketers would call this group as the Yuppies. The second picture shows an elderly couple who can also be put into the target group called the Third agers. These people are over 50, retired, may have a high disposable income and as they are retired they would have time on their hands which can make them very adventurous and experimental.
Here is a Youtube video that explains in more detail what Market Segmentation is:
After the segmentation process comes Targeting, this is used when a organisation decides how it is going to target particular groups. Wright (2000) states that targeting is... "When the possible segmentation have been identified and the characteristics of each group having been clearly researched and established, the organization chooses which segments to target and which groups to ignore. The target group is organized in gender, age, lifestyle or behavior".
Once an organisation has selected its target market the next stage would be Positioning, this i when the organisation decides on how they will there product or service with their chosen target audience. Positioning refers to ‘how organisations want their consumers to see their product’. For example, years ago the the UK car Skoda brand had a negative brand associations however Volkswagen took over the brand and has changed Skoda into a award winning cars, this positive reputation has changed the perception of consumers that would never consider purchasing a Skoda car. perception of the brand.
I personally think that the message Skoda is trying to give to their consumers or potential consumers through this advert is that they are a much better brand now and are capable of more amazing creations.
No comments:
Post a Comment