SDR Consulting identifies certain practices that are often associated with successful segmentation programs. Call it regional marketing, target marketing, micro marketing, niche marketing, one-on-one marketing, or plain old market segmentation. For most business firms, locating and specifically targeting unique market segments is both a reality and a necessity in today's competitive market place. In North America, the assumptions of the mass market no longer hold true for most businesses and product categories.
Initially it was produced only in black. The business historian, Richard S.
Tedlowidentifies four stages in the evolution of market segmentation: The economy was characterised by small regional suppliers who sold goods on a local or regional basis Unification or mass marketing s—s: As transportation systems improved, the economy became unified.
Standardised, branded goods were distributed at a national level. Manufacturers tended to insist on strict standardisation in order to achieve scale economies with a view to penetrating markets in the early stages of a product's lifecycle.
As market size increased, manufacturers were able to produce different models pitched at different quality points to meet the needs of various demographic and psychographic market segments. This is the era of market differentiation based on demographic, socio-economic and lifestyle factors.
Technological advancements, especially in the area of digital communications, allow marketers to communicate with individual consumers or very small groups. This is sometimes known as one-to-one marketing.
By the s, Ford was producing Deluxe models in a range of colours such as this Ford Deluxe Coupe The practice of market segmentation emerged well before marketers thought about it at a theoretical level. Retailers, operating outside the major metropolitan cities, could not afford to serve one type of clientele exclusively, yet retailers needed to find ways to separate the wealthier clientele from the "riff raff".
One simple technique was to have a window opening out onto the street from which customers could be served. This allowed the sale of goods to the common people, without encouraging them to come inside.
Another solution, that came into vogue from the late sixteenth century, was to invite favored customers into a back-room of the store, where goods were permanently on display. Yet another technique that emerged around the same time was to hold a showcase of goods in the shopkeeper's private home for the benefit of wealthier clients.
Samuel Pepys, for example, writing indescribes being invited to the home of a retailer to view a wooden jack. A study of the German book trade found examples of both product differentiation and market segmentation in the s. Contemporary market segmentation emerged in the first decades of the twentieth century as marketers responded to two pressing issues.
Demographic and purchasing data were available for groups but rarely for individuals and secondly, advertising and distribution channels were available for groups, but rarely for single consumers.
Between andGeorge B Waldron, working at Mahin's Advertising Agency in the United States used tax registers, city directories and census data to show advertisers the proportion of educated vs illiterate consumers and the earning capacity of different occupations etc.
Thus, segmentation was essentially a brand-driven process. Smith is generally credited with being the first to introduce the concept of market segmentation into the marketing literature in with the publication of his article, "Product Differentiation and Market Segmentation as Alternative Marketing Strategies.Market segmentation is the activity of dividing a broad consumer or business market, normally consisting of existing and potential customers, When a marketer enters more than one market, the segments are often labeled the primary target market, secondary target market.
Sementation and Target Market Paper Segmentation and Target Market Paper Walmart Corporation Upon opening a business, a company must decide where to place the business and how to market the company.
This is not an easy task if several businesses of the same industry are located in . Market segmentation splits up a market into different types (segments) to enable a business to better target its products to the relevant customers. By marketing products that appeal to customers at different stages of their life ("life-cycle"), a business can retain customers who might otherwise.
Segmentation & Target Market Paper - Mkt/ Words | 5 Pages. Segmentation and Target Market MKT/ August 26, Meraj Khan Segmentation and Target Market Target Market, Segmentation and Positioning of McDonald’s McDonald’s is a fast food giant and is one of the best known burger chains in .
Segmentation, targeting, and positioning together comprise a three stage process. We first (1) In the auto market, for example, some consumers demand speed and performance, while others are much more concerned about roominess and safety.
we decide to target one or more segments.
Our choice should generally depend on several factors. Call it regional marketing, target marketing, micro marketing, niche marketing, one-on-one marketing, or plain old market segmentation. For most business firms, locating and specifically targeting unique market segments is both a reality and a necessity in today's competitive market place.