Market segmentation as a basic ingredient of the marketing strategy - Essay Example

Market Segmentation A strategy of marketing is known by the name of market segmentation. It basically entails dividing a wide audience into different sets based on consumers marked significantly by their peculiar needs, wants, and desires. The criteria are depended deeply on the aspects like age, gender, race and ethnicity. Thus, the marketing campaigns are devised in such a way as to make sure that the specific customer segments are ably met, whilst addressing their needs, wants and desires, which indeed are seen as common. This paper discusses how market segmentation is a basic ingredient of the marketing strategy for the sake of different products and services in an organization that caters to the needs of the customers and varied stakeholders. It pinpoints its attention towards areas which deserve understanding and comprehension for the sake of reaching a common consensus as far as the dynamics of marketing are related. It is a fact that every organization has its own set ways in order to categorize these segments. It does so in order to focus entirely on the segments which have thus been chosen and not to concentrate its energies on the segments which are not required or which do not bring in the required profits. Market segmentation is an important metaphor which essentially dictates quite a few aspects – most of which have to do with segmenting, targeting and positioning (Ennis). The buzzword about market segmentation is that it creates subsets based on different premises which remain significant from a marketing standpoint. If these subsets are not involved, there will not be any use in understanding the related perspectives. Instead, the analysis will focus on targeting and positioning tangents, which is not really the key here. Thus, all-out emphasis must always be laid on elements that warrant attention and detail, i.e. on the segmentation of the market alone. This shall pave the way for achieving aspects which were earlier deemed as unattainable and impractical. The need is to find the loopholes and to plug them at the earliest so as to convince the marketers that the segmenting, targeting and positioning regimes are analyzed and fitted in within the marketing circles in an easy way. There is a possibility that every market has ideal segments available within it. However, the fact of the matter is that every organization that is working to achieve its goals and objectives has its peculiar segments which are characterized by varied inclinations. If these segments are not properly demarcated, there is a reason to believe that there shall be gross issues related to targeting and positioning at a later stage. Hence, it is always a good omen to comprehend the true nature of the segmented category before moving ahead any further. It will solve most of the issues related to product placement, pricing tactics, promotional strategies and so on. A clear cut comprehension of the segmented markets essentially helps immensely. It brings things into proper perspectives and resolves predicaments as there is a cut-down on losses in a significant manner. Segmented markets have their own peculiarities which make them stand out in a league of their own. It gives them the required care of the marketers to focus on the prime areas which need the attention in an absolute way. This is a very important area, as far as where the resources shall be emphasized upon to achieve instant results is concerned (Douglas). If successful market segmentation goes hand in hand with the product differentiation strategy, there is no reason why varied segments cannot be handled in an amicable way. Thus, the segments will be exploited in a positive fashion all the same. There would be more focus on elements that are deemed as insignificant yet have a great amount of bearing for the organizations. By the same token, other pertinent aspects would be given the necessary attention that these richly deserve (Vincent). A firm advantage can be achieved if the organization under question has made efforts to combine product differentiation and market segmentation regimes. It shall pave the way for finding out where anomalies exist and how best to counter them in an effective and efficient way. This advantage is a must-have for any organization that is willing to make it big within the marketing realms from a long-term standpoint. In order to understand how market segmentation comes about, there is a dire need to know the exact criteria for having ideal market segmentation. It depends on the following few factors, which include the usefulness in deciding the marketing mix involved, the consistent response towards a given market stimulus, the desire to earn a huge profit, and the internal homogeneousness of the ideal market segment to find out how the potential customers within the same segment depend on the same product qualities as well as the ideal market segment’s external homogeneousness which sees that the potential customers from a number of segments have varied preferences when it comes to quality (Doyle). Then, there is a significant discussion of a possibility to measure the ideal market segment and not to forget the same probability for reaching the potential customers through this organization’s distribution and promotional channels. The premise of making a huge profit remains the most pertinent one under such measures because it dictates the exact process through which success shall be envisioned in the long run. Also the cost-effectiveness needs to be tapped, which shall save the costs as well as bring in the much needed benefits and profits at the end of the day. There are a number of points that basically become the basis for segmenting different consumer markets throughout the world. These include the geographic segmentation, the psychographic segmentation, the positive market segmentation, the behavioral segmentation, on the basis of occasions and benefits. The geographic segmentation is marked by the geographical locations which depend on the nations, states, different regions, cities and neighborhoods. This geographic segmentation gives a good measure of how various segments are brought about when there is the need to understand the territorial restrictions. The psychographic segmentation uses psychology and demographics to understand the needs and requirements of the customers. The consumers are segmented according to their peculiar lifestyles, personality traits, value hierarchies and social class tenets. It is a fact that the consumers within a similar demographic group might have very different psychographic routines. The consumers belonging to the upper social class within a society prefer brands that are of high value and luxury, but the same cannot be written about the ones who are from the lowest possible social class as their tastes are markedly different. Behavioral segmentation is based on the knowledge or attitudinal issues that different consumers exhibit from time to time (Assael). This also includes the responses that are given in the wake of using a particular product or service. The behavior of the consumer counts under such nuances, and hence the name – the behavioral segmentation. Segmentation basically creates the zones under which attitudes are tapped. It brings forward notions which would not have been easier to understand had segmentation not taken place. For a product or service, this solves quite a few issues because segmentation is the basis of understanding where anomalies actually lie and how best to fix them at the earliest possible convenience. Segmentation does not only idealize things (Simkin); it makes them look better through proper zones where energies are directed. It actually allows the different market zones to have a better idea where shortcomings can be plugged and how significant contributions can be made. The need is to comprehend how segmentation has a positive role within the dynamics of an organization that is willing to make it big within the long-run scheme of things. If one sees the same tangents from a demographical setting, there is the need to know where the demographics shall be set and how to move ahead with the relevant nuances. If these differences are created in the name of psychographics, then a combination of psychology and demographics will take care of a number of factors (Verhallen). The same can be written about behavioral segmentation where onus is always there on the behaviors and attitudes of the consumers, and this is the reason why they are segmented in the first place. The most important thing about segmentation is that targeting and positioning would also be given immense significance if seen from a broad perspective. Hence, segmentation must always be seen as an element of marketing dynamics that brings in the much needed value. The marketers need to comprehend where they are going wrong and how best to achieve the goals. First and foremost is the role of market segmentation because it allows the categories to develop. If these categories are not cultivated from the beginning, there is a great amount of chance that anomalies would be encountered within the targeting and positioning realms. If the marketers know the real value of segmentation, they will never think of leaving this premise alone. In fact, they would devote their energies towards enacting measures that shall complete the process of segmentation at the earliest (Christopher). This will tell the marketers and their team members where and how their resources shall be employed and how best to attain their end goals and objectives. The need is to understand how these issues can be resolved at the earliest and to do it in a way that there are not any hiccups encountered at any level. This will set the ball rolling in the right direction and help resolve the ambiguities that come up every now and then, as far as the marketing dynamics are concerned. In conclusion, it would be fair to comment that market segmentation is the key behind achieving quite a few tasks, as far as an organization within this day and age is concerned. It allows the business companies to find out where they are going wrong and how best to maneuver so as to achieve their intended goals and objectives (Hoek). The bottom line remains firmly attached to the fact that market segmentation is for the betterment of the business hubs and thus should always be undertaken to bring in the value which is much needed at the end of the day. The role of the top management realms within the business settings is to account for the segmentation to be carried out in a free and fair way. It will tackle the negativities attached to the organizations which plague it from a number of different angles and perspectives. Works Cited Assael, Henry. “Advances in applied consumer behavior: A market segmentation paradigm”. Advances in Business Marketing and Purchasing, 11 (2002). Christopher, Martin. “Cluster analysis and market segmentation”. European Journal of Marketing, 3.2 (1969). Douglas, Susan. “International market segmentation”. European Journal of Marketing, 6.1 (1972). Doyle, P.M. “Market segmentation by factor analysis”. European Journal of Marketing, 6.1 (1972). Ennis, D.M. “Market Segmentation: A Review”. European Journal of Marketing, 21.5 (1987). Hoek, Janet. “Market segmentation: A search for the Holy Grail?” Journal of Marketing Practice: Applied Marketing Science 2.1 (1996). Simkin, Lyndon. “A program for implementing market segmentation”. Journal of Business & Industrial Marketing 12.1 (1997). Verhallen, Theo. “Domain-specific Market Segmentation”. European Journal of Marketing 28.10 (1994). Vincent, Leslie. “Marketing strategy considerations in the commercialization of new technologies: An overview and framework for strategy development”. Advances in the Study of Entrepreneurship, Innovation & Economic Growth, 18 (2008). Read More