Market Segmentation - Essay Example

Market Segmentation Survey In the context of marketing, organizations are sometimes forced to compartmentalize their heterogeneous consumer population into defined segments. This compartmentalization gives rise to the aspect of market segmentation, which involves acknowledging existence of homogeneous population of consumers within a given market. According to Weinstein (2004), market segmentation usually aims at availing products and services to consumers who are more likely to purchase those goods and services. From a theoretical perspective, marketing conducted by business organization entails employment of appropriate marketing mix within consumer environments. In the case of market segmentation, an organization will be able to apply customized marketing mix to the target population. The approach of sales and deign of goods and services sold will differ from those adopted in the larger consumer market. In this case, market segmentation increases chances of gaining returns from goods and services produced in the market. Weinstein (2004) says that segmentation proves advantageous in terms of improved productivity and product quality, and reduction in marketing expenses. In this case, segmentation improves the business prospects of an organization within an integrated marketing environment. Prior to making decisions regarding market segmentation, the marketing management needs to acquire relevant information concerning actual trends within the heterogeneous consumer market. Such relevant information results from objective analysis of the market through research exercises. Findings from customized research will supplement information reflecting the actual status and image of target market. According to Smith (2012), one appropriate method of acquiring information is survey, which entails obtaining quantitative and qualitative information from participants within a given market. As acknowledged within the preceding clause, survey mainly involves acquisition of quantitative information. In this regard, survey methodology entails application of techniques meant to elicit quantitative responses from the sampled population. According to Smith (2012), these techniques are largely scientific in nature; hence strives to ensure prevalence of validity and reliability in resultant findings. Survey comprise of elemental phases like population sampling, adoption of appropriate research design, data collection, and finally analysis of resultant data into meaningful information. In order to maintain objectivity, researchers need to follow all these steps. In this essay, we will appraise utilization of survey methodology in obtaining information about market segmentation in Doha. The company conducting this survey plans to sell fast food to university students in the CBE. Hankin and Rhoads (2011) agree that from a theoretical perspective, fast foods are usually associated with negative effects on health concerns of consumers. In this case, the company needs substantial knowledge before deciding to roll out a fast food program within the university’s premises. The desired market segment within the selected consumer population aims at evaluating the potential of female students in purchasing fast food from the company’s outlets. In order to obtain informed data, we will customize research questions to evaluate the students’ concerns on consumption of healthy food. All the campuses of CBE have a vast number of students. Therefore, the survey started by obtaining a representative sample from the entire female student population. The sample comprised of students aged between 21-28years of age. Approximately 75% of the sample comprised of undergraduate students. The entire sample comprised of 100 students, all of which were female students. On the aspect of research design, the survey exercise adopted the use of questionnaires in acquiring information from the sampled students. Based on the work of Jessen (2008), questionnaires proved effective in acquiring first hand information from the target consumers; hence enhancing objectivity and reality of information obtained. In this regard, the exercise used primary sources in as the mist appropriate mode of data collection. During the data collection process, the survey briefed students on the nature of questions and answers expected during the research. During the orientation process, students received assurance on ethical issues guiding the research. All information given by participants would be confidential. In addition, students were not supposed to write names or any identification content in the questionnaires. Questions contained within the questionnaire paper revolved around the aspects of healthy food, and the corresponding students’ concerns on these aspects of health. In student responses, the questionnaires adopted the use of a scale that will yield quantitative data sets. In this case, a Likert scale used involves scores ranging from 1-5, whereby 1 signifies strongly agree and 5 represents strongly disagree response. According to Jessen (2008), the number 2, 3 and 4 were intermediates of either an affirmative or a negative response on the underlying question. All the 100 students participated in the filling of questionnaires. At the end of the exercise, 80% of all the participants responded successfully to all the questions asked. The next step involved analysis of the data acquired from the research. In this phase, appropriate statistical techniques finds application in analyzing resultant data from the questionnaires. Jessen (2008) says that in the survey, mean scores of responses from each question reflected the average response of the sampled population. In a specific instance, students were asked whether they are concerned about consuming healthy food in all their meals. Mean responses obtained from the question yielded a mean score of 3.5. In addition, the female students were required to response about their concerns on weight related problems. Based on responses from the question on weight, data analysis yielded a mean score of 2.1 from the entre data set. Another statement within the survey questionnaire stated that I am usually concerned about health food because of illnesses and other related medical conditions. Responses from this statement on a Likert scale yielded a mean score of 4.0. Apart from the use of average score, the data analysis involved the use of correlational analysis whereby student responses on the issue of health, and weight concerns were compared with the aspects of tendency to consume healthy food. In this case, the research team obtained a Pearson correlation coefficient of -0.5. In order to comprehend the value of acquired statistical figures in relation to market segment desired, we will carry out an objective interpretation exercise. On the question of healthy food, the means score of 3.5 signifies presence of pronounced negative responses from the sample population. In this case, most students responded that they are not usually concerned on consuming healthy food. On the other statement on their concerns on weigh, a significant number of female students admit that they are concerned about their weight. According to Wagner and Wedel (2010), the Mean score of 2.1 on all responses signifies presence of substantial affirmative responses as compared to negative scores on the Likert scale. Finally, the segment on healthy food and illnesses yielded a mean score of 4.0. This large number on the scale’s range means that most students are not concerned about illnesses in selecting the type of food they consume. On the element of Pearson Correlation coefficient, the resultant value of -0.5 means that there is a significant negative relationship between the tendency to consume healthy food and that of health and weight concerns. At this juncture, we can ascertain with a 95% confidence limit that approximately 0% of sampled female students are not concerned with consumption of healthy food. In conclusion, the survey exercise signifies that there is a potential niche market of fast food within CBE’s campuses. According to Wagner and Wedel (2010), analysis of data indicates that most female students within the market are not concerned with the consumption of healthy food. In this case, the female student population within the university’s campuses qualifies as a market segment. In this case, the segment will respond differently to the fast food products compared to the general student population, which may avoid fast food for health related fears. According to Smith (2012), the percentage of those ready to consume fast food proves to be substantial enough to yield enough revenue from sales. The university market is accessible; hence will facilitate implementation of pre-determined marketing mix within the segment. Reference List Hankin, J. Y. & Rhoads, G. (2011). National Survey Data on Food Consumption: Uses and Recommendations. Doha: National Academics Press. Jessen, J. R. (2008). Statistical survey techniques. New York: John Wiley and Sons Publishing. Smith, D. M. (2012). Overseas Marketing Survey: A guide of expert segmentation. Los Angeles: University of California Press. Wedel, M. A. & Wagner, A. K. (2010). Market segmentation: conceptual and methodological foundations. Pittsburgh: Springer Publishing. Weinstein, A. (2004). Market segmentation: Using demographics, psychographics and other niche marketing techniques. Cardiff: Probus Publishing Company. Read More