Paper On Environmental Analysis
A company cannot serve in large markets, because there are numerous customers with diverse backgrounds and needs. Marketers therefore look for specific markets segments they can serve effectively and successfully. Instead of looking at the entire market they look at their product and then focus on the customers best suited for their product. This increases the effectiveness of the, marketing programs and improves satisfaction.
“Segment marketing consists of a large identifiable group within a market, with similar wants, purchasing power, geographical location, buying attitudes, or buying habits.”(Kotler 164)
Some of the various steps involved in segmentation are the Survey stage, Analysis stage and the profiling stage. The survey stage is where the researcher conducts in-depth interviews with focus groups, which helps understand customer needs, attitudes and behavior. Then we have the data collection stage where the researcher collects data on various other attributes and their importance to the consumer. The data collected also contains information pertaining to demography, geography etc. In the analysis stage the researcher applies theories such as factor analysis and cluster analysis to arrive at different segments. In the profiling stage each cluster is profiled in terms of its distinguishing attitudes, behavior, demographics, and media patterns, and then each segment is given a name based on its dominant characteristics.
Demographic Segmentation
“In demographic segmentation, the market is divided into groups on the basis of age and the other variables like family, family size, gender, income, occupation etc. One reason this is the most popular consumer segmentation method is that the consumer wants, preferences, and usage rates are often associated with demographic variables.” (Kotler 167)
Demographic Segmentation for University of Phoenix Graduate program
Age Over the age of...
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