Southwest Essay

1510 words - 7 pages

An assignment about segmentation

* Search using the Internet to answer the following questions:
1. Do you think that there are new basis to segment markets.
Yes there are new basis to segment markets
Types of Segmentation:
(1): Single Segmentation
(2): Multiple Segmentation
(1): Single Segmentation
When an organization has a single type of good or service to sell, it may use market segmentation to find which categories of individuals or organizations are most likely to be interested in the product and to find it superior in some way to any competing product.
Niche Marketing:-
Tailoring the elements of the marketing mix to attract a single market segment.
(2) Multiple ...view middle of the document...

Demographic:
* Age: a market can be divided into four parts(children, young, adults and old)
* Gender: Gender segmentation has long been applied in clothing, hair-styling, cosmetics and magazines
* Income: is a traditional practice followed in product categories such as automobiles, clothing, cosmetics and travel. However, income does not always determine the best customers for a given product. it is also based on variables such as,
* Education: primary , high school , secondary , college , university
* ethnicity
* nationality
* occupation
* Family
* Status
* social class
* language
Psychographic:
This corresponds to the psychological traits of your customers including attributes such as:
* Personality
* Beliefs
* Values
* Lifestyle, attitudes
* Interests , Activities, Opinions
Behavioral:
Markets can be segmented on the basis of buyer behavior as well. Since all Segmentation is in a way related to buyer behavior, one might be tempted to ask why buyer behavior-based segmentation should be a separate method . Variables of buyer behavior are:
* Benefit sought: - Quality / economy / service / look etc of the product
* Usage rate: - Heavy user / moderate user / light user of a product
* User status: - Regular / potential / first time user / irregular /occasional.
* Brand Loyalty: - Hard core loyal / split loyal / shifting / switches
* Occasion: - Holidays and occasion stimulate customer to purchase products
* Attitude toward offering: - Enthusiastic / positive attitude / negative attitude / indifferent / hostile

As a distribution channel
The type of distribution channel you elect to be is your attempt to ensure the company wins profitable customer business, both now and in the future. The specific features on which customers focus when selecting between alternative channels provides a crucial input into segmentation but in a supportive role rather than a determining role. These preferences are best used to help identify the real selection criteria of customers. Channels can, however, play an additional role in segmentation when specific segments can be associated with particular routes to market as the channels they use will provide further help in identifying how to reach them.
Through distribution channels
The particular channel customers choose to use, and the specific company they elect to buy from, is only one aspect of a purchase. Even customers for whom channel is the deciding factor will still, in most instances.
When distribution channels play a key role in the purchase behavior of customers and therefore have to be included in your segmentation project,
1. Segmentation by psychographics
2. Segmentation by customer needs
A customer's views of segmentation — meet my needs!
Customers segment themselves and take no notice of how companies segment their market(s). When choosing between competing products and...

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