Marketing Segmentation free essay sample

A relatively small firm should use market segmentation to find a  niche  in the marketplace because it is realistically impossible for a small firm to compete against a much bigger firm in marketing the similar product. For example, magine the difficulties in developing a new brand of cola and competing against Coke and Pepsi. So by finding a small niche in the marketplace, it’ll be a much more successful approach. For example, this is what Snapple and Tom’s Of Maine toothpaste did. `Market Segmentation and Targeting’ (Journal of Internet Commerce, 2007,  6(1), 83-99. `Weinstein(2004, 3) claimed that’ the overall purpose of using market segmentation is to improve a company’s competitive positon and better serve the needs of the customers. Other objectives of market segmentation includes increasing sales, improved market share and also to enhanced the image and reputation of the business. On top of that, market segmentation can also help businesses to Differentiate your products and services to meet your customer needs and desire, find hidden needs and make improvements to your existing products, Target your marketing mix to the customers most likely to ant your products or services,  Identify behaviors and buying motives for your products,  Identify your most and least profitable customers,   Help you avoid unprofitable markets and   Increase brand loyalty and decrease brand switching. `Market’ segmentation services’ (Goldberg, 2008). There is no single way segment a market. A marketer has to try to different segmentation variables , alone and in combination to find the best way to view the market structure. There are three type of variables that marketers look at when they segment the market. Variables such as geographic, demographic, pyschographic and behavioral variables. Geographic segmentations calls for dividing the market into different geographical units such as nations, regions, province, parishes, cities, or even neighborhoods. Depending on its budget, a company may decide to operate in one or a few geographical areas or to operate in all areas but pay attention to geographical differences in needs and wants. The other segmentation variable that marketers look at is demographic segmentation. Demographic segmentation is when company divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation and nationality. These different criteria’s differentiates the needs and wants from each individual consumer. Other than that, companies also look at psychographic segmentation. Psychographic segmentation divides buyers into different group based on social class, lifestyle, or personality characteristics. Last but not least, behavioural segmentation divides consumers into group based on consumer knowledge, attitudes, uses, or the responses to a product. (Kotler and Armstrong 2010, 216). 2. 0 Target market identification. The primary target for this report would be Beyonce Giselle Knowless, known as Beyonce internationally. Beyonce is an actress, model and a renown ramp;b artist. Beyonce first started her recording career with 2 other female artist, Kelly Rowland and Michelle Williams in a group called `destiny child’ and later on went solo in the year 2000. As someone who is fond of fashion, Knowles combines its artistic elements with her music videos and performances; she uses different styles and tries to harmonize it with the music while performing. Beyonce is one of the most influential star icons in this century without a doubt. Just like many others, Beyonce divides her fans into groups based on demographic, geographic, psychographic and behavioural traits. 2. 1 Geographical traits Geographic segmentation is important for Beyonce and the line of work that she is in. Having said, the intended audience for a given product is divided according to geographic units, such as nations, states, regions, counties, cities, or neighborhoods to fit the needs of individual geographic areas, localizing the products, advertising, and sales effort to geographic differences in needs and wants. Marketers will also study the population density or regional climate as factors of geographic segmentation. This is why Beyonce only have her tours and concerts in specific states and not the entire country. When she had her 2009 tour in Australia, she only performed in several states such as Melbourne, Sydney, Adelaide and Perth. (Liveguide, 2009). 2. 2 Demographic Traits. The line of work that Beyonce is in, demographic segmentation will most probably be her priority in segmenting her customer groups. This is because consumer needs, wants and usage often vary closely with demographics variables. (Kotler and Armstrong 2010, 218). Majority of Beyonce’s target group are age from 17 – 34. Next, most of Beyonce targeted group are in high school, post graduates and graduates. Although Beyonce’s music is suitable for both male and female, however 54% of her fans are female and 46% are males. An estimated 54% of her fans have no children while the rest of the 46% has. In addition, Beyonce’s target market group consists of several nationalities. The majority of them are American- Africans while the rest are Asians, Australians and Americans. Majority of her fans are less affluent as compare to others because most of her fans are not at the age where they earn a lot of money or still studying. An estimated 33% of her fans earns between 30-60 thousand Usd per annum. Quantcast audience profile 2010) 2. 3 Psychographic Traits. Psychographic segmentation consists of traits such as social class, the lifestyle and personality. Relating to the primary target Beyonce, majority of her target group falls under the three category of the social class trait. Majority of them are in lower lowers, upper lowers and a minority of them are in the working class. M arketers often segment their markets by consumer lifestyles and base their marketing strategies on the lifestyles appeal. For Beyonce, majority of her target group are teenagers and pop lifestyle is the sort of lifestyle that Beyonce target. As for personality traits, due to the wide range of personality that this world has, Beyonce’s music usually targets female with a much sensitive and emotional personality. 2. 4 Behavioral Traits. Behavioral segmentation is about dividing buyers based on their knowledge, attitudes , uses and responses to a product. Markets can be also segmented into usage rates , readiness stage and overall attitude towards the brand. For Beyonce, this is a important trait to look at because by understanding this traits, Beyonce will then be able to produce songs and product that serves the needs and wants of the consumers. On top of that, Beyonce can then produce her products based on usage rates of her consumer, user status and loyalty status. By understanding these traits, it’ll help Beyonce save production cost and generate even more profit. 3. 0 Discussion/ rationale of the target market collage. The market place for Beyonce is massive because everything revolves around her industry which is media entertainments. The collage illustrates the target market group for Beyonce. It clearly shows the multidimensional approach that Beyonce has considered in segmenting the market for her business. With geographic segmentation, Beyonce has travel a lot of places to promote new release albums and to enhance her popularity. She has been almost all over Europe and in recent years, she had her tour in few of the major cities in Australia. States such as Melbourne, Sydney, Adelaide, and Perth to promote her â€Å"The Beyonce Experience Tour†. (liveguide, 2009). After having seen, it’s obvious that Beyonce’s popularity only exist in couple of the major states in Australia. However, by touring and performing live concerts will definitely enhanced her popularity in Australia. The majority of Beyonce fans are teenagers but there are adults that adore her as well. The age group that listens to Beyonce’s music starts from the tender age of 15. Most of Beyonce’s fans are female and only a handful of them are males. Beyonce music attracts all sorts of race and nationality in this world but the majority o her fan bases are American- Africans. As we know, Beyonce is world renowned `POP’ amp; `RnB’ musician, therefore the colors that she uses in her advertisements, the color of her dress in her videos and so on represents the approach and the image that she trying to give to society. Majority of Beyonce fans are teenagers that still adores dancing, mingling and partying. However, some of her fans relate their personal emotions and issues with Beyonce’s music. By knowing her targeted group, Beyonce generically write music that she knows her fans can and will listen too. With this knowledge and talent, Beyonce then concentrate in producing her music depending to wants and needs of the consumer in different times. For example, Beyonce would produce Christmas songs during Christmas season. The genre of Beyonce’s music also influence greatly on which market group she attracts and targets. Most of the consumers that listens and purchases her music are usually RnB , Pop, and sentimental song lovers. Because Beyonce is so influential with her looks and music, many people tends to follow the way she dresses and looks. With this, unlimited business potential arises for Beyonce. She has clothing lines that belongs to her, perfumes and many more product that majority of her target group which are females would purchase.