Market Segmentation For Business-Btechnd
Explain and propose segmentation criteria for new smart phone product for two different markets (e.g. using the approach of behavior segmentation, benefit segmentation, demographic segmentation, or psycho graphic segmentation) (Assessment Criteria 2.2)
The market segmentation has been used by the organisations for dividing the markets in small homogeneous market in order to response to different preferences, and understanding the variations in the wants the customers.(Deshpande, and Rundle-Thiele, 2011)After segmenting the wide market into small units the organisation can efficiently fulfil different demands of different customers.
There are different criteria over segmenting a market:
- Demographic segmentation: In these criteria the family, age, social status, religion and occupation etc are considered for the segmenting the market.
- Behavioral segmentation: market segmentation based on behaviours, attitudes, uses, knowledge over the products are considered within this segmentation. (Deshpande, and Rundle-Thiele, 2011)
- Psychographic segmentation: different personality traits, values, interests, attitudes, lifestyles of the consumers are considered within this segmentation.
- Benefit segmentation: in this segmentation the market has been divided based on the perceived values provided by the product. The advantages that the customers or purchaser will get after buying this product are considered within this segmentation. (BOSE, 2010)
Markets can be divided into two categories such as business market and consumer market. Considering these two markets the segmentation criteria of the Smart Phone can be assessed:
In B2B market the segmentation has been done through considering the purchasing behaviors of the organisations. The use of the Smart Phones on the organisation and their demands of features for business or office purposes have been considered while segmenting the market through behavioral segmentation criteria.(Jobber, and Ellis-Chadwick, 2012) The benefit segmentation has been mostly considered within this market as the organisation seeks profits or benefits over using the smart phone. By evaluating the beneficial aspects over usages of smart phone in the office purposes such as using the apps for conference calls, MS office app for office work, apps for emails, apps for communications or groupware for interactions etc. The sector in which the business has been operating and their size must be analysed to have knowledge over their consumption.
In B2C market of smart phone the market can be segmented by analysing the usages and the demands of different ages, people of different income profiles over the features. People with different personalities can require diverse features within the smart phone and also their profitability perspectives can be changed according to their psychographic characteristics. The organisation can segment their consumer market through behaviour and benefit segmentation criteria. (Deshpande, and Rundle-Thiele, 2011)
Use examples from the two markets used in the above answer to demonstrate how buyer behaviour affects marketing activities in the different buying situations.
The behaviours of buyers and consumers impact over the business. These are the behaviours of buying and purchasing the products of the customers. There are different factors which impact over the buyers’ behaviour of buying by analysing these factors organisations tend to make efficient approaches in the market. Social and cultural factors, technological factors, psychological factors, beneficial factors etc which are associated with buying behaviours can impact over marketing activities. By considering two markets in smart phone different influences of buyers’ behaviours over marketing activities can be assessed. (Jobber, and Ellis-Chadwick, 2012)
In consumer market different purchasing behaviors or attitudes can be observed. In respect with the social factors economical background, income status, occupation, lifestyles are impacting over the behaviors of buying. The consumer of upper class economic background can spend higher prices over the smart phone. Considering this aspect the organisation can set the prices higher for targeting this consumer group. The consumers having higher position in the occupation also buy the smart phone with wide range of features for having benefits in the office usages or for other purpose. (Kotler, and Armstrong, 2010)
Cultural trends are the major one among other factors. The current cultural trends of using smart phone are impacting the behaviors of buying a phone. In current situation all generations are using the smart phones as different features are also becoming essential in maintaining communication, connection, fulfilling daily purpose etc. Considering this the smart phone can be placed within the market with efficient manner and by fulfilling the demands of consumers.
With the innovation and evolution in the technological worlds the usages of technologies are changing with fast pace. Considering this the consumers are also using smart phone offering grater benefits and different useful apps. (Kotler, and Armstrong, 2010)
The technological factors are also impacting over the business markets. With the improvements with the technologies the business are also changing their approaches and activities. In different organisation the employees are provided a smart phone for enhancing the availability and communication. (Kotler, and Armstrong, 2010)
Propose a suitable targeting strategy and positioning for smart phone product.
After segmenting the market targeting is necessary for the organisation. By targeting potential segment the organisation can achieve success within the business.
There are different targeting strategies within the marketing activities:
In the market of Smart Phone the competition is higher than other sectors. As result placing the Smart phone with efficient manner to raise the demands or attracting the customers need a proper targeting strategy. In order to have proper success with the product the organisation needs to target the market segment consisting of preferences and demands over the usages of smart phone. In order to achieve the success differentiation strategy should be conducted over smart phone.
For attracting the current generation different useful features and attractive measures within these features should be placed. The young generation consumers can be targeted by adding apps of social media, bigger size of RAM or internal strategies or offering extra equipment with the purchase of these products like earphones, extra memory chips, covers etc. Placing different features than the rivals would be needed to target the segments of behaviours and psychographic. The Smart Phone should target the market segments by offering diverse facilities over the features of phone. (Henley, Raffin, and Caemmerer, 2011)
After targeting the market segments the products need to be placed or positioned within the market. Through proper strategy of positioning the organisation can place the Smart Phone in the market with successful measures. In order to position the Smart Phone efficient pricing strategy should be chosen. The promotional mixes must be considered in order to have promotional campaign over the product. Through proper promotions the images of the products can be placed in the mind of the consumers. (Deshpande, and Rundle-Thiele, 2011)
The marketing principle has different concepts involving the business approaches. The above document has been constructed over these concepts and their illustration has been drawn over a Smart Phone organisation. In current market situation and with the development of the technologies the organisations are choosing the market oriented approaches rather than product oriented approaches. The customers are becoming the major focus for having success in the business. Through the implementations of proper marketing approaches the businesses are satisfyingthe needs of the customers. Different approaches must be made for approaching the business market as well as consumer market. The marketing approaches in the international market are considered as the main attraction for organisations for extending the business and maximising the profits.
Allyson Dooley, J., C. Jones, S. and Iverson, D., 2012. Web 2.0: an assessment of social marketing principles. Journal of Social Marketing, 2(3), pp.207-221.
Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014. Principles of marketing. Pearson Australia.Order Now