Market Segmentation Essay Example | Topics and Well Written Essays - 750 words

Market Segmentation - Essay faceLastly, the friendship seeks for a unique securities industrying segment that is not macrocosm practised by their competitors. This plays a big role in enabling companies to achieve a high market share, thus generating a comfort factor since the buyers go away see it as a market leader. Through this, nearly pipeline entities are able to better their competitive positions and satisfy their customer needs (Burrows, 2010). For an adequate marketing dodge to take place, a manager has to determine and identify the boundaries indoors the market and with the help of a occupancy plan, develop a clear definition of a business to be in operation. Then, the manager should suffer enough knowledge and all the relevant information about the goods and services provided by the competitors in carnal knowledge to the basic requirements of the customers in the market. The company, therefore, would determine the methodology and variables to use in dividing its market into subsets. Research faunas are introduced in the process of collecting and analysing data with the purposes of identifying a homogenous segment which, at the same time, is heterogeneous to the another(prenominal) segments. Basing on the consumers behaviour, a company selects the variables that will assist it in creating a detailed profile of to each one distinct segment (Burrows, 2010). Then the marketing manager looks for the potential customer with needs and wants that require being satisfied in respect to the business they had identified in the previous steps. Finally a output and market plan is developed to make an appeal to a specific market segment. All these feature together will attract a customer to purchase a particular product that will satisfy his or her needs and wants. Market segmentation is considered as a decision making tool for most of the marketing managers in the selection of a target market for their goods and services. Product differentiation tec hniques pee frustrated companies expectations since they were purposed to provide a variety of products rather than offering different segments, therefore leading most of the companies to embrace the segmentation. Marketing managers use segmentation in defining the market, i.e. they are able to perceive their market from a consumers point of view rather than a manufacturers. Managers gain the knowledge and capacity to rationalise policies for available commodities so that they can outshine their competitors by protecting their products from any competitive invest and also work towards achieving a high market share. They harmonise the different segments in a company by catering for the segments that are perceived to be more important, and minimising the competition between the goods and services within a company. This simply means that managers rely on the segmentation process to position ranges of their existing products (Croft, 1994). Since not all existing products can satisfy the needs of each segment, the managers identify the gaps and take an initiative of open up a brand new or an already available commodity to solve the shortcoming. Companies with small scattering channels use segmentation to sell their goods and services in specific parts of a country. A marketing manager uses the GNP per capita and different behaviours of the customers in the area of concern to determine the marketing strategy to be used in meeting their needs. Demographic variable in market segmentation explains