Segmentation mean divide market place in different parts or in small groups which means dividing market, department will look for common characteristic such as their interest, similar lifestyle and common needs. The purpose of market segmentation is to find out the most growth potential segment. And the most important thing is known that these all segmentation are not created by the company, but it exit in the company.Benefits to do this? The benefit we will get through market segmentation we can target our customers directly and cause of this we can gain maximize profit and the company can get potential growth.Segmentation has divided into 4 main parts.
GeographicDemographicPsychographicBehaviouralGeographic.In geographic segmentation department do segmentation through by country wise, region wise and the city wise. Example. We made a warm jacket and now we will find out which countries we should target we can’t target warm countries because there’s weather is not cold, and they don’t need the warm jacket so through geographic segmentation we will understand where we should target hot or cold country and which city and region. The benefit of geographic segmentation is that we can guess, or we can get our market target easily without taking any kind of big risk.Demographic.In Demographic segmentation department focus on 3 most important things.
Market Segmentation Essay Example
Age. It means In Demographic segmentation department target their consumer by age wise. And it is very important because customers need and wants getting change with their age.Gender. In Demographic segmentation department chooses who they should target male or female it could be depend on the product as well.Income. It means this department target those people who can afford this product.
If they want to sell BMW, Ferrari or any luxury product their main target group will high income consumers.Example. We can see the Coca Cola company they target their coke to young generation age b/w 15 to 30 and diet coke age b/w 30 to 50 and they target more male then female and income wise mostly everyone can afford. This is the reason Coke is the most successful drink and it is also very popular in many countries.The benefit of Demographic segmentation is segmentation we will fully understand the target and we can more concentrate and our focus will be on the right place and we will get the success and we can generate more revenue in that target market.Psychographic.Two main things that department focus in this segmentation arePersonalityIn psychographic segmentation personality is depend on the consumer life style and social class.
A rich person personality has high power to buy the products different taste in clothes to maintain their life style.Life StyleIn psychographics, department is targeting and understanding the hobbies and interest of the peoples their and habits.Example. A bike Harley Davidson, biker who drive that bike when we are thinking about that bike something coming in our mind that they would be the tall and big people who drive that bike and have rough life style. This is the personality build by Harley Davidson Bike.Behavioural.Most of business have two ways to grow their business first to make new customer and the second is maintain good relationship with your existing customers.
This segment is based on the loyalty of consumers, occasion, user status and the usage of product.It means consumers who makes purchases they shows their loyalty or behaviour when they pay for the product sometime their behaviour will get change when they purchase.And this is the fact of the businesses sometime 20% customers will give you 80% business and sometime 80% gives 20% business. So that 20% who give 80% business they will be more loyal with the brand and they might be have good relationship with company, so this segmentation must target those people who are more loyal with brand and this the reason this department more focus on those peoples.Gucci SegmentationDemographic.Demographically, Gucci produce their T-Shirt for male, female, children’s and for adults. Their main target is age between 18 to 35 and young and rich generation or higher income group and sometime age goes up down because its depend on the consumers who can afford.
This brand is for those people who love brands and want to impress others and show their life style and have a high class and strong financial base. This is the reason not everyone could afford this brand just few people can afford it and this brand does not consider the middle-class brand or the economy-class brand.Psychographic.Gucci has been working very hard from last few years and this brand strictly concentrate on the life style and specially their T-Shirt design. Over the years of the success in the business from the begning this brand T-Shirt targeted the life style of their consumer most of them are Actors, athletes and songsters and because of these people buying decision bringing more followers to the company.The reason Gucci brand T-Shirt focus on psychographic because it satisfies them and this the way to make more profit noticing the fact that their brands are very expensive, and the quality is also very good. Gucci is highly desired and the most valuable Italian luxury brand.