Wednesday, November 23, 2016

Segmenting market

Hey again! Today I want to talk about segmenting market for my product. I hope that I understood theory correct :pp  and this information will be helpful not only for me, but for you too.

First I will describe  the market segment my product aims for, targeting strategy. And which market segmentation criteria are used . And also the positioning strategy used for my product.

Ø There are four types of market. Demographic, behavioristic, psychographic, geographic segmentations. Sony aims on psychographic and demographic variables.The psychographic segmentation is one which uses people lifestyle, activities, interests, personal attributes and motives. Also psychographic variable can tell about consumer buying behavior. The right decision is made according to intuition and marketer experience.

Ø Demographic segmentation. Segmentation what are made according to age, gender, race, religion, social class, family life cycle etc. This segmentation mostly used by companies for marketing research, because reaction on the product depends on demographic factors. Mostly companies segment consumers by age, wages, their work, family life cycle and size of the family.

Ø If we are talking about Sony Corporation that their targeting strategy is target a different product and marketing programme at each of a number of segments. It is because Sony Corporation sells products which includes memory devices, video games systems, cameras, computers, televisions DVD payers and phones. But if we are talking about my product Sony phone there targeting strategy more will be offering one product and marketing programme to a number of segments. But Sony phones are divided into different kinds of phones and tagret on different type of costumers.

Ø Market segmentation criteria used for Sony phones product is multivariable segmentation. This segmentation using more than one characteristic to divide a total market. For example, costumers want one brand of company, but with the different characteristics. Some customers want phone with good camera, some with large memory, some with beautiful design etc.

Ø Three most critical elements for successful positioning are:
1.The specialty should be different/unique.
2.It should be credible.
3.It should be relevant/important. 

The positioning strategy how the company will act on the market to cultivate the desired brand position among a given target segment in a given market. The strategy for Sony phone is developing their product as much as possible. Sony phones sales decrease last years, and profit dropped, so now Sony is trying to do their best to bring back their high position on the market. And they try to do it with improving all characteristics of their product.

The next question is about segmenting marketing, the basic conditions for effective segmentation and evaluation whether these conditions are met for the segments I described before.For effective segmentation are applied measurable, substantial, accessible, stable and useful basis conditions.

Ø  First of all, its measurable basis condition. This basis can be met at psychographic and demographic segments. For example, demographic variables, these can be measured: different age groups, gender, also social classes, family sizes. All of these variables can be measured in other groups. Also, psychographic segment, there people can be divided into groups with different motives, lifestyles. For instance, group of people who like sport, or who like to sit at home. There are different variable of groups and these can be measured.

Ø  These segments are large enough to be sufficiently profitable to justify developing and maintaining a specific marketing mix. Sony phones are pretty large company and they can make profit from their sales. The segments concern more high class of population, and also segment of high income, people should be in is these groups, so actually, and most of all they are, so Sony gains good income.

Ø  These segments aren’t accessible, because Sony phone aren’t available for all customers. Sony phones are expensive and not all people can allow to buy their phones.

Ø  Segmentation is stable. For example, Sony company has their own design of phones, also characteristics differ from the other companies. There are a lot of Sony fans, what uses Sony products for a long time. But Sony lost their position on the market. And also a lot of Sony customers want to switch their phones for the Apple company phone. IPhone took Sony phones place on the market.

Ø  This segmentation is useful. This segmentation increases the sales of the company. If company wouldn’t use the segmentation strategy they would spend their money for nothing, because if you don’t have any strategies, if you don’t know your target market you wouldn’t know where and how to sell your product.

That's all for today;pp

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