Market segmentation is the activity which involves grouping of potential customers based on their characteristics. According to Venter et al. this activity is crucial since it helps the marketers of a given product target a specific niche from which they are likely to get more sales (74). Through proper segmentation and targeting a company stands a chance of making high profits. Markets are segmented based on behavioral difference, demographics, psychographics and geographic factors. Demographic segmentation considers the age, sex, occupation, race, education, ethnicity, income and family when targeting potential customers. Psychographic segmentation looks at the attitude, interest and lifestyle of the potential customers. In behavioral difference, a person’s personal behavior is analyzed and lastly in geographic segmentation the potential customers’ geographic location is considered. Below are some products with detailed explanation of their market segmentation.
High-end Automatic Espresso Maker
An automatic espresso maker is a new trend in the kitchen appliance industry (Venter 74). Coffee drinks are common in the Western European country markets like France and Germany amongst others (” Bartleby.Com, 2017). People in such countries are fond of taking coffee which makes it an integral part of their lifestyle for stimulation purposes. Hence this product’s most potential market is Western Europe. However, because of its high price, the rich make the market segment that demands this commodity most. They would like to be associated with this fashionable coffee-maker as a ‘class’ aspect. Espresso machines are averagely priced, but the rich like to be associated with high-end products which are abnormally priced. It is therefore clear that espresso manufacturers use this psychographic segmentation to sell in such homesteads since their needs are inclined towards class.
A person’s routine dictates what they consume or what preference they have when it comes to certain consumption patterns (Venter 74). It can therefore be concluded that people who undertake sports activities are likely to demand for most soft drinks, taking behavioral segmentation into consideration. This is because they would like to replenish their energy or rather rejuvenate their bodies using cool soft drinks (“Soft Drink Market 2017,2018,2019, Soft Drink Industry Analysis, Soft Drink Market Size, Segmentation – Technavio”). Consequently, most of such products are advertised using athlete models to create the behavioral appeal. Such people (sportsmen) have a tendency of consuming fluids while undertaking their routine sports activities hence making them a potential target market for soft drinks.
Children get fascinated with the Disney mysteries and illusion hence would like to watch such movies all the time (Schlittgen 4591). Parents also recommend Disney movies to their young ones since the entertainment company produces less psychologically corruptive content. It is therefore clear that such movies will sell to this age group than any other. Parents concerned about their children’s welfare are also likely to buy such movies for their kids, hence portraying a psychographic segmentation scenario (“Market Segmentation And How To Increase Sales | Quickbooks”). As such one should target this market segment since it is likely to respond well to the product supply thus elevating market penetration.
Affordable Wireless Headphones
Wireless head phones are the ‘in-thing’ with respect to the present youth, a generation which likes to be associated with modern life trend dynamics. In most cases majority of the youths are students; they do not have significant disposable incomes hence would prefer purchasing products at the least prices possible as a general behavioral aspect (Schlittgen 4585). This age group also likes imitating famous music artists, mostly in the fields of hip hop and R&B amongst other genres. Listening to music is their hobby. As a result when they find affordable wireless headphones, the youth are likely to purchase these products. Therefore, headphone manufacturing is a trade whose market is created majorly by the youth.
Channel is a high fashioned company producing a range of products ranging from bags to shoes (Venter 75). This company is known worldwide and produces classy products. With the rise of the social class in ladies who like buying stylish products and show-case them online such a company is likely to benefit a lot if it targets this segment. These types of ladies have huge disposable incomes and love to spend it on shopping. By targeting this section of the market, Channel is likely to make more sales hence garnering maximum profit which is the goal of every business.