Various types of market segments
Market segments are generally categorized into two perspectives that include segments based on the group of products or service providers in a given industry and segments based on a particular category of buyers. For an ideal market segment several consideration ought to be considered so that the market can meet the conditions of being worthwhile. Such conditions include the fact that the segment must be capable of being measured and has to be large enough to generate profits. At the same time, the market must be stable enough to last for a reasonable duration. The customers should also be capable of being reached through marketing activities and should have different preferences for a given product. The market should respond in a given manner in relation to different marketing mix and data must be available to enable a targeted sales approach.
Segmentation occurs in various forms that includes geographic segmentation. This entails segmenting a market based on its locality. The phone business can target several countries, nations, cities, neighborhoods or even regions (McDonald & Dunbar, 2013). To help a manager decide on the best geographical position, demographical data and geographical data should be used to create a more accurate and specific profile. For a small business, the business could be segmented locally and within the neighborhoods while big business could be based on international international considerations. It should be noted that different geographical regions have different preferences. Demographical segmentation is a segmentation that is based on demographic patterns including age, gender or according to perceived benefits product/service benefit. Behavioral segmentation characterizes consumers based on their attitude towards a product, their usage rates or loyalty status. Psychographic segmentation is also called lifestyle segmentation entails segmenting the market based on their interests in spending pattern (Weinstein & Cahill, 2014). Cultural segmentation entails segmenting the market based on cultural origin. This enables appropriate communication to be customized to a given community. It can also be done according to nations, countries, states and neighborhoods
Mainstream” segments and “niche” segments?
A niche segment is a small but defined and specific segment of the population (Davidson, 2003). The targeted audience can be differentiated based on price, quality and other differentiated strategies. . The targeted audiences are usually small but are generally well off and encompasses the high end market. From the various market segmentation forms, lifestyle segmentation, cultural segmentation and behavioral segmentation can be good examples of niche segments since they represents a specific class of people who portrays certain characteristics. Mainstream segments appeals to the broader community and the products and services are readily available for purchase in the market. Geographical segmentation, cultural segmentation and demographic segments would generally represent the mainstream segments since it addresses a general category of people.
Different market segments template
Psychographic segmentation features and expectations
Being a new phone with new features in the market, one of the market segment that would best fit the target population is the psychographic segmentation. As indicated, understanding the lifestyle patterns of individuals or end users may help in determining the kind of product that would be introduced in the market. Some of the features that the cellphone might have to achieve the market segment condition would include attractive packaging, high price, added features, warranties and guarantees and unique in nature. If the phone has superior packaging, it may be liked by many middle and high class consumers who appreciate the value of a product. At the same time, if the price of the phone creates a social class distinct from others in the industry, the consumer may have the perception that it is of a high quality and worth. Providing extended services lie guarantees and warrants may also help the company achieve competitive advantage over other that do not offer extended services like guarantees.
Davidson, B. (2003). Breakthrough: How Great Companies Set Outrageous Objectives and Achieve Them. Hoboken: John Wiley & Sons.
McDonald, M., & Dunbar, I. (2013). Market segmentation: How to do it, how to profit from it. Chichester: John Wiley & Sons.
Weinstein, A., & Cahill, D. J. (2014). Lifestyle Market Segmentation. Routledge.