Question

Using a business/organization of your choice, explain how that entity segments its market.

Answer 1

Market Segmentation which means the set of people who share or kept almost same taste and prefernces in the case of their consuption pattern, that means market segmentation means the classify the buyers into different group. For instance if we consider one Umbrella manufacturing company there is homogeneous product that is umbrella but they do market segmentation to target the buyers so they produce for children using some cartoon characters and more colourful and attractive design at the same time they produce for adults using elegent colors and comfortable design etc these type of catagorization of homogeneous product and buyers called market segment.

The main advantage of market segmentation is ,which alleviate the central economic issues like for what, how and whome questions. More than that it will increase the market efficiency and this increse the market power. The companies using market segmentation mainly for temporary period so that the effect create a hype in the profit. So this is cosidered as best sales maximisation method.

The market segmentation are 5 type they are classified on the basis of demography, phsycology,behaviour, geography and firmography. One firm produce goods using celibriety icons that is an example of behaviuor because there is considered their interst or hobbies etc. At the sametime cinema or entertinement industry mainly do segmentation onthe basis of phsycological factors. However Automobile industry do segmentation on the basis of the geographic matters.Machine manufactures consider firmography on the other hand, Hotel industries or travel and tourism they give importance to demographic features while do market segmentation. Thus entities segments their market to improve the efficiency of marketing or customers or buyers.

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