Question

State two examples of business segments and explain why these would be feasible business segments. You can use examples from your work or pick a publicly held company and describe the segments that company may have.

Answer 1

The first example of business segment is of IT firms offering accounting softwares.

IT firm can work for 3 major segments of market based on business description:

1. Manufacturing industry
2. Services
3. Retailers

Accounting software is segmented in these different segments anf fulfill day to day needs of recording transactions, performing various other functions from the software. These segments are the most feasible segments as the IT firm can identify its users easily and modify its products according the needs of different segments for different purposes.

This also reduces the cost for the firm to market its product into large number of segments available in the market as the segmentation is cut short to just 3 business descriptions. These descriptions can further be classified inti 2 parts each:

1. Lead user
2. Follower

This segment is created on the basis of cultural variable and it is found that the customers are regular user or just occasional user of the product. This helps in maintaining consistency in the production process of the company and avoids extra costs.

The second example of business segment is of firms offering cheese, which can be used as pizza toping also, to different firms:

These firms can basically be divided into 3 broad categories:

1. Food services firms
2. Manufacturers
3. Supermarkets

Under food services firms, pizza cheese is supplied to 2 different segments i.e. Restaurants and Pizza stores.

Further pizza stores can be classified into 2 i.e. Franchised chains and independent stores.

Under manufacturers, cheese can be supplied for frozen pizzas and packaged ingredients

Under supermarkets, pizza cheese can be classified into 2 categories i.e. existing private labels and no private labels.

These broad segmentation covers each and every aspect of market segment and each corner of market environment. this helps the cheese producing firms to increase their revenue by providing its products to various markets at a single time. This also includes the brand image in the market and helps in creating goodwill for the firm. Customer satisfaction must be the primary gaol for each firm today, which is very well taken care of by this industry.

These different market segments shows that segmentation is done on the basis of requirements of the market and can be as broad till it reaches the entire consumer base in the market environment. Also it is due to segmentation that a company can take care of each small segment efficiently and effectively and can take care of the management too.

The example of Publicaly held company we would like to use here is that of APPLE Inc.

We all are very well aware with the company. It has not been producing smartphones since its origination. It was first dealt only with personal computers, Slowly and gradually, with the help of assessing of market, it started dealing into variou products lines.

It currently deals with Computers, tablets, Phones, Headphones, Musicplayers, etc.

It has been looking for each and every market segment on the basis of demographic, cultural, geographic, psychographic and more. With its ever increasing demand and brand value, it has been created a successful brand for over many years and due to its quality it is still loved by each of its user.