Question

Why do you think market segmentation is important and what impact could it have on a company? Does a successful company need to segment at all? Identify four different products that represent market segmentation based on demographic, geographic, psychological, and behavioral features and discuss how each product’s advertising reflects this segmentation.

Answer 1

Part 1=Marketing segment is important due to the following factors=

• market segmentation helps the organizations to divide the huge market into smaller parts so that the limited resources can be utilized effectively
• With market segmentation, the unsatisfied needs and unique requirements of the customers can be addressed
• Marketers can develop the most effective marketing mix for the given market segment
• It can help the organization to have greater customer satisfaction and loyalty

Market segmentation can result in better customer satisfaction and thus the company can have a better perception in the market and improved brand loyalty. it can also have some other benefits such as greater competitive advantage as the company will be able to meet the latest demands of the customers better than the competitors

Part 2= Whether it is a successful organization or a new organization, each organization has to segment its market to get better customer satisfaction.

Part 3=

demographic= Gillette Razor uses the demographic segmentation as the main focus remains on the males in its advertising as males have the shaving requirements

geographic= McDonalds divide its market depending on the rural and urban areas. the focus remains on the different advertising by highlighting the needs of the two market segment

psychological= Apple iPhone uses the psychological segmentation when it highlights the technology and uniqueness of the product and adds prestige and status to own the brand

behavioral = Volks wagon uses this segmentation when it highlights the benefits of its car such a sunroof , high mileage, low maintenance cost to the customers