Question

(a) Analyse the advantages to Clarks of market segmentation.
Word Limit: 300 words

INFORMATION GIVEN:   

Clarks have been making and selling shoes for almost 200 years.

Answer 1

Introduction -

About the company- Clarks is a shoe manufacturing company deals in both manufacturing and retailing of its product based in UK. The company was founded by two brothers Cyrus and James Clark in 1825 The company has thousands of brands stores and covers franchise business all over the world and alsp sells its product through third party distribution.

What is Market segmentation - It refers to the process of dividing a market of potential customers into groups and segments based on different characteristics. the segments created are composed of customer s who will respond similarly to marketing strategies and who share traits that includes interst needs or location.

There atre basically four basis of market segmentation

1. Demographic Segmentation
2. Psychographic Segmentation
3. Behavioural Segmentation
4. Geographic Segmentation.

The advantages of market segmentation to clarks-

1. Greater profitability in satisfying the diverse demand of the marketplace.
2. Increases sales by addressing the needs of the target customer.
3. Helps company identify new opportunities and corespondingly allocates resources.
4. Helps the comapny in order to develop new product to meet the need of a particular target market or sub market.
5. Assist the company in developing strategies for the brand and a product categories.
6. Focuses on consumer needs to maintain positive advantage.
7. Useful in providing guidelines for product positioning in tri-media ads and thus selecting media to reach target markets.