The previous discussion must have helped you to understand the term ‘market’. On the basis of market definition given earlier, we can reiterate that buyers in the same market seek products for broadly the same function. But different buyers have different evaluative about what constitutes the right choice for performing the function. As a consequence, different offerings will attract different buyers.
For example, all brands of colour television sets will appeal, to some degree, to those in the market for a colour TV, but some brands will appeal to some groups than others. If there were only one brand of colour TV set, there will be no choice for the buyers. But as the market develops, manufacturers seek to cater more closely to some groups than to others, and buyers’ choice widens as a result.
At the most detailed level, buyer is a market in himself, for every buyer’s want is probably distinct in some way. But on the basis of similarities and differences, such unique wants can be grouped into sub- classes. What it means is that wants within a sub-class are more related to each other than wants between sub-classes.
Based on the above discussion, we can now attempt to explain Market Segments and Process of Market Segmentation.
A market segment consists of a large identifiable group within a market. Stanton (1981) defines market segmentation as the process of dividing the total, heterogeneous market for a product into several sub-markets or segments, each of which tends to be homogeneous in all significant aspects.
Akanbi (2002) defines it as the process of dividing the consumers in a given economy into target markets.
Segmentation is a midpoint between mass marketing and individual marketing. Market segmentation is a customer-oriented philosophy. The consumers belonging to a segment are assumed to be quite similar in their wants and needs. Yet they are not identical. Some segment members will want additional features or benefits not included in the offer, while others would gladly give up something that they don’t want very much. For example, in buying a car, some consumers may buy those windows with manual winders, while others may reject them. Again, in a hotel, some may want to find more items in their room(s), such as fan, machine, cable TV, etc. while others may prefer fewer amenities and a lower price As part of the strategy of segmenting its markets, a company will
frequently develop a different variety of the basic product for each segment. However, market segmentation can also be accomplished with no change in the product, but rather with separate programmes, each tailored to a given market segment. A producer of pain relief drugs such as ‘Panadol’ can market the product to the youth market, and a different product for the old-people market. Here, the promotional programmes for the two markets will be different.
For example, all brands of colour television sets will appeal, to some degree, to those in the market for a colour TV, but some brands will appeal to some groups than others. If there were only one brand of colour TV set, there will be no choice for the buyers. But as the market develops, manufacturers seek to cater more closely to some groups than to others, and buyers’ choice widens as a result.
At the most detailed level, buyer is a market in himself, for every buyer’s want is probably distinct in some way. But on the basis of similarities and differences, such unique wants can be grouped into sub- classes. What it means is that wants within a sub-class are more related to each other than wants between sub-classes.
Based on the above discussion, we can now attempt to explain Market Segments and Process of Market Segmentation.
Market Segmentation
Market segments refer to the sub-classes of the market reflecting sub- classes of wants and the process of conceptually distinguishing segments is known as ‘Market Segmentation’.A market segment consists of a large identifiable group within a market. Stanton (1981) defines market segmentation as the process of dividing the total, heterogeneous market for a product into several sub-markets or segments, each of which tends to be homogeneous in all significant aspects.
Akanbi (2002) defines it as the process of dividing the consumers in a given economy into target markets.
Segmentation is a midpoint between mass marketing and individual marketing. Market segmentation is a customer-oriented philosophy. The consumers belonging to a segment are assumed to be quite similar in their wants and needs. Yet they are not identical. Some segment members will want additional features or benefits not included in the offer, while others would gladly give up something that they don’t want very much. For example, in buying a car, some consumers may buy those windows with manual winders, while others may reject them. Again, in a hotel, some may want to find more items in their room(s), such as fan, machine, cable TV, etc. while others may prefer fewer amenities and a lower price As part of the strategy of segmenting its markets, a company will
frequently develop a different variety of the basic product for each segment. However, market segmentation can also be accomplished with no change in the product, but rather with separate programmes, each tailored to a given market segment. A producer of pain relief drugs such as ‘Panadol’ can market the product to the youth market, and a different product for the old-people market. Here, the promotional programmes for the two markets will be different.
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