Blog 4- Market Segmentation

One marketing topic that we have recently been discussing in our marketing class is market segmentation.  Market segmentation involves aggregating prospective buyers into groups that have common needs and will respond similarly to marketing actions.  This allows companies to take a large target market and break it down into smaller ones and create products that specifically fit that specific target.  Market segmentation is necessary for companies for the reason that is too challenging to target your products to everyone. 

            Market segmentation is usually divided into demographic, geographic, physiographic, and behavioral segmentations.  Demographic segmentation focuses on targeting to different ages, races, and genders.  Geographic segmentation targets people who live in certain locations such as suburban, rural, or urban areas.  Physiographic segmentation focuses on targeting consumers that share similar interests and lifestyles.  Behavioral segmentation works to figure how different consumers perceive their product and how often or little they wish to use that product. 

            There are many examples of companies that use market segmentation.  Most car companies use market segmentation by designing different models of cars to reach different target markets.  Chevrolet is one example of a car company that has many buying options for different market segments.  Chevy has SUV’s that target families in suburban areas, they have sports cars to target upper class consumers, and they also have smaller fuel-efficient models to target middle income consumers.   Chevy pick-up trucks are also very popular and does a good job at targeting consumers who live a more rugged lifestyle and live in geographic location where trucks would be needed to drive through serious weather conditions. 

            In the clothing industry, market segmentation is very important in order to reach multiple target markets.  Demographics are a big focus in segmenting markets.  Most clothing companies sell cloths that are both for men and women as well as children and adults.   Clothing companies also need to consider different lifestyles of consumers.  For example, The North Face is a clothing company that sells a wide variety of winter jackets and outdoor apparel that fit the needs of many different consumers.  North Face has jackets that are designed to withstand extremely cold weather for consumers that enjoy skiing and need a warm jacket.  They also make jackets that are more casual for consumers that are looking for a jacket that will keep them warm but might not necessarily need a heavy ski jacket. 

            Market segmentation is an extremely important part of marketing and is crucial in having a successful product.  It is something that our groups for practice marketing are doing when designing our backpacks.  Our group’s goal is to target university students with an environmentally friendly backpack that will meet there needs in a backpack at an affordable price.  We have also been trying to come up with ways to reach our market segment by figuring out the best places to sell our product as well as how to promote.  Market segmentation will be a very vital concept to have moving forward.