User talk:Dominicbone

The Concept of Market Segmentation
The concept of market segmentation is well established and applied within both academic and business marketing environments. In the early years the ‘Fordist’ marketing approach involving the mass production, distribution and promotion of a product, or service, with one size to fit all effectively satisfied consumer demand by scattering the product offer amongst as many outlets as possible (Kotler, 2003). However, in response to the decreasing effectiveness of mass marketing a publication by Smith (1956) recommended that the market should be viewed as a number of smaller homogenous markets within a larger heterogeneous market, as it is not possible to serve all the customers in the market (Dibb et al., 2002). The concept was coined 'market segmentation' and its role in contemporary marketing strategy is well documented and recommended by leading marketing academics (Keller, 2003; Kotler, 2003).

Market segmentation requires the grouping of heterogeneous customers into homogenous segments (Jenkins and McDonald, 1996; Smith, 1956) in which each group of customers in a market segment will share similar wants and needs to the other customers of the segment (Kotler, 2003). The effective identification of the market segments which a company can effectively serve is fundamental due to the number and diversity of consumers buying requirements (Kotler, 2003). In practice segmentation is recommended to remove the overgeneralisations of mass marketing strategies (Smith, 1956) and is particularly important for the identification of niche markets (Frear, Alguire and Metcalf, 1995). However the validity of marketing segmentation is based on the premise that there are a stable set of preferences within the market (Cahill, 1997).

The benefits of market segmentation include: the creation of more fine tuned products; appropriate pricing for a segment; easier selection of the best distribution and communication channels; providing a clearer picture of competitors (Kotler, 2003). Therefore, correct market segmentation can increase an organisation’s profitability by facilitating the implementation of an effective marketing strategy (Crittenden et al., 2002; Kotler, 2003) by minimising the costs of advertising through targeting the more precise needs and requirements of the smaller homogenous segments. However, marketers must evaluate if the strategy is within the internal capabilities and structure of the organisation (Jenkins and McDonald, 1996) especially when considering a large centralised marketing strategy which may include local or regional differences (Marcus, 1998).

References

Cahill, D. (1997). Target marketing and segmentation: valid and useful tools for marketing. Management Decision. Volume 35. Number 1. pp 10-13.

Crittenden, V. Crittenden, W. and Muzyka, D. (2002). Segmenting the business to business marketplace by product attributes and the decision process. Journal of Strategic Marketing. Volume 10. pp 3-20.

Dibb, S. Stern, P. and Wensley, R. (2002). Marketing knowledge and the value of segmentation. Marketing Intelligence and Planning. Volume 20. Number 2. pp 113-119.

Frear, C. Alguire, M and Metcalf, L. (1995). Country, segmentation on the basis of international purchasing pattern. Journal of Business and Industrial Marketing. Volume 10. Number 2. pp 59-68

Jenkins, M. and McDonald, M. (1997). Market segmentation organisational archetypes and research agendas. European Journal of Marketing. Volume 31. Number 1. pp 17-32.

Keller, K. (2003). Strategic Brand Management: Building, measuring and building brand equity. International Edition. 2nd Edition. Prentice Hall International. New Jersey.

Kotler, (2003). Marketing Management. International Edition. 11th Edition. Pearson Education Prentice Hall. New Jersey.

Smith, W. (1956). Product differentiation and market segmentation as alternative marketing strategies. The Journal of Marketing. July 1956. pp 3-8.

Dominicbone (talk) 01:25, 30 May 2009 (UTC)

Welcome!
Welcome to Wikipedia, Dominicbone! I have been editing Wikipedia for quite some time. I just wanted to say hi and welcome you to Wikipedia! If you have any questions, feel free to leave me a message on or by typing helpme at the bottom of this page. I love to help new users, so don't be afraid to leave a message! I hope you like the place and decide to stay. Here are some pages that you might find helpful: I hope you enjoy editing here and being a Wikipedian! Oh yeah, I almost forgot, when you post on talk pages you should sign your name on talk pages using four tildes ( ~ ); that should automatically produce your username and the date after your post. If you need help, check out Questions, ask me on, or place helpme on your talk page and ask your question there. Again, welcome! Abce2 | Access  Denied  01:23, 30 May 2009 (UTC)
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