This document summarizes several research studies on market segmentation. It discusses how early researchers like Smith defined segmentation and its importance. Later studies explored segmenting based on customer service, behavioral factors, and developing nations. The document finds that while conventional methods like demographics are used, segmenting based on underlying consumer needs provides more effective targeting of products and services. Segmenting by needs allows companies like Lego to better meet the distinct goals of different consumer groups.
This document summarizes several research studies on market segmentation. It discusses how early researchers like Smith defined segmentation and its importance. Later studies explored segmenting based on customer service, behavioral factors, and developing nations. The document finds that while conventional methods like demographics are used, segmenting based on underlying consumer needs provides more effective targeting of products and services. Segmenting by needs allows companies like Lego to better meet the distinct goals of different consumer groups.
This document summarizes several research studies on market segmentation. It discusses how early researchers like Smith defined segmentation and its importance. Later studies explored segmenting based on customer service, behavioral factors, and developing nations. The document finds that while conventional methods like demographics are used, segmenting based on underlying consumer needs provides more effective targeting of products and services. Segmenting by needs allows companies like Lego to better meet the distinct goals of different consumer groups.
This document summarizes several research studies on market segmentation. It discusses how early researchers like Smith defined segmentation and its importance. Later studies explored segmenting based on customer service, behavioral factors, and developing nations. The document finds that while conventional methods like demographics are used, segmenting based on underlying consumer needs provides more effective targeting of products and services. Segmenting by needs allows companies like Lego to better meet the distinct goals of different consumer groups.
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Synopsis
Author Topic Findings
Smith Product This study has provided initial definition of (1956) differentiation and segmentation in 1956. [cited in market segmentation The development of the demand side of the market Sharma & as alternative that represents a rationale and more precise Lambert, marketing strategies. adjustment of products and marketing efforts to 2013] consumer or user requirements Segmentation is tends to bring recognition for several demand schedules, where only one was recognized before This definition has been resulted as a foundation for performing segmentation to target and position the products Sharma & Segmentation of Effective segmentation usually needs that it should Lambert, markets based on be measurable, accessible, substantial and 2013 customer service. homogeneous. Segmentation should have strong association with the competitive strategy of the organization. Segmentation is mainly divided into two differential groups mainly including identifiable/accessible group and the needs/benefits group. The identifiable/accessible approach is based on different variables that are easy to access and identify (e.g: demographic variables). The needs/benefits orientation is based on underlying needs and benefits sought by the buying organization. Mahia Female Consumer Unilever has started multiple segmentation strategy (2014) Beauty Product for the female consumers in Bangladesh. Perception about The consumers of Unilever beauty brand preferred Unilever Bangladesh unique effectiveness of the beauty product. Unilever Ltd. did not segmented the products on geographic segmentation basis. Unilever beauty brand consists of female age, income, education level, religion or nationality. Middle aged females wanted an economic quality products; therefore, they preferred Sunsilk shampoo. Finally from personality perspective, the female might be very ambitious, so she can choose the brand Rexona for her personal grooming. In terms of behavioral segmentation of Unilever beauty brands female mostly persist of quality, convenience, loyalty and attitude Kaushik Reebok: Brand In the target segment of reebok, 7 out of 10 people (2010) Development and indulged in some kind of physical activity as Sales Promotion compared to just 1 in 10 during 1995. Activities for Reebok Bangalore region was segmented on the basis of IPL (Royal popularity among youth, number of bars and Challengers restaurants, and availability of reebok showroom. Bangalore) Campaign After segmentation, contact information was in Bangalore. collected of the Managers of various locations, and phone calls were made to fix up the meeting Ahmed, Income, Social Class It has been evaluated that segmentation, based on Khan & And Consumer consumers perspective plays a major role in the Samad Behaviour: A Focus regulation of process. (2016) On Developing The article has explored segmentation strategies in Nations. developing countries. In accordance with the findings of different researches based on the marketing practices of multinational and local companies in Pakistan, it is found that segmentation is done through conventional methods. Cellular phone industry always segment their customers as pre-paid or post-paid. There are several other consumers needs that can be focused to comply the segmentation process. From the perspective of milk, it is usually divided into loose milk users, packaged milk users, powdered milk users or users of another product such as for drinking, tea making and dessert making. However, this approach risks alienating customers in two different ways, including customers who happen to be in more than one segment get bombarded with multiple uncoordinated offers. Consumers are mostly studied based on demographics, which include income, gender, rural/urban lifestyle, age group etc. However, such distinctions are generally not helpful unless customers needs are not aligned completely with demographic characteristics. Lego, the brick toy manufacturer, has done its segmentation based on the consumers needs. The company mentioned that school children, who focused on building when they play will likely want plain bricks, but those who focus on role-playing usually gravitate toward themed sets. Therefore, smart approaches are needed by the organizations to perform segmentation on the basis of consumers needs.