1.1Definition and concept of marketing
2.The process of segmentation
The Importance of market segmentation
Definition and concept
All people around the world live by selling products, service and ideas.
Marketing is concerned with selling and promotion, however making a sale, i.e. selling is the old type of marketing, in its new definition marketing is about satisfying customer needs, selling is just another aspect of marketing.
F.E. CLARK define it as’ Marketing consists of those efforts which effect transfer in ownership of goods and core for their physical distribution ‘
Stanton and the others say’ ‘marketing is a total system of business activities designed to plan price promoters and distribute wants-satisfying products to target markets to achieve organizational objectives”
Kotler and Armstrong go further to say ”Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others”
We would say Marketing is getting the right goods and services to the people that need them at that particular time ,it is the performance of those business activities which are involved in the flow of ideas, goods and services from their point of production to that of consumption.
The consumers and how they are oriented and given us a new philosophy of doing business known as the ‘marketing concept’, under this we say marketing is much more than a physical process of distributing goods and services.
It talks about the way the business activities are incorporated and guided to supply the goods and services which customers want and in the way the want it
Marketing concept surrounds its definition as the process of discovering and translating consumer wants into products and services and then in turn making it possible for more and more people to enjoy these products.
The importanc of marketing is that businesses forcus is on its consimers behavior and purchasing patterns
WHAT IS MARKET SEGMENTION/WHAT IS THE PROCESS OF MARKET SEGMENTION?
By definition we would say Market segmentation is the division of a market into different groups of customers with similar needs.
Market segmentation was first defined as ‘a condition of growth when core markets have already been developed on a generalized basis to the point where additional promotional expenditures are yielding diminishing returns’ (Smith, 1956).
The purpose of market segmentation is to in other words, to ensure that the elements of the marketing mix, price, distribution, products and promotion, are designed to meet particular needs of different customer groups. However it is not possible to make all needed products for all the people, all of the time. The best that can be aimed for is to provide selected items for selected groups of people. This process allows organizations to focus on specific customer needs, in the most efficient and effective way. A company needs to pick only the best resources for the consumers.
The concept of market segmentation was first proposed as an alternative market development technique in competitive markets, eg, in markets where there are few competitors selling the same product..
. As a result, marketers have opted to design product and service around consumer demand (market segmentation) more than around their own production needs (product differentiation) and they use market research to inform this process,
The basis for segmenting markets depends for the five several ways in which a market can be segmented:
This is the segmentation where the market is divided into groups based on where they live or where the customer’s are located.
Demographic segmentation is the most basic and the most popular type of segmentation. The groups of customers are chosen based on the following criteria:
– Age:. Is she/he a child? A teen? An infant? Is this product appropriate for our costumer’s age?
– Gender: Different sex of human. Is our customer a female or male and the product is made for men or for women or both?
– Life-cycle stage: Young, old, single, married, occupation, number of children.
– Social class: social class is an important one because these groupings seem to give reliable indicators of separate consumer mental state and needs .What is the social status of our consumer? Are they poor or rich? – Life-style:, behaviour, habits, opinions and interests.
For example women dresses is a product that is marketed based on demographic segmentation. The cause for this product is that it is made for women and the marketing mix is made up of groups of women of different ages.
The way in which the customers react
Economic and social characteristics of the customers. Do they find the product good or bad? How do people behave?
. Customers are the people that will help and give suggestions to the suppliers if they have many problems,this can Also help the company to be improved Certainly the essential part of the solution between loyalty and current consumer’s is more serious and important from the banks.
Some of the private effects on consumer’s behaviour is the personality.
• Personality: each human has her/his own and separate way to think and have her/his personality. Is an inclusive idea which contains characteristics and calculate how the person appreciate to his/her to conditions and would be capable to know to sign in own behaviour.
The underlying principle of market segmentation is that the product and services needs of individual customers differ. Market segmentation involves the grouping of customers together with the aim of better satisfying their needs whilst maintaining economies of scale. It consists of three stages and if properly executed should deliver more satisfy customers, , and better designed marketing programmers.
1.Essays, UK. (November 2013). The Concept Of Market Segmentation Marketing Essay.
2. Armstrong,G.&Kotler ,p.2008 principles of marketing
3. Kotler,k. a framework of marketing management
4.internet websites: http://www.themarketingprocessco.com/
5: The Chartered Institute of Bankers, (1996) Strategic Marketing Management, London.