DESIGN MANUFACTURE MARKET SEGMENTS MARKET SEGMENTS Few products

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DESIGN & MANUFACTURE MARKET SEGMENTS

DESIGN & MANUFACTURE MARKET SEGMENTS

MARKET SEGMENTS Few products, if any, can be said to complete with a global

MARKET SEGMENTS Few products, if any, can be said to complete with a global or mass market. Most companies now practice Target Marketing. Market segmentation will assist with this because it divides the market into distinct groups of buyers with different needs and wants.

SEGMENTS Market segments can be thought of as a group of people who have

SEGMENTS Market segments can be thought of as a group of people who have something in common the will affect there choice of product. These can be generally split into 4 main categories: • Geographic – Countries, Regions, Cities. • Demographic – Age, Sex, Income, Education, Race. • Psychographic – Personality, Lifestyle, Social Class. • Behaviouristic – Purchase Frequency, Usage, Benefits Sought, Brand Loyalty.

SEGMENTS Each of these segments can then be broken down further and products can

SEGMENTS Each of these segments can then be broken down further and products can be targeted at a narrower group of people. For example is we look at age and divide the population into six segments it may look like this: • 5 – 10 years – This age group could be classified as the Fun years • 11 – 17 years – These are often Fashion driven years. • 18 – 25 years – Most people become Independent. • 26 – 35 years – Many people are motivated by there Career. • 36 – 55 years – Often Family becomes a major priority. • 56+ years – This is the time where more Choice is available. It is important to note that just because a product has been designed for any specific group it does not stop other people liking it.

NICHE MARKETING Small firms often find it easier to divide the population into much

NICHE MARKETING Small firms often find it easier to divide the population into much smaller segments e. g. the age bands mentioned earlier could be split further by using other demographic or even behaviouristic factors to restrict the Target Market. This strategy is known as Niche Marketing. A Niche is a small group of consumers that can be defined in specific terms, they usually have distinct hobbles, lifestyle or interests. Consider Teenagers is high school. Generally people in this age group will be motivated by style and appearance, they may find themselves following clothing trends or buying products that allow them to identified as part of a group e. g. Skaters, Goths etc.

PRODUCT TYPE These groups main find certain projects inappropriate or may need a different

PRODUCT TYPE These groups main find certain projects inappropriate or may need a different type of the same product. Consider the four cameras shown, they all take photographic images so can be classified as the same Product Type. However they are all aimed at different market groups whose lifestyle demands a certain type of camera. Each camera can be said to be Fit for its Purpose.

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