2nd Bac - Criteria for Market Segmentation

https://www.youtube.com/watch?v=D8oVKRNSWBc&ab_channel=peterluitel 

Unsatisfied demand


We refer to the product that the customers are looking for is not in the market. Or maybe that the products in the market do not fulfill the needs of the customers. Opportunity for a new business.


The market research offers some advantages like the following:


- Provides information for decision making

- Allows to know the origin and location of goods and services

- Enables different tools to work with 

- Defines the characteristics of the clients

- Makes known the changes in likes and preferences of the consumers

Criteria for Market Segmentation

There are a lot of criteria for market segmentation. Below you can see the main criteria:

            

            Demographic Variable: sex, age, social status, house size

            Socioeconomics: level of income, study level, occupation, family type

            Geographic: place, region, country, culture, climate, religion

            Psychological: lifestyle and personality


Practical Example of Market Segmentation

The various C&A brands are a perfect example of Market Segmentation. According to C&A (international fashion warehouse), the company offers ten different clothing brands for ‘every phase in life’. These different brands also have different styles. The following segments are differentiated:

  • The Babyclub intended for the babies and toddlers target group
  • Palomino intended for the target group 2 – 6 years
  • Here + There intended for the target group 7 – 14 years
  • Clockhouse intended for the adolescents target group
  • Rodeo intended for the sporty women target group
  • Canda intended for the men and women with a classical style target group
  • Yessica intended for the women with a casual-chic look target group
  • Your Sixth Sense intended for the women with an exclusively classical style target group
  • Anglo Litrico intended for the modern men with a casual look target group
  • Westbury intended for the men with high demands for fashion and style target group

Thanks to its versatility, C&A has managed to hold its own in a highly competitive fashion market. By segmenting their range, they spread the risk. When, for example, ‘Your Sixth Sense’ is performing less well, they compensate this with the increased turnovers from ‘Clockhouse’.



Homework: Describe orally what are the other types of marketing segmentation and its applicability in a real case scenario.


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