Market Segmentation Essay

1219 Words 5 Pages
In this task i will be using a variety of different products and services to explain how market segmentation works and the different kinds of target group each individual product has.I will be also be looking at how customers and consumers contribute to this process and the parts they play in market segmentation.
In order to explain market segmentation it is important to know who the key parts are in this process;the costumer and the consumer.They are quite similar and are often used interchangeably,but there is a significant difference between the two.Customers are the ones who buy the products whereas consumers are the ones that use them,this can often be the same person,but in some cases the customer will not always be the consumer.For
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Higher profits:Businesses can develop premium segments in which customers accept a higher price level.These segments could feature additional services/extra products,exclusive points of sale and product variations.You could also add personal features to the product to make it more valuable and attractive e.g. engraving names,specific colours,excusive editions.
Opportunities for growth:By segmenting markets,organisations can create their own ,niche’ products and thus attract additional customer groups.A strategy based on customer loyalty attracts new customer with starter products as well as moving regular customers to more premium products and
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their is completely based around the lifestyle of smokers and people who are directly affected by the effects of smoking.

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