Market segmentation is the process of dividing a market into prospective buyers who have different needs and characteristics, or behaviours, and who might require separate products or marketing programs. A company is able to step up its marketing and sales efforts and reach out to a whole new market by using gender segmentation. In this case, Nike captured the women’s sports apparel market. There are few type of segmentation used by Nike such as geographic segmentation, demographic segmentation, Psychographic segmentation and behavioural segmentation. Geographic segmentation for Nike’s company divided over the world. Demographic Segmentation is based on income, age, occupation and family members. Demographics is the easy way to get the data
…show more content…
The Nike shoe is probably one of the most recognizable sneaker that Nike currently manufactures. However, Nike shoe has several different target consumer markets. The intact Nike brand is recognized worldwide and they definitely target markets across the globe. But to bring it down on a smaller extent, it will be easier to concentrate on just the Nike sport shoe. Nike targets the middle and higher income peoples group. It is safe to claim that Nike adopts Pareto 20/80 principle(refer to appendices 1). The Nike Sport Shoe targets and target this 20% regardless the segment size and growth as lower income groups will grow bigger and faster than the other income group. To support this claim, Maslow Hierarchy(refer to appendices 2) suggest that human fulfil the physiological need before looking to satisfy their social needs. The company is focused more on product quality, and the price is slightly higher as compare to the market standard. As wearing Nike sport shoe give customers a sense of belonging to the crowd or sense of entitlement, purchasing these products are to fulfil our social needs. Lower income groups will not spend their money on social needs before first fulfilling their physiological needs. However, physiological needs of middle and high income level people are fulfilled. They are willing to spend more to fulfil their social …show more content…
They are offering a variety of choices and types to their products. Such as Nike have different sport shoes for men, women and children in different age group. This allows Nike sport shoe to focus on their market segments using different strategies through different appeals. It is design designed for 10-35 years old with no gender discrimination. The width of the products are including core products are basketball shoes and tennis shoes. In addition there are lots of sports related products, appeals to satisfy customers’
The Nike shoe is probably one of the most recognizable sneaker that Nike currently manufactures. However, Nike shoe has several different target consumer markets. The intact Nike brand is recognized worldwide and they definitely target markets across the globe. But to bring it down on a smaller extent, it will be easier to concentrate on just the Nike sport shoe. Nike targets the middle and higher income peoples group. It is safe to claim that Nike adopts Pareto 20/80 principle(refer to appendices 1). The Nike Sport Shoe targets and target this 20% regardless the segment size and growth as lower income groups will grow bigger and faster than the other income group. To support this claim, Maslow Hierarchy(refer to appendices 2) suggest that human fulfil the physiological need before looking to satisfy their social needs. The company is focused more on product quality, and the price is slightly higher as compare to the market standard. As wearing Nike sport shoe give customers a sense of belonging to the crowd or sense of entitlement, purchasing these products are to fulfil our social needs. Lower income groups will not spend their money on social needs before first fulfilling their physiological needs. However, physiological needs of middle and high income level people are fulfilled. They are willing to spend more to fulfil their social …show more content…
They are offering a variety of choices and types to their products. Such as Nike have different sport shoes for men, women and children in different age group. This allows Nike sport shoe to focus on their market segments using different strategies through different appeals. It is design designed for 10-35 years old with no gender discrimination. The width of the products are including core products are basketball shoes and tennis shoes. In addition there are lots of sports related products, appeals to satisfy customers’