Three Types Of Market Segmentation

Marketing is defined by Armstrong and Kotler as “Dividing a market into a distinct group of buyers who have distinct needs, characteristics, or behaviour and who might require separate products or marketing mixes” (Armstrong and Kotler, 2005: 54). Market segmentation is when a vast target market is divided into groups (segments) who share similar needs, requirements and interests. This in turn helps businesses to alter their products and/or services to successfully break into that specific target market. In this assignment I will be discussing the three main types of market segmentation methods; concentrated, differentiated and undifferentiated.
The first method I will be discussing is the concentrated segmentation method; this method is used when companies are wanting to target a single market segment using a single marketing mix. This method carries benefits as it allows companies to focus the efforts of its marketing team on understanding their given market to the best of their abilities. This will give a business a better understanding of what they …show more content…
This method is focuses on an entire market rather than a small segment of it. This segmentation method commonly uses one marketing mix; one product, one price, one placement and a single promotion effort. This helps the business to gain the maximum amount of customers within the target market. Success with this strategy is dependent on whether the marketing team has the ability to effectively broadcast the products or services available to a vast audience. A good example of a business that does this effectively is BMW. BMW don’t focus on a niche market, they focus on a wide range of cars such as 4x4s, hatchbacks, saloons, coupes, estates and supercars. They efficiently and effectively have created, innovated and marketed cars that can be used for a range of things from everyday use to being used for special