The Concept Of Market Segmentation Essay

4563 words - 18 pages

The Concept of Market Segmentation

The assistant to the Manager of the marketing department of Dyson have
been asked to write a report that describes the concept of market
segmentation with suggestion on how Dyson could segment its markets,
an outline of the new product development process along with
suggestions of how Dyson should apply these stages and concluding with
an explanation of how Dyson can perform their marketing control.


This report is fully based on secondary data, primarily from the
course literature but also other internet based sources.


This report will systematically explain the concept of market
segmentation together with examples of how Dyson can segment its
markets. This will be followed by a stage outline of the new product
development process accompanied by my suggestions on how Dyson should
apply these stages. Finally, a descriptive scenario of how Dyson might
control and monitor its performance will follow.

Levels of market segmentation

Mass marketing

A company using this strategy does not segment the market at all; it
offers the same product and uses the same promotion for all consumers.
This method has often been used by companies with mass production of
convenience products or by companies with few or none competitors.
Mass marketing is associated with low promotion costs often reflected
by a low price.

Segment marketing

This involves the process of dividing the market into categories with
different characteristics and needs. By doing this a company can adapt
all their offerings towards the needs of one or more different
segments, in order to better fulfil these needs. The advantages are
that a company can target the segments of which they best can match
the consumer needs or those segments with the least number of

Niche marketing

A niche is basically a sub-segment which often has unique
characteristics and special needs. Niches often search for special
features, for which they are prepared to pay for. This puts companies
using niche marketing under pressure since they have to achieve great
understanding of its customers needs. Since the niches are rather
small, the competition will also be smaller and this can create
opportunities for small companies to serve customer needs that others
have not recognised.


Micromarketing is concerned with specially design their marketing mix
to meet the needs and tastes of particular locations or individuals.
Local marketing aims to meet the needs and wants of a specific
geographical location. This method can be used by both small local
enterprises as well as large corporations. However, for the large
corporations this is often associated with...

Find Another Essay On The Concept of Market Segmentation

Ford Ka: Breaking New Ground in the Small Car Market : Insead case on market segmentation

1751 words - 7 pages ) Demographic Segmentation:Demographic segmentation was a less risky proposition that had proven results in the past and seemed enticing, especially to Ford management. Demographic segmentation would cost less, and the data for the market was readily available. Furthermore, Ford also had years of experience and data to support initiatives using this segmentation.However, this type of segmentation suffers from the same shortcomings as the gender

Concept of the Automobile Essay

646 words - 3 pages The invention of the automobile has been one of the greatest achievements of the 20th century. To mankind, it has been a definitive icon of independence and personal freedom. But with the birth of the automobile now comes the beginning of the concept vehicle.The invention started with the Tin Lizzies in the 1900's. Vehicles in the early days were produced to look the same. These vehicles looked like a box on wheels, similar to a horseless

The Concept of Intelligence

3430 words - 14 pages The Concept of Intelligence ABSTRACT: Gilbert Ryle’s dispositional analysis of the concept of intelligence makes the error of assimilating intelligence to the category of dispositional or semi-dispositional concepts. Far from being a dispositional concept, intelligence is an episodic concept that refers neither to dispositions nor to ‘knowing how,’ but to a fashion or style of proceeding whose significance is adverbial. Being derivative

The Concept of Power

1627 words - 7 pages cooperate with another country’s agenda. Cutting off commerce with a nation would hurt both sides, but if one economy is stronger than the other, it could pressure the other country to be more cooperative. The United States uses its power to influence nations through economic and political means. Such power relies on the fact that the United States has a major role in controlling the free market because of the high numbers of exports. For

The concept of reflexivity

2375 words - 10 pages Seifeldin Soliman Advanced Writing in Disciplines Final DraftUnit Four: Investigating learning transfer: Reflexivity in actionAn Essential ReflectionDear Professor Noonan,The most challenging aspect of this project was understanding the concept of reflexivity. Qualley's passage explaining the concept guided me through what it was exactly. Although I wasn't well acquainted with the concept at first, I quickly realized that there were many

The Concept of Marriage

1041 words - 4 pages Marriage is the bonding between people by social union or legal contract. Marriage is when two people have a wedding ceremony to exchange vows before God and their family. People spend hundreds to thousands of dollars on wedding ceremonies for something they have no clue of what they are getting into. Different cultures have their own concept of marriage. I am going to explore the biblical and social concept of marriage. People enter into

The concept of mimesis

1432 words - 6 pages The idea of mimesis is that a certain medium is a representation of reality. The concept of mimesis extends to art, media, and other texts. Mimesis also creates a sense of false reality, as often the art appears and is can be taken as real as the real world. In Plato’s Allegory of the Cave, the concept of mimesis is explained and through analysis of the novel and several other pieces of work can the implications and effects of mimesis be grasped

The concept of Prejudice

811 words - 3 pages Prejudice can be defined in one of several ways. There is an intellectual as well as a behavioral aspect to the concept of prejudice. Prejudice encompasses negative thoughts and feelings that a person has toward another person. Thoughts and feelings linked to prejudice are generally not based upon the experience the individual, but rather the prevailing thoughts and attitudes of the society within which the individual has been socialized. These

The Concept of Psychology

767 words - 4 pages people are born with a different state of mind to the part they are born with. I personally believe that the sex you are born with should not decide the gender you choose. I feel like people who do things like cross dress should be accepted as they are, but that is not how it is today. People are not that accepting. A lot of people think if it is not “normal” it should not exist. The concept of psychology will always be changing over time. If

The Concept of Delinquency

724 words - 3 pages , and peer relations” (Siegel & Welsh, 2012). How did the concept of concern for children develop? The treatment of children was not always what it is today, history shows that today’s treatment of children has only been around for the past 350 years or so. In the Middle Ages, paternalistic family practices were very popular. This paternalistic family style consisted of the father being the final authority of all family matters and he exercises

The Concept of Lifelong Learning

3149 words - 13 pages The lifelong learning concept has changed over the past years by different scholars such as Jacque Delors and international organisations such as OECD, World Bank and European Commission It is a concept that many countries try import into their educational policies to better their economies. The purpose of this essay is to use literature review to analyse the 20th century term lifelong learning prefiguring the ideas in the 21st century

Similar Essays

Concept Of Market Segmentation, Targeting And Positioning. Market Segmentation Apply On Hotel And Personal Computer.

1986 words - 8 pages Market SegmentationMarket Segmentation means breaking down the total market into self contained and relatively homogeneous subgroups of customers, each possessing its own special requirements and characteristics. This enables the company to modify its output, advertising messages and promotional methods to correspond to the needs of particular segments. Accurate segmentation allows the firm to pinpoint selling opportunities and to tailors it's

The Target Market Segmentation Essay

1038 words - 4 pages Part1After conducting a research among a group of 50 working people the authors of the project have segmented the market and identified the potential customers as follows:Knowing that the income per year of the respondents is not less than $1,500 and in some cases even higher, our service will be directed mainly to them. Prices will be set taking into account the factor that most of the people who are willing to try our service are able to spend

Segmentation Of Cereal Market Within Singapore

2049 words - 8 pages family nuclei. (Statistics Singapore 2006)Breakfast Cereal Market Segmentation and its variablesMarket segmentation can be broken down into several variables; Geographical which consists of regional, city size, density and climate breakdown. The demographical variables include age and life-cycle stage, gender and income. Psychographic segmentation will divide consumers into different groups based on socioeconomic status, lifestyle or personality

What Conditions Do You Feel Must Be Satisfied In Order That Market Segmentation Is Effective? State The Advantages And Limitations Of Market Segmentation With Particular Reference To Consumer Goods.

1873 words - 7 pages on. Among other things, the emergence of the marketing concept and the recognition of consumer needs and wants led marketers to think in terms of target marketing. Target markets are groups of people with similar wants and needs. For most companies, selecting target markets is the first step in the marketing strategy.Target marketing clearly requires market segmentation. Thus Market segmentation involves the analysis of the purchases in the market