Marketing Segmentation

Jonathan Kko R. Apostol

Socio-economic classification and market segmentation

I strongly agree that market segmentation is more effective than socio-economic classification in launching a new product, why? Because segmenting a market is allowing your marketing or sales division program to focus on the subset of prospects that are "most likely" to acquire your product. If done properly this will help to insure the highest return for your marketing/sales expenditures. Depending on whether you are selling your product to individual consumers or a business and there are also segments that are users and non-users. Dividing the market according to similarities that exist among the various subgroups within the market. The similarities may be common characteristics or common needs and desires. Market segmentation comes about as a result of the observation that all potential users of a product are not alike, and that the same general appeal will not interest all prospects. Therefore, it becomes essential to develop different marketing strategy based on the differences among potential buyers in order to effectively cover the entire market for a particular product.

I also suggest that before launching a product a company or a firm should segment first the target markets before making a product. So that when the said firm or company will launch their product there is a target market and accurately segmented market.

For example , energy drinks this energy drinks has different kinds of content depending on the kind of user they want to target, but this energy drinks has segmented their products not that accurately. Because this drinks has a wider scope of consumers like athletes, drivers and ordinary people who wants to have an extra boost.