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Question 3

Market segmentation is the process of defining a large market into clearly identifiable segments having similar needs, wants, or demand  characteristics. Its objective is to design a marketing mix that precisely matches the expectations  of customers in the targeted segment.

Few companies are big enough to supply the needs of an entire market; most must breakdown the total demand into segments and choose those that the company is best equipped to handle. Four basic factors that affect market segmentation are 1) clear identification of the segment, 2) measurability of its effective size, 3) its accessibility through promotional 

efforts, and 4) its appropriateness to the policies and resources of the company. The four basic market segmentation-strategies are based on a) behavioral b) demographic, c) psychographic, and d) geographical differences. Moreover let us remember that the purpose of segmentation is to find group of consumers who have same desires and needs, what is called benefits. Every product has its several benefits which are important to a particular segment of customers, dividing the market into different products with its benefit. In buying a product one group of customers is interested in taste preferences, when another group chooses healthy products. Each customer group is a potential benefit segment.

Many brands focus on creating one integrate brand. A good example is IPad, it has a lot of functions: the internet, camera, games and different other applications it is very easy to wear, it replaces a laptop. On the other hand, not all customer prefer coca cola, because it contains a lot of calories, diet cola is for people who do not want to have excess weight, this is the product’s benefit. Benefit segmentation is very effective way to segment a market, because it consist of people who want the same satisfaction from a product. Some people prefer product for lower price, having a price benefit, when other people need the best...