Marketing Management

Market segmentation is the identification of portions of the market that are different from one another. Segmentation allows the firm to better satisfy the needs of its potential customers.

As we all know, the market has a need for segmentation. The concepts behind this is for understanding customers and satisfying their needs better than the competitions. Unfortunately, different customers have different needs and it is impossible to satisfy all customers by treating them all the same.

There are several requirements for market segments. These requirements are based on the different needs of the customers and should be evaluated accordingly.

First of all there are different attributes of the segments that must be measured in order to be identified. All segments must also be reachable through communication and distribution, which determines if they are accessible.

The segments should also be somewhat large in order to justify the resources required to target them. They must also have a unique need which justifies the separate offerings as well as they must respond differently to the many different marketing mixes.

Another requirement is that they should be durable as well as somewhat stable in order to minimize the cost of frequent changes.

In order to have a good market segmentation, it must also have members that are internally homogenous and externally heterogeneous; that is, as similar as possible within the segment, and as different as possible between segments.

The segmentation variables that were used by ReadyMade in determining their Baby Boomers and Gen Nester have targeted consumers that sprang from the assumption that the Gen Nest population was more of the do it yourself-driven than Baby Boomers. CEO Grace Hawthorne came up with her own way to build on t his by creating a strategy that would address the needs of the DIY individuals. Along with her team she addresses several variables that would allow ReadyMade to become more effective and...