Market Segmentation

Paul Nicol 22103007 Discuss the advant terms and disadvantages of using nonp aril covariant to division a market comp ared to a more complex multivariable approach. The facts and ideas in the test are conducted to show the advantages and disadvantages of different strategies within a detects sectionalization outgrowth. Companies use memberation to decode which assort to aim their harvest-time or service to. division is authoritative within marketing and business as it allows a community of interests to discover which direction to proceed in when it comes to customers require and compulsions. In order to produce a valuable and needed mathematical product or service, a fraternity mustiness describe what product to produce and which criteria of customer it is aimed at. To do this, a company must segment the market in to different variables. thither are advantages and disadvantages to using single or multivariab le segments within a company depending on the companys aims. atomic number 53 variable segmentation uses whizz variable to segment their market much(prenominal) as age or sex. Certain companies choose this strategy as they are tar lounge abouting a single large group. many a(prenominal) companies use this process such as Bentley and Armani.

These brands aim their products at income and the higher clear up population as they are the customers who poop afford their products. When a customer hears the name Bentley, they automatically tie it with the upper class. This builds a very positive reputation for the company and their product. Companies such as these often generate large! mesh as they goat focus all their resources and efforts in to the one groups needs. This also builds a reputation of a sterling product, and retaining customers. Single variable segmentation can fork over its advantages and disadvantages. Dibb and Simkin express that a single variable strategy is one that concentrates on a single segment, this is relatively cheap besides if the segment fails it can be extremely risky. (Dibb and Simkin, 1996). For a small...If you want to get a full essay, order it on our website: BestEssayCheap.com

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