Sunday, November 17, 2019
The Role And Importance Of Segmentation Essay Example for Free
The Role And Importance Of Segmentation Essay Success in business depends on whether one is able to sustain him or herself as competition increase. It requires a faint difference to keep a selected business type on the marketing edge. Business research is therefore essential when one wants to analyze the market wants and needs of different segments before determining their position.            In our discussion we will try to analyze how segmentation by life stages in the Baby boom occurred how and how markers needed to tailor make messages meant for a specific age group. We will also be able to evaluate how the baby boomers affected the market niche. By understanding key term â€Å"market segmentation’ and ‘Baby boomer generation’ would be a key step in underlining their role and importance.            By definition, market segmentation is a process of dividing markets into distinct groups of buyers that require different products (Lake, 2008). The groups have to be divided entirely in a homogenous manner. This is the first step required when addressing the need of different customers. The word Baby boomer is an America-English term which describes persons born following the World War II (Brenet, 2006).This is because countries experienced a drastic increase in their population. The birth rates led to the concept term Baby boom. In USA though, different views of the years were documented but many accepted that it was from 1946 to 1964. In Britain he period after the post war 1947 had the highest number of births. This period ended in the 1960. The Irish Republic before its formation, initially had recorded an exodus of people to Britain. Between 1957-80 eras the Irish people choose to have the largest number of children. (Michael, p321). This period of increasing human population recorded increased unemployment economic sluggishness and increased competition to those in the business sector. It was postulated that by 2010 boomers will represent more than two thirds of the 50-plus population. Role and importance                       Marketers had to design a method for addressing the different emerging set groups. For this to succeed marketing segmentation was necessary. The segment must watch the firms marketing capabilities sufficient enough for good profit potential, able to promote effectively to and serve the segment and it should be measurable in purchasing power and size. The target markets in this section involve consumer good and Business produce. The later involves goods or services purchased for use in the production of other goods and services for sales either directly or indirectly. The former are goods or services purchased by a consumer for personal use. The basis of market segmentation according (Brenet, 2006) to involves Demographic segmentation-sex, age, income, occupation, education household size and family set groups Geographical segmentation- markets into similar groups depending on the location. Psychographic segmentation- psychological characteristics, values and life styles. Product based segmentation homogenous groups based on usage rate benefits sought and brand loyalty In that period the market analysis of the baby boomers had become more sophisticated (Baby Boomer in denial over aging, 2004). It has been noted that looking at the baby boomers as a single group fails to recognize their diversity which makes the understanding of differences among the various sector of baby boomers difficult(Onta,2002) The most common way to segment the market is the divide it in two based on birth years. This method yielded two boomer subgroups; this leading-edge boomers, born from 1946 to 19545 and currently 47 to 55 years old and the trailing-edge boomers born between 1955-1964 and currently 36 to 44 years old (Onta, 2002). The important of segmentation in business is that new opportunities increase when targeting specific groups of clients and customers. Those with varying needs are recognized in economic change fortunes were more profound than was realized at this moment of history. Conclusion            Marketing strategies need to be formulated to address the needs of Baby Boomer. The idea to put into consideration is the fact that every year that passes, boomers are aging. As more Boomers enter the 50 plus population, markets trends will have to change and thus marketers need to change their marketing. One of the best things the marketers need to do is to look concisely at the various stages in the life of the boomer and direct their message to that particular phase. This is where understanding of the various segments and different age groups that exist within the larger subset will be helpful. By sounding a message tailored for the entire population would produce disappointing results. By developing products and services tailored specifically to this groups will ensure that marketers sustain themselves in the economy. References ^â€Å"Article Multidimensional Marketing†Available from http://www.milab.dk/dokumentation/public/Artikler%20og%20rapporter/Meredith,%20Geoffrey%20%20Schewe,%20Charles%20-%20Kohorte%20teori.doc(February 8, 2008) ^â€Å"Baby Boomer in denial over aging†CBS NEWS Article from the Associated Press (March 5, 2004) Available from http://www.cbsnews.com/stories/2004/03/05/national/main604287.shtml(February 8, 2008) Coakley. J Gallaghar, M 1999, Politics in the Republic of Ireland. Routledge Tylor Fransis group,(Pg 321) Green, B 2006, Marketing to leading-edge Baby Boomers; Perceptions, principles predictions, paramount market Books, ISBN 0976697351 Lake, L 2008, Market segmentation for the small business. Your Guide to marketing Available from http://marketing.about.com/cs/sbmarketing/a/smbizmrktseg.htm â€Å"Marketers must view Boomers through a New Lens, www.ncoa.org (February 8, 2008)  ‘Onta National Association’ Baby Boomer Market (January 2002), Available from http://www.ntaonlnio.com/staticfiles/car-boomer:pdf (February 8, 2008) Population: Babies Mean Business, Newsweek, Aug 9, 1948 retrieved 2007-01-26 Wellner, AS, â€Å"The Forgotten Baby Boom,†American Demographics,             February 2001, http://www.americandemographics.com (February 8, 2008)
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