Firm idea if my products and services
Market segment will give me a firm idea if my products and services are actually needed and the type of community who would be interested in purchasing what I have to offer. However, my customers are more than a group of people depending on which I hope to sell to, by examining my research results I will be able to filter my one large group into segments depending on similarities between the groups. It will help me to decide where exactly is my profitability income coming from. On planning my segment I would like to collect quantitative data and qualitative data information in order to find out what exactly I’m looking forward
There are several important reasons why businesses should attempt to segment the market it is given in detail below: Customer needs differ. Creating separate offers for each segment makes sense and provides customers with a better solution. Customers have different disposable income. They are, therefore, different in how sensitive they are to price. By segmenting markets, businesses can raise average prices and subsequently enhance profits
Market segmentation can build sales. For example, customers can be encouraged to trade-up after being introduced to a particular product with an introductory, lower-priced product. Customer circumstances change, for example they grow older, form families, change jobs or get promoted, change their buying patterns. By marketing products that appeal to customers at different stages of their life (“life-cycle”), a business can retain customers who might otherwise switch to competing products and brands
Unless my business has a strong or leading share of a market, it is unlikely to be maximising my profitability. Minor brands suffer from lack of scale economies in production. Through careful segmentation and targeting, my business can often achieve competitive production and marketing costs and become the preferred choice of customers and distributors. In other words, segmentation offers the opportunity for smaller firms to compete with bigger ones.
One way of understanding how customers will respond to marketing activities is to divide them into socio-economic groupings based upon on the types of jobs they do. Here is an example of a socio-economic classification.Like this table shows different types of job classification and division of life styles I could attempt to a more appropriate way targeting towards particular groups. A Specific product would be advertised to groups such as B, C1 and C2 because it would be affordable to them so therefore my aim is to target accordingly to the socio-economic grouping table I would aim for upper social class people were its most likely to sell to. Members of each group have similar priorities, which influence their wants and needs.
My business will be located somewhere on a busy road away from my competitors as possible or any other similar products or services. I would like a busy and active environment, from this I am more likely to get customers. My business would be suitable for those people who intend to have lunch breaks in the afternoon were they could pop in and see what offers I have on offer. My business will be open until late evening so for most customers that is an ideal time for them because majority of people seem to finish work at that particulars hours between six to eight o’clock. My business will be located on a busy road were I hope to come across many different types of cultural people, the location of my business will mean that more people from these groups live here because it is affordable to them in a rich estate were they will be able to pay the prices at their standards.
My mobile phone shop will be aimed at all types of age groups. People of different ages frequently have different needs and wants. Ages from teenagers round 15 to adults round 50 is were my main priority in keeping in touch with these types of age groups. The customers that I will be targeting is from different ethnic groups as my mobile phone shop will be selling advanced type of technology, this will mainly attract teenagers because teenagers mostly intend to use mobile phones to socialise or other communication purposes. I most likely to receive customers because nowadays people like to keep in touch with the latest technology or mobile phone available and it doesn’t matter whether the person is Chinese or French in order to communicate they will need a mobile phone because its nowadays best known technology existing.
My analysis supports my results in starting up in business because these types of suggestions and considerations of the overall results show me the exact outcome of what I am expecting from these particular segments. For example the socio-economic grouping table clearly explains what different types of customers are there and therefore I will consider whether which type of customers is most suitable for my type of business. The primary and secondary information that I have gathered up and researched on through questionnaires has given me detail on my potential customers views and opinions on whether certain location, timing, etc should be. This also supports my reasons in setting up in business is how the number of replies that customers take interest in and the number of questions asked by customers.