Key Word in Marketing Essay Example | Topics and Well Written Essays - 2500 words

Key Word in Marketing - Essay Example into different clusters is widely known as customer segmentation. By the help of customer segmentation organizations can put more focus on their customers and use all the resources for the benefit of those targeted customers. As per Jill Griffins, Cisco Systems, Demographic, psychographic are the main factor of segmentation. Other type of customer segmentation is called value based segmentation. Here customer is been categorized as per the revenue they created to the organization. That also include the cost of services and maintenance and cost of maintain relationship with those customers. Procedure of customer segmentation is given below. a. What data needs to be collected and how to collect the same. b. Collection of data and representation of data. c. Analysis of data. d. Proper coordination between several departments of marketing and customer relationship management is necessary. e. Conclusion and recommendation from the data collected from sources and effective development of t hose recommendations is done here. Explanation of the procedure has to be done in the form of word combination or phrases but it should not be mixed.(Rashidi, 2013) In modern marketing it is one of the main factors of market. In this process, the customers get the most priority and it also helps the organization to maximize its resources to compete in the market. Many researchers claimed that segmentation is a good way to market a product or a service since it does involve a head to head competition with the rivals. Only customer’s satisfaction is the main criteria, so customers get benefitted more out of it. That is one reason why the popularity and acceptance of this method of marketing is increasing widely throughout the globe. Effect of market segmentation is a long term result and organizations get benefited out of it. Market can be divided into four different segments which have been shown in the diagram below: As shown above, the market in divided in four segments, Geo graphic, Demographic, Behavioral and Psychographic (Weinstein, 2013). A. Geographic: In this type of segmentation market is divided geographically, like continents, countries, states, districts, cities and neighborhoods. The geographical difference has a huge effect on the culture of the society. The consumer’s choice, behavior, attitude and characteristic differ as per the changes in the culture of the society. No organization which has business worldwide can treat the whole world market as a single market. For example, let us take Europe and Africa. There is a vast difference in the lifestyle and the economy in both the continents. The choices and the behaviour also changes accordingly. Another situation that can be considered would be the people residing in regions like Greenland or Alaska versus the population in tropical regions like Brazil or Malaysia. The climate is the major difference here. From a marketer’s point of view, Greenland or Alaska is the best place to sell warm clothes, whereas promotion of cotton garments can be advised in the case of Brazil or Malaysia (Burkard, 2011). B. Demographic: The commonly used Demographics in market segmentation include age, sex, education, income, marital status and number of family members. Age: Any person’s age hugely influence their buying behavior. There are several products where strictly age is described and if restricted age customers try to buy, sellers are strictly instructed not to sale them those product. Products like alcohol, certain drugs, several movies which are only for adults etc. Products like toys, where age group is mentioned. In a toy store it is been mentioned like toys for 1 to 2 years old children, 3 to 5 years old children and 6 to 10 years old children. Parents search for the toys as per their