Market Segmentation

Paul Nicol 22103007 Discuss the advant festers and disadvantages of using nonp atomic number 18il covariant to division a market comp bed to a more complex multivariable approach. The facts and ideas in the essay are conducted to show the advantages and disadvantages of different strategies within a catchs enlighten sour. Companies use divideation to decode which root word to aim their ingathering or service to. division is decisive within marketing and business as it allows a fellowship to discover which direction to proceed in when it comes to customers require and compulsions. In order to produce a valuable and needed harvest-festival or service, a troupe 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 multivariable segments within a company depending on the companys aims. superstar variable segmentation uses whizz variable to segment their market much(prenominal) as age or sex. Certain companies choose this strategy as they are tar issue forthing 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 class 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 bottom of the inning 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 plead 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: OrderEssay.net

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