MRKT 310 Principles of Marketing
1.Segmentation. Students can use the segmentation characteristics to identify and describe market segments
2.Target Market. Students can identify a usable market segment to be a target market
3.Target-market strategy. Students can determine an appropriate target-market strategy.
4.Positioning. Students can develop and interpret a perceptual map.
Market segmentation has three levels:
- Strategic segmentation- vision, strategic intent and the benefits of the product
- Managerial segmentation- resource allocation, planning and alignment
- Operational segmentation-advertising sales and distribution
Market segmentation involves the following activities:
- Defining the market to be segmented
- Pinpointing the different market segments
- Formation of market segments
- Identifying the appropriate segmentation strategy
Lifestyle and demographic variables are greatly relied on in segmentation. In Samsung’s case, the segmentation entails offering each group a product that compliments their common characteristics. Its segmentation is based on the following:
- Geographic – regions, cities, countries, continents
- Demographic – age, gender, income, occupation, family size
- Psychographic – lifestyle, values, personality
- Behavioral – loyalty, benefits, user status, occasions
Our focus is on psychographic and behavioral segmentation with particular emphasis on age and lifestyle. The college demographic ranges from sixteen to twenty five years and tend to be into following market trends. The lifestyle for the same demographic is characterized by excessive participation in social media and the investment in social events that allow them to interact with one another (Roberts, 2015).
Breaking down the different target markets that Samsung has will bring us to the point where we focus on two distinct groups: college students and business executives.
For the college student, maintaining an upbeat social life both online and in their community is important. The camera features as well as the social media apps that one can access allow them to post pictures from any location making it possible to have a real time social media experience. This makes the brand more appealing to its chosen target market among the younger population ranging between 16 and 25 years.
For the business executive, the need a phone that has a long battery life. This allows them to move around a lot as they interact and make business deals. At the same time, the mobile phone allows them to have access to their emails which transforms it to a mobile office. As a result, they are able to work from any location.
These two target markets constitute the greater percentage of the general population and also make up majority of the working class. As such, they are not only capable of buying the mobile phone but based on the current trends in the economy and the society at large, owning a mobile phone is considered a need. Communication is now considered to be an important aspect of today’s society and indeed the different facets of society such as commerce and education (Roberts, 2015).
Technology has advance to a level where learning and commerce heavily rely on the same (Giachetti, 2013). As such, owning a phone capable of sending and receiving information as well as allowing the user to use it for other functions is important.
Giachetti, C. (2013). Competitive Dynamics in the Mobile Phone Industry. Palgrave Macmillan.
Hamka, F. (2012, February). Smartphone’s Customer Segmentation and Targeting:Defining market segment for different type of mobile service providers. Retrieved from repository.tudelft.nl: https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=14&cad=rja&uact=8&ved=0CGIQFjANahUKEwjw_5ikyO7HAhWBwZQKHc-kBN8&url=http%3A%2F%2Frepository.tudelft.nl%2Fassets%2Fuuid%3Aee5319bf-c266-4fe7-85cf-b4a5754083ad%2FFinal-V1.5_-_Fadly_Hamka1.pdf&usg=
Roberts, J. R. (2015). Mobile Tech Report 2015: Technology news from 2014 and predictions and insights about 2015. Mindwarm Incorporated.
Taylor, R. (2014, March 14). Samsung Galaxy S5: Who is the Target Market? Retrieved from taylordigital.com: http://www.taylordigital.com/samsung-galaxy-s5-target-market/