Market Segmentation

Paul Nicol 22103007
Discuss the advantages and disadvantages of using nonpareil covariant to division a market compared 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 follows segmentation process. Companies use segmentation to decode which group to aim their product or service to. division is crucial within marketing and business as it allows a community to discover which direction to proceed in when it comes to customers require and compulsions. In order to produce a valuable and needed product or service, a company must 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.
Single variable segmentation uses whizz variable to segment their market much(prenominal) as age or sex. Certain companies choose this strategy as they are targeting 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 can 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 state 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: Ordercustompaper.com



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