Market purchase motivations. Insights from segmentation analysis are

Market segmentation is the process of
dividing a broad consumer or business market, normally
consisting of existing and potential customers, into sub-groups of consumers based on
some type of shared characteristics.

STP Approach

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Segmentation, Targeting and Positioning (STP) is a familiar
strategic approach in modern marketing. It is one of the most commonly applied
marketing models in practice. Market segmentation assumes that different market segments
require different marketing programs – that is, different offers, prices,
promotion, distribution or some combination of marketing variables. Market
segmentation is not only designed to identify the most profitable segments, but
also to develop profiles of key segments in order to better understand their
needs and purchase motivations. Insights from segmentation analysis are
subsequently used to support marketing strategy development and planning. Many
marketers use the S-T-P approach; Segmentation? Targeting
? Positioning to
provide the framework for marketing planning objectives. That is, a market is
segmented, one or more segments are selected for targeting, and products or
services are positioned in a way that resonates with the selected target markets.

STP model is useful when creating marketing communications plans
since it helps marketers to prioritise propositions and then develop and
deliver personalised and relevant messages to engage with different audiences.

This approach is more efficient,
delivering the right mix to the same group of people, rather than a scattergun
approach. This is an audience rather than
product focused approach to communications which helps deliver more relevant
messages to commercially appealing audiences. In addition, STP focuses on
commercial effectiveness which means selecting the most valuable segments for a
business, then developing a marketing mix and product positioning strategy for
each segment.

The needs of each segment are not the same, so
marketing messages should be designed for each segment to emphasise relevant
benefits and features required rather than one single marketing approach for
all customer types..

Segmentation
Types

 

Geographic segmentation

Geographic segmentation divides markets according to geographic
criteria. In practice, markets can be segmented as broadly as continents and as
narrowly as neighbourhoods or postal codes. Typical geographic variables
include:

·        
Country e.g. Brazil,
Canada, China, France, Germany, India, Italy, Japan, UK, US

·        
Region e.g. North,
North-west, Mid-west, South, Central

·        
Population density: e.g. central
business district (CBD), urban, suburban, rural, regional

·        
City or town size: e.g. under 1,000;
1,000–5,000; 5,000–10,000 … 1,000,000–3,000,000 and over 3,000,000

·        
Climatic zone: e.g. Mediterranean,
Temperate, Sub-Tropical, Tropical, Polar

Demographics

Breakdown
by any combination: age, gender, income, education, ethnicity, marital status,
education, household (or business), size, length of residence, type of
residence or even  profession/Occupation.

An example is Air France, who is trying to target young
generation through its new campaign

Psychographic
segmentation

Psychographic segmentation,
which is sometimes called psychometric or lifestyle segmentation,
is measured by studying the activities, interests, and opinions (AIOs) of
customers. It considers how people spend their leisure, and which external
influences they are most responsive to and influenced by. Psychographics is a
very widely used basis for segmentation, because it enables marketers to
identify tightly defined market segments and better understand consumer
motivations for product or brand choices.

Behavioural segmentation

This refers to ‘personality and emotions’ based on
behaviour, linked to purchase choices, including attitudes, lifestyle, hobbies,
risk aversion, personality and leadership traits. Magazines read and TV. While
demographics explain ‘who’ your buyer is, psychographics inform you ‘why’
your customer buys.

Behavioural segmentation divides consumers
into groups according to their observed behaviours. Typical behavioural
variables and their descriptors include

·       
Purchase/Usage Occasion: e.g. regular
occasion, special occasion, festive occasion, gift-giving

·       
Benefit-Sought: e.g. economy,
quality, service level, convenience, access

·       
User Status: e.g. First-time
user, Regular user, Non-user

·       
Usage Rate/Purchase Frequency:
e.g. Light user, heavy user, moderate user

·       
Loyalty Status: e.g. Loyal,
switcher, non-loyal, lapsed

·       
Buyer Readiness: e.g. Unaware, aware,
intention to buy

·       
Attitude to Product or Service:
e.g. Enthusiast, Indifferent, Hostile; Price Conscious, Quality Conscious

·       
Adopter Status: e.g. Early adopter,
late adopter, laggard

SEGMENTATION IN BUSINESS JET

Business
jet is considered on-demand air transportation i.e. transportation of
passengers and cargo by aircraft from one point to another in a manner and at a
time designated by the person exercising operational control comprised of joint
and fractional ownership programs, in-house flight departments, time-share
agreements. Business jet is typically used by executives, sports teams, entrepreneurs
and families.

 

Market
Segmentation for Business jets

1)    Owned by wealthy enough
individual or by charter airlines to provides services to such individuals.

2)    These customers are constantly
moving around hence flexibility in time schedule will be prime factor.

3)    They are generally on tight
schedules hence time factor is very  important for them

4)    Due to their occupation
sometimes confidentiality is of great concern as chartering or owning business
jet will provide them with surrounding to discuss company matters in flight,
which is not possible in normal airline travel.

5)    Safety and security due to
their high profile is other area of concern.

6)    Owning a business jet is
status symbol for them

As clearly seen from above business
jet aircraft model is not for all the masses. This model is specifically for
set of customers or market, where money is not order winning factor. Thus In
business jet marketing, it will be wise to use segmentation marketing technique
instead of marketing to all and wasting company resources. It will be eminent
in such a market to select range of clients who will use the product and
accordingly position and target customers. Business jet market is not for leisure,
tourist, young customers or low profile business class.

Hence in this approach, Demographic, Behavioural
and Psychographic segmentation can be used to separate markets and then only
exclusive people with big incomes, ex celebrities, businessman etc, for whom
time is most important factors should be targeted. Also instead of normal
airlines, it will be best to market product only in charter airlines, in
executive circles. However Airshows, conferences can be platform used by
business jets too to market their product as the crowd is fit for its
marketing. Advertisements or presentation should be designed in such a way to
address executive class issues.

Conclusion

Segmentation is
very important concept in marketing as it helps to save resources and deliver
maximum output. It also helps to know most important concept of marketing that
is need of customers. Hence it is highly recommended to use it widely for any
product. Also, once segmentation is done different techniques can be use to
approach customers in order to attain goal.
Through segmentation, we can identify niches with specific needs, mature
markets to find new customers, deliver more focused and effective marketing
messages.

 

 

x

Hi!
I'm Gerard!

Would you like to get a custom essay? How about receiving a customized one?

Check it out