Showing posts with the label market segmentation

Wine Review: Tisdale’s Merlot Serves its Market Segment Well

Enjoy Tisdale’s California Merlot without having to worry about the cost. Black cherry, mixed berries, and undercurrents of spices this medium bodied wine is still full-flavored. The wine may cost less than $5 a bottle but offers a solid product in their core market segment. You won’t get kudos for your wine sophistication but you can come home with something versatile and drinkable.  Business isn’t always about offering the most expensive product at the highest price. Price sensitive consumers regularly purchase cheaper priced wines with satisfaction. Pricing strategies should consider the consumer segment and the company’s objectives when pricing their products (Duck, 1994). Are you seeking quality or quantity? Companies will use market segmentation to understand and reach their target market. In the case of wines, this could include multiple bands of prices ranging from the price sensitive shopper to the status oriented shopper. If fewer competitors are in the low pri

The Process of Market Segmentation

As most companies cannot compete in an entire market, they usually break down it down into smaller markets. This process of market segmentation affords the opportunity to focus selling products in one, or a few, defined areas. It helps to create focus and effective use of marketing resources to maximize return on investment. Effectiveness is seen as dollars spent and dollars earned.  As companies gain resources and knowledge, they begin to use market research to develop complex and effective marketing strategies. The process of evaluating a market segment helps in developing strategies that further create efficiency in target marketing ( Kutkut, 2012). Target marketing is the chosen focal point of the products/services, advertisements, and related efforts.   As the skill level of managers rises, so does the success of reaching and influencing the target market.  There are generally four levels of market segmentation that include (Finch, 2012): Mass Marketing: The firm