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Market segmentation is primarily a marketing strategy that deals with categorizing a target market into subcategories of businesses, countries or customers based on their common needs and interests and demographics. Effective market segmentation helps companies to target a wide range of customers. Companies employ three criteria for identifying different market segments such as homogeneity, distinction and reaction.
Market segmentation is an enlargement of the market research process that helps companies find their targeted consumers so that they can personalize their products based on their requirements. It undoubtedly minimizes the risk of getting unnoticed by the consumers and offers the best way to effectively deliver the products to the market.
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Let's dive into market segmentation by considering a case study on Samsung and its market segmentation and its consequences.There are numerous mobile companies worldwide, and there is huge competition among them to acquire a substantial customer base. However, Samsung, the South Korean multinational Conglomerate, maintained its position as one of the leading smartphone manufacturers in the world.
In terms of selling mobile phones, Samsung caters to a wider section of society. The company focused on the middle-class section of society and featured a stronghold in the market. Samsung implemented an empirical technique to analyze social issues and collected necessary data through different questionnaires and logical research practices.
The primary objective of Samsung segmentation was to segment the products based on customer needs and increase the marketing initiatives' efficiency. The company broke down the market into different groups that had clarity about their requirements. Marketing segmentation is a strategic approach that impacts your marketing endeavours to attain exceptional outcomes along with minimized promotional costs.
The first step in choosing a target market ad helps the companies better satisfy the requirements of their potential customers. Market segmentation also helps a company to be more careful about its targeted demographics. Mixed yet effective market segmentation and targeting strategy ensure a company's overall success, and the case was the same for Samsung Electronics.
1988, when the company launched its first mobile phone in the South Korean market, but the segment saw insignificant sales until 1990. However, the change in strategy during the early waves of 2000 offered the company the necessary success. It helped the company to commence in business, and currently, it is one of the leading providers of consumer electronics, especially in the mobile segment.
The company considering its first mobile phone failure employed a market segmentation strategy, which is all about splitting the market into different end-users groups. It helped the company to know what are the similarity and differences between the groups and their psychology and behaviour on mobile phone models.
Samsung Employed the market segmentation strategy based on the geography, demography, and psychographics of the consumers. In terms of geographic market segmentation, the company reached rural areas with Samsung Guru and Urban areas with Galaxy models.
The company implemented its segmentation strategy as per demographics. The youth, middle-class, lower-class workers, and businessmen can also go for a mobile phone of their choice. The company also partnered with different industry leaders to offer exclusive solutions to businesses and also handled their security solutions. So, starting from Samsung Guru to the Samsung Galaxy and other high-end phones met their objectives and rewarded the company due to an effective Samsung demographic segmentation.
On the contrary, Samsung, one of the leading mobile phone manufacturers in the world, caters to customers based on their lifestyles. It launched different and fancy mobile phones with economic touch screens to attract the mass within a range of 1200 to 50,000.
Samsung segmentation included a set of effective strategies in a sequence, and they were the essence of the company's marketing strategy. The method categorized the consumers into different groups based on their identical characteristics along with effective positioning. It is an effective selection process of the marketing mix that is used for the target customer segment.
The company followed different types of positioning such as multi-segment positioning, Multi-segment positioning, imitative positioning and anticipatory positioning.
With multi-segment positioning, the company aims for more than one sector simultaneously by offering a different bundle of products and services. The primary aim of multi-segment positioning is to meet the needs of its consumers with varied financial conditions. For example, the company offers Professional displays with different sizes, screen resolutions, functionalities, and price tags.
On the other hand, the company also implements imitative positioning, which is all about replicating your competitors. Samsung follows its main competitor Apple and imitates in terms of product design, adding key functionalities and marketing strategies.
Finally, Samsung also adapts anticipatory positioning, which is all about manufacturing & developing a set of products that will increase its turnover in the coming future. The company has some products that offer a minimal turnover to the company at current times. Still, the need for such products will escalate and manifold the company's business in the future.
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