Essay
Unit 3 P5
- Institution
- Newham Sixth Form College (NEWVIc)
Btec Level 3 Business Unit 3
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In this assignment I will analyse market segmentation and explain the reasons for targetingcustomers and how they are targeted. To achieve this, I will be selecting six different target
groups for the products or services provided by businesses.
Market Segmentation is the process of splitting customers, or potential customers, in a market
into different groups, or segments, within which customers share a similar level of interest in
the same or comparable set of needs, satisfied by a distinct marketing proposition.
McDonalds Happy Meal: This product is targeted at parents, kids and students. The quality,
low price, brand image, size and packaging influence people to purchase the product. The
product is targeted at these consumers because parents and students would buy the product
since it is cheap and affordable. Students have limited cash, so they cannot spend all to meet
their desires, parents as well tend to save their money to utilise their savings in future when
needed. The reason to target these particular customers is that to keep them attracted to the
business, which however does not bring good profit but however helps to maintain reasonable
profit and builds up the good reputation of the business. Pictures and appealing texts are used
to attract customers. McDonalds target people with low income as a result; the organization
aim’s to make the product cheap so that people with low income will afford to buy it. The
market is segmented using demographic (age, occupation, income etc.). The significance of
segmenting the customers is to understand the needs and wants of the customer using the
marketing mix (price, place, product and promotion). The segmentation used is demographic
which includes age, income, occupation and family size etc. The business also uses pictures
and texts to attract kids and young students.
Mercedes Smart Car: This product is targeted at singles or couples with no kids. The size of
this car makes the car attractive for these consumers since due to its size it is easy to park and
is comparatively cheaper than other cars within the company. Another benefit of this car is
that it is fuel efficient and does not require purchaser to pay road tax, making the car cheaper
and affordable in the long run, and hence encourages people to buy the product. The company
targets this group because it is profitable and efficient for couples. Mercedes made a smart
move by producing this car, as there is no car in the market similar to this. The safety,
handling, light weight and extra ordinary mileage of 20+ Kilometres in city is really attractive
to its consumers. The safety of the car is really important as the car contains 4 air bags, Anti-
lock breaking system (ABS). The aim of manufacturing such car for the organization is to
maximize their profits by making sure that the product satisfies’s the needs of the targeted
groups and contains all the essential safety features to maximise the safety of their
consumers. This is accomplished by recording opinions of the targeted group in order to
make the product successful. Photos, videos, posters and magazines help the company to
target their specific customers. The market is segmented using lifestyle (family size, families
with no children or teenagers etc.). The importance of segmenting the market is to meet the
customer’s requirement by producing the right product at the right price with the right
promotion. (4ps).
, Weetabix: This product is targeted at kids, young adults and nuclear families. The popularity
of this product is due to its health benefits and traditional taste. It’s also popular within busy
families who are busy with their jobs and doesn’t have enough time to prepare traditional
breakfast on a daily basis. The product is targeted at this group because these groups due to
their lifestyles require a well balanced diet. The packaging of the product usually attracts
more children who through of the use of pester power encourage purchasing. The product is
highly accessible since it is sold in all (retail-that’s mostly clothes shops) grocery shops
which make it easier for customers to purchase it, some example include, Tesco, Asda,
Morrison and Sainsbury. The busy routine of the families encourages them to buy this
product as well as of its taste and healthier option. The finishing of the product is really
attractive and the consumers can add their own toppings (fruits) to develop their own taste,
the packaging is also really attractive to the kids which often include games and sometimes
toys or stickers as well. Mosaic is used widely to target their customers and families in the
society. The market is segmented using lifestyle; the importance of segmenting the customers
is to understand the needs and want of the customer using the marketing mix (price, place,
product and promotion). The bases of segmentation are demographic which includes age,
family size, income, etc.
Apple IPod Shuffle: It is the smallest and basic IPod, without a screen and is designed and
marketed by apple. It features a fully metal body with a unique design with an integrated belt
that can be clipped anywhere to be used as a hands-free device. In its latest edition (5th
generation) it has storage of 2GB and can hold up to 480 songs. As there is no screen it is
controlled by a voiceover. This product is targeted at students, young adults and those with
low income as well as people who are fond of music. They are targeted to attract those
customers who are interested in an inexpensive, well designed portable music player that
holds good amount of music. In contemporary society, it’s just not about listening to music;
the significations have extended to aesthetics, trends and status. It is perceived by the
customers as the status symbol, a fashion accessory and a matter of reputation. IPod shuffle is
a recognised brand that is cheaper than many of its other products. Top brand product at a low
cost and accessibility, influences customers to purchase the product. The organization
segments the market by using demographic (age, income, etc.) and lifestyle as people who
buy this product are fond of music and sometimes it’s a matter of reputation, So the company
will know who their market target is and who to sell their product to. The base of
segmentation is demographic and lifestyle.
Business to business market
Hewlet Packard computers (HP): the company (HP) selects their business associates
according to the size of the other party. Few examples include: Colleges, Police stations,
hospitals, Call centers etc. This process is highly significant since it helps to develop a
acceptable reputation in the business market. For instance, Newvic Sixth form will buy
approximately 500 computers, to ensure further business HP offers huge discount or more
years of warranty due to their contribution towards the business of HP, since they have not
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