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DM-MICA M1 S2 Summary
DM-MICA M1 S2 Summary
marketing. Segmenting the market, identifying the right target segment and positioning a company within
this market to cater to the target segment, is a crucial process that any product or service needs to go
through in order to attract consumers.
Market Segmentation can be defined as the process of splitting a market into smaller groups with similar
product needs for the purpose of selecting appropriate target markets. It helps in optimising a company’s
marketing program and making best use of its resources. The basis for segmentation of a market are:
A great example to understand this is McDonald’s, which caters to all its market segment in a unique
mann er. It has a ‘Happy Meal’ targeted at kids, has an economically priced range of burgers and wraps for
the teens and tweens on a budget. Lately, they have also come up with the McCafe offering for its
premium customers.
In order to focus on its marketing resources, an organisation needs to define its targeting strategy. After
segmenting the marketing into relevant consumer groups, the next step is to define the segments that the
company wishes to cater to. There are several considerations one needs to make when defining the actual
strategy i.e.
Some of the segments that a brand identifies may not be its potential target. Therefore, a brand needs to
consider the following factors before evaluating a segment: