The Role And Importance Of Segmentation Essay Example for Free

The Role And Importance Of Segmentation EssaySuccess in concern depends on whether iodine is able to sustain him or herself as competition increase. It requires a faint difference to keep a selected business type on the commercialiseing edge. Business research is therefore essential when one wants to psychoanalyse the market wants and pauperisms of different segments before determining their position. In our discussion we volition try to die how naval division by life stages in the Baby boom occurred how and how markers needed to tailor make messages meant for a specific age group. We will also be able to evaluate how the baby boomers affected the market niche. By understanding key term market segmentation and Baby boomer generation would be a key step in underlining their role and importance. By definition, market segmentation is a move of dividing markets into distinct groups of buyers that require different products (Lake, 2008). The groups have to be divided intact ly in a homogenous manner. This is the first step required when addressing the need of different customers. The word Baby boomer is an America-English term which describes persons natural following the World War II (Brenet, 2006).This is because countries experienced a drastic increase in their tribe. The brook paces led to the concept term Baby boom. In USA though, different befools of the years were authenticated but many accepted that it was from 1946 to 1964.In Britain he period after the post war 1947 had the highest flake of wears. This period ended in the 1960. The Irish Republic before its formation, initially had recorded an exodus of pile to Britain. Between 1957-80 eras the Irish people choose to have the largest number of children. (Michael, p321). This period of increasing human population recorded increased unemployment economic sluggishness and increased competition to those in the business sector. It was postulated that by 2010 boomers will represent more(pr enominal) than two thirds of the 50-plus population.Role and importance Marketers had to design a method for addressing the different rising set groups. For this to succeed marketing segmentation was necessary. The segment must watch the firms marketing capabilities sufficient sufficiency for good profit potential, able to promote effectively to and serve the segment and it should be measurable in purchasing power and size. The target markets in this section involve consumer good and Business produce. The later involves goods or services purchased for use in the production of other goods and services for sales either directly or indirectly. The former be goods or services purchased by a consumer for personal use.The basis of market segmentation according (Brenet, 2006) to involvesDemographic segmentation-sex, age, income, occupation, education household size and family set groupsGeographical segmentation- markets into similar groups depending on the location.Psychographic segment ation- psychological characteristics, values and life styles.Product based segmentation homogenous groups based on usage rate benefits sought and brand loyaltyIn that period the market analysis of the baby boomers had become more sophisticated (Baby baby boomer in denial over aging, 2004). It has been noted that looking at the baby boomers as a single group fails to recognize their diversity which makes the understanding of differences among the various sector of baby boomers difficult(Onta,2002)The close common way to segment the market is the divide it in two based on birth years. This method yielded two boomer subgroups this leading-edge boomers, born(p) from 1946 to 19545 and currently 47 to 55 years old and the trailing-edge boomers born between 1955-1964 and currently 36 to 44 years old (Onta, 2002). The important of segmentation in business is that new opportunities increase when targeting specific groups of clients and customers. Those with varying needs are recognized in economic variety fortunes were more profound than was realized at this moment of history.Conclusion Marketing strategies need to be hypothecate to address the needs of Baby Boomer. The idea to put into consideration is the fact that every year that passes, boomers are aging. As more Boomers enter the 50 plus population, markets trends will have to change and thus marketers need to change their marketing. One of the best things the marketers need to do is to look concisely at the various stages in the life of the boomer and direct their message to that particular phase. This is where understanding of the various segments and different age groups that comprise within the larger subset will be helpful. By sounding a message tailored for the entire population would produce disappointing results. By developing products and services tailored specifically to this groups will encounter that marketers sustain themselves in the economy.ReferencesArticle Multidimensional Marketing Availab le from http//www.milab.dk/dokumentation/public/Artikler%20og%20rapporter/Meredith,%20Geoffrey%20%20Schewe,%20Charles%20-%20Kohorte%20teori.doc(February 8, 2008)Baby Boomer in denial over aging CBS NEWS Article from the Associated Press (March 5, 2004) Available from http//www.cbsnews.com/stories/2004/03/05/national/main604287.shtml(February 8, 2008)Coakley. J Gallaghar, M 1999, Politics in the Republic of Ireland. Routledge Tylor Fransis group,(Pg 321)Green, B 2006, Marketing to leading-edge Baby Boomers Perceptions, principles predictions, paramount market Books, ISBN 0976697351Lake, L 2008, Market segmentation for the small business. Your Guide to marketing Available from http//marketing.about.com/cs/sbmarketing/a/smbizmrktseg.htmMarketers must view Boomers through a New Lens, www.ncoa.org (February 8, 2008)Onta National Association Baby Boomer Market (January 2002), Available from http//www.ntaonlnio.com/staticfiles/car-boomerpdf (February 8, 2008) people Babies Mean Business , Newsweek, Aug 9, 1948 retrieved 2007-01-26Wellner, AS, The Forgotten Baby Boom, American Demographics, February 2001, http//www.americandemographics.com (February 8, 2008)