Market Segmentation, Targeting And Marketing Mix

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The subject of this paper involves market segmentation, targeting and the role of data regarding marketing mix decisions in relation to Woolworths supermarket. It consists of three parts. It will first briefly explain the concept of segmentation and the reasons for Woolworths to segment the market, then address the advantages of market segmentation and how they benefit to Woolworths. Second, it suggests that the suitable types of segmentation variable a marketer of the supermarket can use in order to segment its market effectively. These include demographic, psychographic (lifestyle and socioeconomic status) and behavioural variables. Last, it will discuss how Woolworths utilize the data captured by its Everyday Loyalty card program to tailor its marketing mix for the various segments it identifies. Before getting into the discussion of the Woolworths case study, the paragraph will give explain the concept of market segmentation. According to Philip, Veronica, John and Gary, market segmentation s to divides a market into different groups of consumers with different demands, needs, behaviour or characteristics, who might require separate products or marketing mixes, which based on the fact that companies realize that they cannot appeal to all consumers in those markets so they identify the parts of the market they can serve best and focus their abilities to serve different segments of the market they targeted. (Philip, Veronica, John and Gary, 2005:393) As all the customers are individuals who have different needs and wants and place different emphasis on specific product attributes, each company must identify the parts of market that it can serve best. This is backed by Subhash saying that “not all customers want the same thing. Particularly in well-supplied markets, customers generally prefer products or services that are tailored to their needs. Differences

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