One of the aspects that have propelled the Nokia Company to its recognizable success is proper market segmentation. Mrket segmentation is of critical importance for any company that intends to succeed in the industry. Mdern business strategies have moved far beyond the old strategy of producing products targeting everybody in the market. Te old marketing theme that “one size fits all” has proved ineffective compelling businesses to undertake a rigorous study of the market and identify a potential niche that they can satisfy effectively. Mrket segmentation has its basis the fact that the entire market is comprised of numerous small segments whose needs and features are different.
Tis paper will focus on describing market segmentation concepts and how the Nokia Company applied these concepts propelling itself to immense success (Hassan & Craft 2012, pMarket segmentation is one of the approaches used by many business farms in the modern day to market their products. Te concept of segmenting the market emerged to replace mass marketing, wich viewed the market as a single unit with similar needs. Cntrary to such approach, mrket segmentation appreciates the fact that the entire market is comprised of smaller segments with each segment exhibiting different features.
Te focus of business farms is to identify one of these segments and understand its needs and expectations critically. Ater understanding the needs of the market segment, te company can then launch products that target the specific segment. Mrketing strategies used to promote such products suit the identified market segments (Hassan, Caft, &Kortam 2003, p Successful market segmentation is comprised of numerous steps. Te first step is the that users of products and their unique needs define the market.
Ater the recognition that the market has a diverse range of users, wo have different needs, bsiness firms focus on dividing the market into segments of the users. Uually, te division has its basis on the defining characteristics of the individuals in each group as well as their exhibited consumer behaviours. Tere is a salient need for rigorous research prior to effecting market segmentation. Tis is because business farms need to identify the consumer behaviour of different groups the market as well as the factors affecting their buying behaviours.
I the specific case of consumer markets,...
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