Segmentation and Target Market Paper Essay Example | Topics and Well Written Essays - 1000 words

Segmentation and Target Market Paper - Essay ExampleIt is the process of splitting customers in a market into varied groups (McDonald and Dunbar, 2012). Industries can segment the target market jibe to either large or small consumer numbers, or their geographic location. A target market refers to a group of organizations or people, for which and industry develops and implements strategic plans so as to meet the groups needs. The essay that follows discusses on section and target market deep down the Nike Company. Nike Company is one of the largest athletic sport equipment companies in the world. It was founded by Phil Knight, a former Oregon University coach, and has its headquarter Oregon, Beaverton ( agglomerate and Jones, 2010). It is one of the companies that have had a tremendous egress all over the past years. It has segmented markets in different areas, which include Oregon, New Hampshire, Tennessee, Europe and Japan (Porter and Norton, 2013). Its inclusion of services i n other areas results from the companys growth and increased service need in the areas. Market Segmentation in Nike Company Demographic Characteristics This is dividing a companys service provision according to age, race, gender, and social class, among others (Gitman and McDaniel, 2009). ... Nikes segmentation of business in the various locations aims at meeting the same need for sport wears both to the young and the aged. Income also contri butes to Nikes market segmentation to other areas. For example, Japan is a country whose income is high due to automobile and other industries. However, it might not have the ability to turn wears suitable for sporting as those Nike Company produces. The need for proper sport wears gives Nike to expand its services to Japan. The company also produces wears for all genders where different clothes personify for women and men players. The target market in this market segment is both male and female athletes who exist in the regions around Nike H eadquarters, and those in other countries same(p) Japan. Psychographic Characteristics This involves segregating market in terms of peoples parkland activities, interests, and opinions (Gitman and McDaniel, 2009). Nike Companys headquarter is in a location where people have a common interest in sporting. The founder aimed at providing state-of-the-art athletic shoes that convince customers that they are the best-suited and necessary for sporting and athletic interests in the region (Hill and Jones, 2010). The psychographic segmentation by Nike targets sales from athletes from the Oregon region who have an interest in sports and need comfortable shoes to support them in their sporting activities. As Hill and Jones (2010) point, in the past Nike concentrated on making shoes for basketball and track market segments more than other sports like golf and soccer among others, but later realized that engaging in the making shoes for other sporting activities can bring a lot of profits. Thi s made the