Introduction: Marketing is business and managerial process in that process customers and service provider will be benefited and both groups try to meet their needs and wants. We can also define it as a social process it is because in this process all categories of people are related and always try to communicate each other in commercial way. As we told that marketing is a process. So the whole process is consists of some strategies and tactics and their application. Marketers sell and customers buy their products, so both groups do exchange between them.

Definition of marketing: According to Philip Kotler marketing “satisfying needs and wants through an exchange process” Within these exchange transaction customers will only exchange what they value (money) if they feel that their needs are being fully satisfied; clearly the greater the benefit provided the higher transactional value an organisation can charge.

The Chartered Institute of Marketing define marketing as'The management process responsible for identifying, anticipating and satisfying customer requirements profitably'

From Lecturer slides

P.Tailor of suggests that 'Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer (P.Tailor 7/00)'.

The following figure is an example of marketing and marketing process.

So, Marketing is the wide range of activities involved in making sure that you're continuing to meet the needs of your customers and getting value in return. Marketing is usually focused on one product or service. And to perform this, companies are focusing some steps; target marketing, market positioning, market segmentation etc.

Market segmentation: Market consists of buyer and buyer differs in more way. Customer may differ in their resources, wants, buying habit and attitude and their location. Segmentation means division. Market segmentation is dividing market into smaller segment on the basis of customer's needs and wants their resources, and their environment. According to Gray Armostrong and Philip Kotler, “Market segmentation is dividing a market into distinct groups with distinct needs, characteristics, or behaviours who might require separate products or marketing mixes. (Gray Armstrong and Philip Kotler marketing an introduction).

An example of market segmentation: Procter and Gamble one of the world's premier consumer goods companies. They sell eight brand of different laundry detergent powder in united state named Tide, Cheer, Gain, Era, Dreft, Febreze, and Ivory Snow. They also sell six brands of soap, five brands of dishwashing, and four brands of shampoo. They also have many other products in the market worldwide. The question is why so many brands? The answer is each brand of laundry detergent for a consumer group. There are some consumers who like fabric and cleaning care, some like colour, on the other hand some like fragrance. So if they only do one brand they only can attract one group of customers. For that companies segmenting market to do their business and providing service accurately and potentially.

Advantage of market segmentation:

So marketing is a strategy of identifying customers with similar needs and chooses and meeting these needs and wants with providing services and offers. There are two kinds of advantage of market segmentation. They are:

  1. For marketers and
  2. For customers

1. The advantages of marketing segmentation for the companies/service providers/organizations/marketers are as bellows:

  • It allows companies to be better identifying marketing opportunities.
  • Market segmentation promotes new products entries.
  • It helps services provider to develop an effective marketing mix and other marketing strategies.
  • Market segmentation helps marketers to allocate other marketing resources properly and accurately.
  • It helps the organization to maintain better relationships between customers and them
  • To improve the standard of service
  • Reduces the cost / expenses on many marketing activities
  • increases market share; resulting in higher profits
  • Improve better customer service
  • Helps companies to avoid unprofitable markets
  • It makes products demandable to the customers
  • Helps companies to introduce new products into the market according to customer's desire/ helps to increase the quality of products.
  • It also helps the service providing organization to be best competitors in the market

The advantages of marketing segmentation for the customers are as follows:

  • Customers get their desired product
  • The quality of products become more potential
  • The value of products comes affordable
  • Customers get better service
  • Companies are more aware about the customer service and as they are in competition market position they maintain the supply of products more smoother

Market segmentation variables: Market segmentation is very important for the companies nowadays. To segment the market companies need to look some variables upon which they can segment the market and which can help them to be more potential and more competitors in the market. A market has to segment to try different segmentation variables, alone and in combination. The major segmentation variables are listed below:

  • Geographic
  • Demographic
  • Psychographic
  • Behavioural

All these major variables are combination of some unit/groups of customers upon which companies segment market for their business and maintain quality of services.

Geographic segmentation: Geographic segment mean segment the market into different geographic units. For example country, region, state, counties/district, cities etc. A company may segment the market some geographic areas to operate their business. They may attention some specific area of those areas to provide the better service according consumers needs and wants. It is because needs and wants may vary in different area. Such as America, North America, Western Europe, Asia pacific etc. in those area the needs and are some different. So if any organization operates their business in that area in same way they cannot meet customers' needs. So their strategy should be different for geographic area. And geographic segment depends on city or metro area, the density of population, climate etc.

Demographic segmentation: demographic segmentation divides the market into group base on variable. The groups are like as age, occupation, education, gender, family life cycle, family size, income, religion, race, generation and nationality. It is the common segment among the segments of marketing and the factors of the segment is the popular bases for marketing segmentation. It is because in the segment all categories of people are included and it is easier to measure than other segments.

The common factors of the segments are described below:

  1. Age and life cycle stage: Our habit and approach build up from the very in our age. So consumer needs and wants changing variable is age and their life cycle. Companies nowadays use this segment offering different products or using different strategies for different age groups. An example, the children's products advertising should be colourful and attractive and quality should be proper as it attract children's mind (colour) and their parents (quality).
  2. Gender segmentation: Basically the segmentation used for cosmetics, fashion, and magazine. So when any company going to lunch any product to the market they have to keep in mind that for what groups of customer this product is going to be marketed.
  3. Income segmentation: Customer needs and wants depend on their income. And this segment has been used for a long time by the companies. Some companies target the financial affluent consumers for their business. Such as automobiles, boats and travelling etc. it is because some lower income customer can't afford big amount of many to travel too many country/places at once. Not only this sector but also in the other sector anywhere in the market, any product to supply in the market the marketers should keep in the mind about all categories of customers income.

Psychographic segmentation: psychographic segment divide customers into some different groups. They are:

  • Social class
  • Life style and
  • Personal characteristic

Basically this segment is on the basis of people's lifestyle. For example, student never buys official products and officials they never buy students products.

Behavioural segmentation: Behavioural segment bases on consumers knowledge, attitude, and their attraction to any product. There are some people who often go to market but everyday they never buy. On the hand there are some people who always buy whatever they like. And it depends on their attitude. So, behavioural segment is another best key point for market segmentation.

  • Occasions: Occasions can be one of the important segments for market segmentation and customer can be grouped according to the occasions. Usually people make purchase in many occasions or get idea to buy in several occasions. For example, Valentine's Day, mother's day and father's day, in those days' people buy flower. So marketer s of flower can keep in mind of various occasion for their trade and they can segment the market according to the occasions.

    Conclusion: In conclusion, it can be said that, a marketing plan for one product might be very different than that for another product. Simple cause is segmentation. The world is changing in every moment. So everything is changing with the globe. And so business plans, strategies, targeting, positioning everything should be change for the continue change and competition market.

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