Market segmentation free essay sample

Asia-Pacific Athletic Footwear Market Segmentation by Geography on the Basis of Contribution in Percentage (%), 2006-2012 Figure 6: NIKE Global Revenue Contribution of Athletic Apparel and Footwear by Asian Countries in Percentage (%), FY’2012 Figure 7: NIKE Revenue from Athletic Footwear and Apparel in Greater China in USD Million, FY’2008-FY’2012 Figure 8: NIKE Revenue from Athletic Footwear and Apparel in Japan in USD Million, FY’2008-FY’2012. Adidas Group Suppliers by Region in Percentage (%), 2011 Figure 10: Adidas Athletic Footwear Production by Region in Percentage (%), 2011 Figure 11: Adidas Athletic Apparel Production by Region in Percentage (%), 2011 Figure 12: Adidas Group Asia Revenue by Athletic Footwear and Athletic Apparel in USD Million, 2008-2012P Figure 13: Adidas Group Asia-Pacific Revenue by Athletic Footwear, Athletic Apparel and Accessories on the Basis of Contribution in Percentage (%), 2012P Figure 14: Adidas Group Asia-Pacific Revenue by Wholesale, Retail and Other Business on the Basis of Contribution in Percentage (%), 2012P. The contribution of women to the overall sportswear market in China is less than the males because†¦ 21  © This is a licensed product of Ken Research and should not be copied Figure: China Athletic Apparel Market Segmentation by Men, Women and Kids on the Basis of Contribution in Percentage (%), 2012 Men Women Kids Table: China Athletic Apparel Market Segmentation by Men, Women and Kids on the Basis of Revenue in USD Million, 2012 Particulars Revenue ( USD Million) Men Women Kids Total MARKET SHARE OF MAJOR PLAYERS IN CHINA ATHLETIC WEAR MARKET, 2011. 4. INDIVIDUAL MARKETING- The ultimate segmentation leads to â€Å"segments of one â€Å", customized marketing† or â€Å"one to one† FORM OF INDIVIDUAL MARKETING * SELF MARKETING- is a form of individual marketing in which the individual consumer takes on more responsibility for determining which products and brands to buy. PATTERNS OF MARKET SEGMENTATION Three (3) different patterns that can be emerge: 1. Homogeneous Preferences- shows a market where all the consumers have roughly the same preference. 2. Diffused Preferences- showing that the consumers vary greatly in their preferences. . Clustered Preferences- market might reveal distinct preference clusters called natural market segment. MARKET SEGMENTATION PROCEDURE Three (3) step approach used by marketing research firms. 1. Survey stage- the researcher conducts exploration interviews and focus groups to gain insight into consumer motivations, attitudes and behavior. 2. Analysis Stage- researcher analyzes and cluster s the respondents into a specified number of maximally different segments. 3. Profiling stage- Each segment can be given a name based on a dominant distinguishing characteristic. Market Partitioning investigate the hierarchy of attributes that consumers examine in choosing a brand. * Brand Dominant Hierarchy * Nation Dominant Hierarchy BASES FOR SEGMENTING CONSUMER MARKETS 1. Consumer Characteristics- commonly use geographic, demographic and psychographic characteristics. 2. Consumer Responses- looking for benefits sought, use occasions, or brands. MAJOR SEGMENTATION VARIABLES 1. GEOGRAPHIC SEGMENTATION- dividing the market into different geographical units such as nations, states, provinces, cities or neighborhoods. 2. DEMOGRAPHIC SEGMENTATION- consists of dividing the market into groups on the basis of demographic variables such as age, generation, family size, family type, family cycle, gender, income, occupation, education, religion, race and nationality. Demographic Variables * Age and Life cycle Stage * Family Type * Gender * Income * Religion * Social Class 4. PSYCHOGRAPHIC SEGMENTATION- buyers are divided into different groups on the basis of lifestyle and personality. * Lifestyle * Personality 5. BEHAVIORAL SEGMENATTION- buyers are divided into group on the basis of their knowledge of, attitude toward, use of, response to a product. Occasions * Benefits * User status * Usage rate * Loyalty status * Hardcore Loyal- Consumers who buy one brand all the time. * Split Loyal- Consumers who are loyal to two or three brands all the time. * Switchers- Consumers who show no loyalty to any brand. FOUR KINDS OF PRODUCT USERS 1. Nonusers- may be aware of a product but have rejected it. 2. Loyal customer s- are already using and loyal to the product. 3. Switchers- base their purchase decisions on such factors as price or variety seeking. 4. Emergent Consumers- are entering the market for the first time and may be the most valuable group. segmente