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

Segmentation and nates Market Paper - Essay ExampleIt is the process of splitting customers in a market into antithetical groups (McDonald and Dunbar, 2012). Industries can segment the target market according 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 indispensablenesss. The essay that follows discusses on segmentation and target market inside the Nike Company. Nike Company is virtuoso 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 encounter had a tremendous ingathering over the past years. It has segmented markets in different areas, which accommodate Oregon, New Hampshire, Tennessee, Europe and Japan (Porter and No rton, 2013). Its inclusion of services in another(prenominal) 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 contributes 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 produce 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 be for women and men players. The target market in this market segment is both male and femal e athletes who follow in the regions around Nike Headquarters, and those in other countries like Japan. Psychographic Characteristics This involves segregating market in terms of peoples viridity 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 required 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 fashioning shoes for basketball and track market segments more than than other sports like golf and soccer among others, but later realized that engaging in the making shoes fo r other sporting activities can bring a lot of profits. This made the