Identifying Market Segments for Smart Phones

Part 8: Market Segmentation Identifying the Marketing Segment Sonic needs to advocate the use of a demand-based market segmentation strategy. According to the specifications described in the marketing plan, this strategy is limited to the United States. Using this strategy, for each demand-based market segment, Sonic needs to decide which demographics, lifestyle, and usage behavior these segments are unique, identifyable and profitable. As a startup, Sonic benefits from the choice of 'age' and 'generation' as an important variable in putting the Sonic 1000 PDA into the 'professional' segment of the consumer market.

In order to correctly identify target audiences, it is necessary to segment the market first. This involves breaking your market into recognizable groups or target profiles. The key to segmentation is to select the most relevant variables that are most important to the target customer. More importantly, it is to choose variables (tweets) that can compete and win. Segmentation is important. Because, as the market grows, competition will intensify at the beginning of the new market cycle, even with few participants. However, once a few players explore the market, start acquiring consumers and creating value, the market attracts new players, which in turn will compete for these users and gain market share will do. As new entrants increase, marketing expenses will increase and profitability of each customer will decline.

A number of different market segments have been identified. Intercompany trading (B2B) vendors may divide the market into different types of companies or countries. Meanwhile, intercompany trading (B2C) sellers may divide the market into demographic segments, lifestyle segments, behavioral segments, or other meaningful segments. In market segmentation, it is assumed that different market segments will require different marketing plans, a combination of different estimates, prices, promotions, distribution, or marketing variables. Market subdivision is designed not only to identify the most profitable market segment but also to better understand its needs and purchasing motivation by grasping the overview of key market segments. Insights from segmentation analysis are used to support development and planning of marketing strategies. Many marketers are using the SAP approach; segmentation → positioning → positioning to provide a framework for marketing plan goals