Assume that you are the director of marketing for a company that markets electric bicycles in Vancouver. You feel that if your market is segmented, you will be able to satisfy your customers’ needs more efficiently and effectively. You must first decide what bases to use for segmenting the market.
a) Develop a list of the potential segmentation variables you might use.
b) Include your thoughts on how useful each might be to your marketing strategy.
c) What are your final recommendations for the bases for segmenting the market and include your explanation of why you make that recommendation.?
<span style="font-weight: bolder;">https://www.wired.com/gallery/best-electric-bikes/</span>
<span style="font-weight: bolder;">https://www.bicycling.com/bikes-gear/a22132137/best-electric-bikes/</span>
Assignment will be marked out of 10. It will be evaluated based upon the quality of your research, your identification of appropriate segmenting variables, and the rationale for your recommendation. Professional quality of presentation is expected.
Note: Not less than 400 words
a. List of potential market segmentation variables
· Psychographic segmentation- variable; hobbies, lifestyle
· Demographic segmentation- variable; age, income, gender, education
· Behavioral segmentation- variables; user status, spending habits, purchasing habits, and loyalty
· Geographical segmentation- variables include climate, city, country, and urban or rural areas.
b. Include your thoughts on how useful each might be to your marketing strategy
· Psychographic segmentation – use variables such as hobbies and lifestyle. A person who has an interest in riding bicycles as a hobby is more likely to buy the electric bicycle, also the kind of life the person lives contributes to the products he or she buys.
· Demographic segmentation – here focuses on variables like age, income, gender, etc. Young people are more likely to buy an electric bicycle as compared to the old, I would therefore target young people with an income.
· Behavioral segmentation focuses on the customer's behaviors; the how. These variables include; purchasing habits, spending habits, and loyalty to the brand. In this category, I would target the spending habits of the customer, people who like shopping are more likely to be attracted to buying my product.
· Geographical segmentation- it focuses on variables like country, town, city, rural area. His People in cities are more likely to buy an electric bicycle. In this case, Vancouver is a big city therefore the people there are a target market because there has a place to ride. The climate also matters, during the rainy or misty season it is difficult to ride, I would therefore market this product during the summer season.
c. Market segmentation is a very important part of marketing. To succeed in marketing a product the proper study and analysis of the market is required. Market segmentation has several benefits;
· Market competitiveness- when a company focus on a specific segment it increases its competitiveness. This in return leads to an increase in return on investments.
· Serve customer’s wants and needs in a better way- Segmentation allows companies to satisfy their customer's needs to maximum efficiency. A well-studied market ensures that the products offered to meet all the customer’s needs and wants.
· Greater company focus- when a company has good segmentation, it ensures that it is targeting the right segment with the right product.
· Targeted communication- messages from a company are different for each market segment. Relevant communication is important so that customers understand what the product has to offer and this helps them to make the best choice.