How is the market for a product such as clothing segmented?(10 marks)
The segmentation, targeting and positioning section of the marketing plan is one of the most important. They usually, through research, uncover similarities in the entire buying market and then segregate them according to trends and similarities, thus forming segments. Once you have your segments, you select one or more of the most profitable or appealing segments to target and thus find your target market. Research and segmentation is vital because without understanding exactly who the market is you will be aiming your product and all communications in the wrong direction. Take Nike for example; They are launching a new running shoe called, for example; Nike Extreme Running shoe. Now in terms of the buying public there are a number of people who buy running shoes but they have a variety of buying behaviours. For example: Nike will find that there are those that buy running shoes as opposed to sneakers. There are those that are not willing to spend excessive money on a sports shoe and will rather replace them annually. There will be those that can't afford to buy Nike and then there are those that want a serious running shoe and are prepared to pay whatever it takes for it. Do you see now why it is important? Nike would have to ensure that the segment they selected for the Extreme Running Shoe, is a fit in terms of affordability, perceived benefits, usage occasions etc.