Marketing Segmentation Essay

The selection of segmentation method and a doctor’s diagnosis are similar in that they both use a process of elimination to narrow down the field to find the correct product for the customer, or diagnosis for a patient. The doctor begins with a series of questions, and basic testing to â€Å"start segmenting the market†, once the doctor has a better understanding of the possible ailments, the â€Å"product mix† is identified and she is able serve the customer/diagnose the problem. A general doctor begins his assessment with more of a mass marketing effort, meaning there is a huge width and depth of possible diagnosis, but once she is able to narrow down the field she begins to segment. Whereas a specialist, i.e. dermatologist is already working in a segmented market and has the ability to better understand potential and actual customers, from the get. In both cases segmentation helps the doctor to better understand their market and serve their customers well. Describe a products consumer product type and the associated market mix considerations. Clinique even better clinical dark spot remover is a specialty product that I recently purchased. I was willing to purchase this product at a high cost based on the reputation of the brand and the promotional promises of reducing age spots. I immediately thought this product would work because it was Clinique. The marketing mix for this product all fall within the specialty product category. The product is a luxury item, it is more expensive than your average corrective cream, you can only buy it in department stores and the promotion stresses brand status. I would guess this product’s target market is women in their mid-thirties to mid-fifties, above average income, concerned with their health and moderately active. Product – Luxury product Price – Expensive Place – Limited and exclusive, few outlets per market Promotion – Targeted communication, stress brand stratus. â€Å"Price Sensitivity Effects†. 1.Unique Value Effect – A Rolex watch has low price sensitivity and is a product in which the unique attributes of the product are highly valuable. 2.Switching Cost Effect – High costs incurred if switch is made to a different product (low price sensitivity). An example of the switching cost effect with low price sensitivity my bi-annual switch from one Cable Company to their competition. No costs are incurred for me, and the competition typically bends over backwards to get my business. 3.Difficult Comparison Effect – Kodak vs. Nikon would be an example of difficult comparison effect, both brands are reputable and the projects are at a higher price point. I would be more price sensitive when purchasing because they are both great. The brand is known as reputable and comparisons are easy to make, (high price sensitivity) 4.Price-Quality Effect – price used as a signal in judging quality (low). When I purchase soda, I go for the lowest price and look for a sale. 5.Shared-Cost Effect – others will pay for a large portion of the cost of the product. If my company helped to pay for my MBA I would be less sensitive to the pricing, because I wouldn’t have to shoulder the burden of the whole cost.