It is essential for a company to analyze the potential target market as this helps it in the marketing process. Market segmentation is grouping the target market from a broader audience that the company views as profitable or long term opportunity (Weinstein, 2013). The above means that the company needs to know their market by learning the geographic, demographic and psychographic of the target market.
Types of market segmentation
Segmentation and targeting help the business to understand how the market will respond to some of the situations like purchasing the services of the company. The following is the criteria of for market segmentation.
The above is the most comfortable criteria for market segmentation. This criteria group the target market is based on the geographical boundaries (West, Ford, & Ibrahim, 2015). The above is because customers have different tastes and preferences based on their geographic location. With this understanding, the women on the go can determine where to sell or advertise our products.
This criterion sorts the target market by demographic features such as education, income, family, age, race, gender, occupation, nationality and size. The above is the simplest and the most common method of segmentation. Women on the go can collect information such as the products and the services that the customers buy how they use them and how much they are willing to buy them based on such factors.
This form of segmentation divides the target market by the behavior and decision making patterns of the consumer such as consumption, purchase, lifestyle, and usage. Our younger buyers tend to shop in more trendy clothes than older consumers. This method will help the business to develop a better-targeted approach.
This approach takes into account the psychological element of the behavior of the consumer. It divides the lifestyle of the consumer, values, opinions, interest, and personality. This segmentation helps the business since the business deals with consumers who are busy with their careers and lifestyles. This approach has enabled the company to improve the quality of services.
Segmentation will enable the business to concentrate all their efforts to the significant vital segments, that is, those consumers who have needs that are closely matched by the products of the company. With segmentation, it is easy for the business to communicate directly to the targeted consumers.
The business aims at the busywomen shoppers who want to dress fashionably but has no time to go and shop. We want to satisfy their needs by offering an excellent service at a little inconvenience to them. It is because they are operating in an environment where time and convenience matters to them most. Our target market is working women who are aged 18-40.
Competitive and Industry Analysis
In the past five years, personal shopping industry has grown with 4.1 percent. It has become a 761million dollar industry.An automated analysis is a very crucial tool in the business. It is based on the variations of profit margins of trade. A competitive and industrial analysis is used to understand factors and how they impact the industry (Fleisher & Bensoussan, 2015). Just like any other business, women on the stiff face competition. Our most significant competitors are online stores such as eBay, and aliexpress. They have a new contest that is being perfected in the form of mobile apps and online services. Women on the go are expected to compete with such online sites that have algorithms and predictive analytics. These algorithms extract data on consumer purchasing habit to determine future purchasing patterns. Therefore, the business is expected to lower the cost of services to expand their clientele.
SWOT is an acronym for strengths, weakness, opportunities, and threats. These are internal and external factors that help or hinder a business. A SWOT analysis is very critical to the company as it helps to advertise effectively and target more aggressive customers (Methods, 2015). The following is the SWOT analysis of women on the go.
These are the positive features that set us apart from the competition. Forces are usually controllable because they are internal factors (J.W.Bull, 2016). Women on the Go strengths develop from the personal relationship with the client, our fashion sense and our modern home or office delivery. We have also expanded to products that are hard to find for the customer.
These are professional drawbacks and are usually internal factors. The above means that the business can control them. Our main weakness is a miscommunication with our customers. We are working to improve it.
Opportunities are usually external market factors. The business has less or no control over them. Our target markets, executive-level clients, have busy schedules and most of them work more extended hours. Therefore they have limited time to do their shopping. With the increased pressure in society to dress fashionably, creates a gap for the business to fulfill.
These are usually the opposite of opportunities. They are external factors that will determine whether women on the go will fail or succeed. Due to the economicdownturns, tour clients have reduced their disposable income, and this has cut their budgets on clothes.
Fleisher, C. S., & Bensoussan, B. E. (2015). Business and Competitive Analysis: Effective Application of New and Classic Methods. Upper Saddle River, NJ:: Pearson Education.
J.W.Bull, N. A.-H. (2016). Strengths, Weaknesses, Opportunities, and Threats: A SWOT analysis of the ecosystem services framework. Ecosystem Services, 99-111.
Methods, B. a. (2015). Craig S Fleisher; Babette E Bensoussan. Upper Saddle River, NJ: Pearson Education, 2015.
Weinstein, A. (2013). Handbook of Market Segmentation: Strategic Targeting for Business and Technology Firms, Third Edition. Hoboken: Taylor and Francis.
West, D. C., Ford, J. B., & Ibrahim, E. (2015). Strategic marketing: creating a competitive advantage. Oxford, United Kingdom: Oxford University Press.
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