Customer Segmentation And Its Importance In Marketing

Key Groups Identified

Every customer is different and unique in his own right. This therefore leads to segmentation. Customer segmentation puts customers into different categories within the market. This is essential given that not all customer may have the same desire for a similar product. It is important therefore for businesses to identify the very important aspects that brings about the division amongst customers as this allows for effective marketing resource allocation. Segmentation helps narrow down to specific target groups. The benefit of customer segmentation is that it helps businesses to stay ahead of competitors (Rundle-Thiele, Dietrich and Kubacki 2017, p. 198). This is due to the fact that with segmentation, businesses can improve specific products in order to meet the targeted customer’s expectation. Segmentation helps divide customers into groups with similar wants. The business organization or company can therefore market to each group differently. This helps to focus on the specific needs a given group of customer at a given point in time.

Progressive cosmopolitans

This is a group of city dwellers, they have the tendency of spending big. They are known to be anti-establishments. This group appreciate change. As a result they embrace multiculturalism. Unlike activist egalitarians, they are less concerned with the redistribution of wealth.

Activist Egalitarians

This is a group of people with very robust, social conscience. This group of people have the belief that the government ought to intervene whenever there is an imbalance so as to bring about equity in the society.  This group of people completely believe in wealth and public investment redistribution. This group of people are socially progressive according to Abeele, Antheunis and Schouten (2014).  These group is keen on protecting the Australian manufacturing sector.

Ambitious saver

This is a group of people majorly composed of the young. They tend to live in the Australian cities as compared to regions. This particular group of people are very careful about how they spend. They have a high esteem for their financial security. They cherish a life that is well organized and predictable. They are very much focused on the future. They are very much career minded. They are less concerned about hot prevailing social and political topics. These group of people tend to back individual freedoms. They are likely to live in the cities.

Prudent traditionalists

This particular group of people also hold the belief that it is the government’s role to make people life better. The government should always intervener to bring a balance within the society (Bo Liu et al 2014, p.451). This group is not impressed by luxurious life and as such are saver. They do not spend so often.

Progressive cosmopolitans

Lavish Mod con

In other words these group is a group of moderate conservatives. This group is a group of big spenders. They like looking good. This group are big spenders (Bianchi, Drennan, and Proud 2014)

Anti-establishment firebrand

This group of people tend to careless about their appearance. They are opposed to free trade. They do not need life to be predictable. They are not likely to go on with politicians.

Disillusioned pessimist

This group of people are more concerned about their money. They are very careful when it comes to money. They tend to be pessimists.

Segmentation and consumption

Purchasing an imported small car like the Austin Mini Cooper is for progressive cosmopolitans. These is a group of people who tend to be anti-establishment. They like to spend their cash and therefore buying an imported car is not a big deal. Lavish Mod con is another group that can easily buy this type of imported car. They care more about their looks and are not afraid to spend their cash. On the other hand, Active egalitarians are the least likely group to buy this type of imported car given that they would like to protect Australia’s manufacturing sector.

Going to the local café for regular coffee and breakfast is for progressive cosmopolitans and Lavish Mod cons. These two groups are heavy spenders. Prudent traditionalists are unlikely to go for go for regular coffee and breakfast from the cafes. This is because this group of people are not frequent spenders.

Joining a gym is for the Lavish Mod con. This group of people are very much concerned about their looks. Their appearance is vital to them. This group are also good spenders. This group can join a gym to improve their looks. Anti-establishment firebrand do not care about their appearance and as such cannot join gyms. Moreover they are not good spenders. These two groups can find it easy to eat at fast food restaurants like Madonald and K.F.C. This group can also shop at big W as well as to regularly play poker machines at local RSL or League’s club on a regular basis.

Prudent traditionalist can buy a beer from the local bottle shop and watching footie at home. This is a very conservative group of people. Ambitious savers also fall in this group. They are careful about how they spend and as such would prefer to buy a bottle of bear and watch a footie at home.

Activist egalitarians

Ordering food online through providers like Menulog, Panda Food among others is for such groups as progressive cosmopolitans and Lavish Mod con. This too groups are heavy spenders (Wijaya et al 2014). On the other hand disillusioned pessimists are not likely to spend by ordering food online.

Installing renewable energy like solar panels can be done by ambitious savers as well as activist egalitarians. All these two groups are careful when it comes to how they use their money. These two groups can also buying home ware products at DIY (Do It Yourself) hardware stores like Bunnings. This are items that eliminate the extra cost which will help in saving money.

Conclusion

Customer segmentation puts customers into different categories within the market. A good understanding of customer’s segmentation is vital as it helps businesses to plan for their marketing campaigns. With the help of marketing segmentation businesses are able to target the right audience for their products (Galasso, Keuper, Brox, and Schiele 2014). By identifying personality traits of the customers in the market, a business stands the best chance of understanding its market. The needs of its clients are therefore taken into consideration and wasteful resources allocation with in the market is done away with (Zanon et al 2014)

Table

Key

Abeele, M.V., Antheunis, M.L. and Schouten, A.P., 2014. Me, myself and my mobile: A segmentation of youths based on their attitudes towards the mobile phone as a status instrument. Telematics and Informatics, 31(2), pp.194-208.

Bianchi, C., Drennan, J. and Proud, B., 2014. Antecedents of consumer brand loyalty in the Australian wine industry. Journal of wine research, 25(2), pp.91-104.

Bo Liu, H., McCarthy, B., Chen, T., Guo, S. and Song, X., 2014. The Chinese wine market: a market segmentation study. Asia Pacific Journal of Marketing and Logistics, 26(3), pp.450-471.

Galasso, F., Keuper, M., Brox, T. and Schiele, B., 2014. Spectral graph reduction for efficient image and streaming video segmentation. In Proceedings of the IEEE Conference on Computer Vision and Pattern Recognition (pp. 49-56).

Kahle, L.R., Gurel-Atay, E., Yu, J.G. and Ring, K., 2017. Aviary Segmentation: Theory and Method. In The Customer is NOT Always Right? Marketing Orientationsin a Dynamic Business World (pp. 657-657). Springer, Cham.

Rundle-Thiele, S., Dietrich, T. and Kubacki, K., 2017. Why We Need Segmentation When Designing Social Marketing Programs. In Segmentation in Social Marketing (pp. 197-214). Springer Singapore.

Wijaya, T.K., Ganu, T., Chakraborty, D., Aberer, K. and Seetharam, D.P., 2014, April. Consumer segmentation and knowledge extraction from smart meter and survey data. In Proceedings of the 2014 SIAM International Conference on Data Mining (pp. 226-234). Society for Industrial and Applied Mathematics.

Zanon, D., Hall, J., Lockstone-Binney, L. and Weber, D., 2014. Development of a whole agency approach to market segmentation in parks. Journal of Leisure Research, 46(5), p.563.

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