Market Segments

This week in Consumer Behavior we have dove into market segmentation. After reading through the course text and an Under Armour case study I have answered the assigned prompt.

In the case study article, what market segments were identified and what segmentation strategies were implemented?

In the Under Armour case study by Mina Saghian and Meghan Murray (2016), the female market segment is identified as a target market for Under Armour, specifically active, athletic females. Before the “I Will What I Want” campaign in 2014, the male market segment was the major focus of the company and it drove the bulk of the companies 2.3 billion in sales (Saghian & Murray, 2016). The segmentation strategies implemented by Under Armour include differentiated segment strategies for the male and female segments. For the more in-depth segment of athletic females, a proper strategy would include a concentrated niche segmentation.

What do you believe are four to five key points to remember when implementing segmentation strategies?

1. Targets should be well defined and understood
If the company can’t identify and understand the segment, I don’t believe the company can be efficient in their marketing.

2. Segments should be measurable
After identifying a market, a business should be able to gather data to measure the size of the group, once a size is determined the group’s attractiveness can be concluded.

3. Segments should be substantial
The attractiveness of a group should be based on ultimately how profitable the group is. If it is a small group with a lot of income that can be used on the marketed product, then the marketing strategy is substantiated. However, typically a group is attractive for being large and having several potential consumers.

4. Segments should be accessible
Segments should be easily reached and communicated with. Companies should be able to efficiently and appropriately open a dialogue with the members of the selected group.

5. Segments should be responsive
Consumers within the segment should respond better with the proposed strategy than with a generic offering. Otherwise, the group would have still been captured for less of an investment.

Identify a new market segment that you have noticed recently (during your own shopping experience online, in a commercial ad, or in a secondary resource such as a magazine) that you believe would be a great market to explore.

Lately, I have seen more and more advertisement directed at black women. I have encountered new business who have created products primarily for this segment, primarily in beauty and care industry.

How might you create a segmentation strategy to reach this new market segment?

         In regards to Under Armour, the company could use black, female athletes in more advertisements. Black men are glorified for their athleticism, but black women are often a neglected topic. For instance, many people can name at least five black, male athletes when put on the spot. However, in my experience, when asked about female athletes there is often a sudden pause. The media is partially to blame because very few black, female athletes are written about or used in advertisements.

          There are very few companies that take the time to market of black women. In general, I see ads that use white women or other ethnicities and black men. Personally, I feel that perhaps some companies feel that since they use both women and black men that somehow they did enough for black women to join in.

During my preparation for this blog, I found the definition of a market segment to be “A subset of consumers who share common needs, characteristics, or behavior,” (Carpenter, Bauer, Erdogan, & Short, 2013). Also, I found, segmentation strategies to include undifferentiated mass marketing segmentation, differentiated segmentation, concentrated niche segmentation, and micro marketing mass customization segmentation (Carpenter et al., 2013).


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