What is segmentation?
Market segmentation is a process that involves the dividing the large market into different groups of consumers who with different needs, characteristics and behaviors for the product offer in the market (Kotler, Adam, Denize and Armstrong).
Marketer has examined and analysis the consumers market segments are based on the geographic, demographic, psychographic and behavioral segmentation. First, the geographic segmentation is to collect and analysis the information of consumer by different geographical units, such as nation, regions, states, municipalities, cities or neighborhoods. Second, the demographic segmentation, which is grouped the consumers based on the variables such as age, sex, family life cycle stage, income, occupation, education, religion and nationality. Third, psychographic which is dividing the market into group according to social class, lifestyle or personality trait. Fourth, the behavior segmentation is grouped the consumer according to the knowledge of the product, their attitude towards it, uses for responses to it (Kotler et al. 2009, 229).
The firm can benefit from a multidimensional approach to segmentation by better understanding the customers' needs and consumer base. Consequently, the consumers have their own preferences and different needs and wants. By segmenting market, firm able to creating separate offers for each segment makes sense and provides customers with a better solution. Take for instance, it allows the firm to design or select the product and service to match the target market value the most. Besides, the firm will gain higher profits. Obviously, it is often difficult to increase prices for the whole market. Different classes of the customers have different disposable income. Therefore, they are different in how sensitive to the price offer by product. By segmenting markets, businesses can raise average prices which able affordable by them in different group and subsequently enhance profits for business. Therefore, the firm will become competitive, market position will improve, and business will become more successful as using the market segmentation in identify the target market.
Target Market Identification
The purpose of the segmentation collage report is to provide an explicit primary target market. In this segmentation report, it shows the information of the target market with similar need, characteristic or behavior to the product offering that are based on the demographic, geographic, psychographic and behavioral trait on the market.
Malaysia is located in Southeastern Asia. The geography of Malaysia is divided into two regions that are Peninsular Malaysia and East Malaysia (Malaysia Geography, 2010). There is different population between two regions. In Peninsular Malaysia, there are almost 80 percents of the total population residue in West Malaysia whereas the other 20 percents of the population lives in East Malaysia. The capital of Malaysia is Kuala Lumpur which residue 1.4 million people (The largest cities in Malaysia, ranked by population 2009). Analyzing on the statistic, the Lady Gaga can make right decision in target the target market in the most density cities of Malaysia. There more people residue in West Malaysia, which describe that there is more demand of the Lady Gaga album.
The primary target market that I have identify for the Lady Gaga album is young female adult which the age range is between 18 to 25 years old. They are campus students who are study in the urban area of Malaysia countries. Majority of them are not have income and their money comes mainly from educational loan and their parents (Mokhlis, S 2009). Some of them use their free week time to have odd time job to earn extra money. Besides, they are on Bachelor stage in the family life cycle. Most of them are have not married and they are more commit to get freedom, recreation and fashion oriented in their life. Despite they do not have stable financial, they willing to use the money what their want especially entertainment items. Therefore, they are ability to purchase the Lady Gaga album, which cost US $14.99 dollar, which equivalent to RM57. Young female adult is a lucrative market since they have long lifetime earnings and will continue to support and purchase the album.
This group of primary target market is mostly to the lower class buyers. The consumers who are still studying, they still have ability to buy the album as the album not cost much. Consumers in this group are probably having an experiencer lifestyle. They are active in both physical and social activities. For example, they like to involve themselves in holiday and shopping activities during the weekend. Due to these activities, they will go to find and search the latest Lady Gaga album as cheaper as they could. Besides, they also enjoy jogging in the park during the weekend. With music of Lady Gaga, they able to listen while are jogging. Furthermore, they are more open-minded and susceptible by the new product. Therefore, the new of the Lady Gaga album will come out will fulfill their need and want. Instead of the new album, they are interest toward the fashion and especially easily influenced by the fashion wear by Lady Gaga. This group will go and buy the different series of album and follow what the Lady Gaga wear in order for them to keep up the trend. Therefore, the Lady Gaga albums satisfy their need.
- eagerness to the technology
Discussion/Rationale of the Target Market Collage
In creating the collage, all the images that I have used to reflect the primary target market I have identify for the Lady Gaga album. Those image and words are represented the target market's country, age, gender, lifestyle and activities their normally carry on. By doing this, the audience will not look confuse while see at my college. The image that I post it in middle of the college is the latest album of the Lady Gaga. Besides, I have attached a Malaysia flag above the Lady Gaga album to show that the primary target I identify is studying in the Malaysia. Furthermore, the image of woman with a book at the corner describes the target market of the Lady Gaga album is at age range between 18-25 years old. They are campus students who are study oriented.
By the way, the image of a group of people drinks the wine in my college describe our target market is like to attend the party activities for purpose of socializing activities. That is the places where the Lady Gaga will broadcast normally. In addition, I also have chosen the image, which a woman is jogging in the park to show that the primary target market is good care about their health. By the way, the image of model that I have attached to show that this group of consumer eagerness to the fashion and want keep up the trend. They are interest toward the fashion and especially easily influenced by the fashion wear by Lady Gaga.
The Personal Digital Assistant (PDA) phone image which I have used to symbolized the primarily target market group has eagerness to technology. They use the technology to access into the internet and download the MP3 for listening. Moreover, the image about people sit at the beach with the word "vacation" attach is describe about the group consumers like to go holiday for the purpose of relaxing in order to cope the high tension of studying environment. Lastly, I have used the word of "shopping" to the image that a woman buys many things, which indicates my primary target market favor to go shopping during the weekends to buy some essential items.
- The largest cities in Malaysia, ranked by population. 2009. http://population.mongabay.com/population/malaysia (accessed April 3, 2010).
- Malaysia Geography. 2010. http://www.asiarooms.com/travel-guide/malaysia/malaysia-overview/malaysia-geography.html (accessed April 6, 2010).
- Mokhlis, S. 2009. An Investigation of Consumer Decision-Making Styles of Young-Adults in Malaysia. http://www.ccsenet.org/journal/index.php/ijbm/article/viewFile/1197/1162n (accessed March 12, 2010).
- Key Data. 2010. Malaysia Country Review 1-4. Business Source Premier, EBSCOhost (accessed April 7, 2010).