Market Segmentation? It's the "process of dividing the a market into meaningful relatively similar and Identifiable segments or groups"...
Big companies use Market segmentation to help them with their target market's needs and wants. When IBM first started in 1910 all they made were keypunchers and verifiers; Until 1952 when Thomas Watson Jr. became president of IBM & decided it was time to open a market for electronics. Watson, Sr. had repeatedly rejected electronic computers as overpriced and unreliable, except for one-of-a-kind projects such as the IBM SSEC. Thomas Jr. took the company in a new direction, hiring hundreds of electrical engineers he put them to work designing mainframe computers. Many of IBM's technical experts also didn't think computer products were practical, since there were only about a dozen computers in the entire world at the time.
Since 1911 IBM has been dedicated to making "Machines" for "Businesses" from the first hole punchers to the later innovated electronic hole puncher. Now IBM still offers to large companies with Software, Servers and storage; But its also working towards making a 'Smarter Planet' to help the world use its resources more efficiently. Its already begun in Europe.
As you can see Target Markets and Segmenting are like Peanut butter & Jelly, They go perfect together... Cant have one without the other. The target market tells the company who, what their aiming for. In IBM's case it would be based on Social Class. Segmenting allows the company to break it down more specifically into narrower groups like the demographics within that social class.
No comments:
Post a Comment