H & M Report

Market Segmentation

Market Segmentation

Introduction

The aim of this report is to provide information regarding the characteristics of market segment as described by Yoram Wind in 1978. It would provide the understanding of segmentation business success. It would also include reasons that contribute to the failure of organizations, in both consumer and industrial markets, in successfully segmenting markets. It would also recommendations about steps that an organization should take in order to minimize the risk of making mistakes in segmenting market.

The company that has been chosen for the report is 3M Company. The report would involve the response of the manager of the company who has just returned from a lecture of marketing regarding the customer segment.

Discussion

The company is operating in the markets of transportation and industrial, display and graphics, health care, security, safety and protection, office and consumer, communications and electro. The company is operating in Europe, Asia, Africa, Middle East and Asia Pacific. Headquarter of the company is in Saint Paul and is currently having 84, 198 employees. The company came into being in 1902 as the Minnesota Mining and Manufacturing Company (Marketline, 2012, pp.1-2). The company has been successful in segmenting market in order to respond to the increasing needs of the customers and consumers around the globe. The effectiveness in segmenting marketing has allowed the organization to record total revenue of $29, 611 million in the year of 2011. The company has segmented it products into 6 business segments which has shown growth in profits from many years.

The market segmentation is a concept based on three different propositions. Firstly, there are different kinds of consumers around the globe. Their attitudes and behaviours towards buying any particular goods and services differ. Segmenting the market enables an organization to analyze different consumers that exist around the globe. Secondly, the demand for the market of different consumers differs greatly. There are various kinds of consumers that demand products and services. Therefore, it becomes important for an organization to effectively identify the differences in market demand and develop and implement strategies that are most suitable for different market demand. Thirdly, an organization may isolate groups of consumers within the overall market (Harket and Graham, 1998, pp. 161).

Organizations need to analyze different segments of market and respond to them accordingly. There are tremendous benefits that an organization can enjoy by effectively and efficiently segmenting different consumers group. It would enable the organization to analyze the needs and demands of different segments market. It would also enable an organization to develop and implement marketing strategies that best suit the segments. It would become easy for an organization to respond to the growing needs and demands of customers by breaking them into smaller segments. Segmenting markets would assist an organization effectively and efficiently respond to the growing and changing demands of consumers (Finley and Galloway, 2001, pp.160).

Consumers are important for any kind of profit making organization around the world. The organization that fails to satisfy the needs and wants of ...