Market Segmentation as a Competitive Strategy

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Abstract

The purpose of this study was to understand the importance of market segmentation, and identify market segmentation as a competitive strategy. The research adopted the qualitative research methodology in order to achieve objectives. The data collection method selected for this research was interview. The sample for this research consisted of 10 marketing managers working in different marketing companies in the United Kingdom. The findings of this study have revealed that market segmentation is an important part of a firm's strategic plan. Market segmentation is a competitive strategy that can help a firm gain a competitive advantage in the market. However, in order to ensure the success of market segmentation strategy, market segments should be unique and stable.

Table of Contents

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

1.1Background of the Study1

1.3 Research Objectives3

CHAPTER 2: LITERATURE REVIEW4

2.1 Studies Abroad4

2.1.1 Educating Agents4

2.1.2 Marketing Mix5

2.1.3 Attitude and Behaviour Intention7

2.1.4 Purchase Intentions8

2.1.5 Motivation9

2.2 International Marketing9

2.3 Theories of International Marketing -Market Segmentation10

2.3.1 Cultural Factors10

2.3.2 Political factors11

2.3.3 Geographic location12

2.4 Competitive Advantage12

2.5 Market Segmentation13

2.5.1 Demographic Segmentation15

2.5.2 Geographic Segmentation17

2.5.3 Psychographic segmentation18

2.5.4 Behavioural Segmentation19

2.6 Target Marketing21

2.6.1 Undifferentiated Marketing21

2.6.2 Differentiated Marketing21

2.6.3 Concentrated Marketing22

2.7 Positioning22

Summary of Literature Review23

CHAPTER 3: METHODOLOGY27

3.1 Research Design27

3.2 Data Collection Procedure27

3.2.1 Interviews27

3.2.2 Searching Literature28

3.4 Participants29

3.5 Ethical Considerations29

3.6 Rationale for a Qualitative Study30

3.7 Research Timetable31

CHAPTER 04: FINDINGS AND ANALYSIS32

4.1 Summary of Findings50

CHAPTER 05: CONCLUSION53

5.1 Implications for Managers54

5.2 Recommendations54

BIBLIOGRAPHY56

Table of Figures

FIGURE 1: FACTORS TO BE CONSIDERED IN INTERNATIONAL MARKETING25

FIGURE 2: YEARS OF WORKING EXPERIENCE33

FIGURE 3: AGE OF PARTICIPANTS35

FIGURE 4: GENDER36

FIGURE 5: FACTORS INFLUENCING THE ATTITUDE AND BEHAVIOURAL INTENTIONS OF CUSTOMERS39

FIGURE 6: STRATEGIES USED TO INFLUENCE THE PURCHASE DECISION OF CUSTOMERS41

FIGURE 7: BENEFITS OF MARKET SEGMENTATION46

CHAPTER 1: INTRODUCTION

Background of the Study

Market segmentation is a strategy that involves dividing the target market into different segments. Market segmentation is a competitive strategy that allows firms to achieve successful results. There are different factors that can be used for market segmentation including demographic, psychographic, geographic, behavioural, and others. After market segmentation, the next important step is product positioning. The positioning of a product is developed according to the choices and preferences of customers in a targeted market segment.

The purchase intentions of customers are influenced through several factors. The customer purchase intentions are factors that act as motives behind the buying decision of customers. An understanding of the purchase intentions of customers will allow firms to comprehend how customers can be motivated or persuaded. The understanding of customer purchase intention also helps in measuring the probability of purchasing a product. There is an important association between the purchase intentions and willingness of customers to purchase a product. Therefore, marketers should focus their attention on understanding and analysing the willingness of intentions ...