Market Segmentation: A Guide to Decision-Making - Essay Sample

Introduction

Market segmentation refers to the division of a broad customer base or product market into smaller sub-groups known as segments. The segments are divided using certain characteristics that relate to the product, needs, and the consumption behaviors of the consumers. Once identified, the selected segments become market targets and are given special attention. Segmentation techniques consider demographics, behavior, and lifestyles. This paper explores the decision-making process followed when selecting a supplier for selected segments associated with Sharp Corporation: Beyond Japan.

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There are five typical ways of determining marketing segments. According to Ko et al. (2012), demographics, geographic, psychographic, behaviorist, and benefits are some of the general processes used to make decisions regarding products and who supplies them to the company. Every decision made on the kind of supplier also takes into consideration the behaviors, attitudes, usage, social class, loyalty, as well as their willingness to buy the products. Sharp Corporation is a manufacturing company that manufactures and sells electronic devices to customers. The company's approach has always involved research, development, and manufacturing of electronic components in Japan (Brochu et al., n.d.). To supply electronic products to its customers, there needs to be a plan. Before getting into the decision-making process, the selected segments need to be defined.

The first segment includes single individuals, male or female, who have no children. The characteristics of this subgroup have to be considered, and their tendencies or behaviors as far as buying of electronics are concerned. The second segment includes single individuals; they have no partners but have children living with them. The third segment carries individuals who are married but have no children at all in their household. The fourth group contains married individuals who also have children in their household. The final group includes the empty nesters whose children have grown and have left home.

The first process of decision-making is to identify the need for the electronic products that Sharp Corporation sells. The retail outlets connected to the customers are responsible for making the existing customers identify or recognize a problem with their devices, and something that can make the situation better for them (Pryer, 2019). Sharp Corporation has to come out as the only company with the solution to that kind of problem. Afterward, the customers will embark on purchasing the product. The problem should at least be relevant in some way to each segment before the supplier is chosen. Later, the information can then be made to reach the target market through advertisements.

Secondly, once the problem is created, the clients will seek sources of information that they can gather and prove the extent of the problem. In the current technological era, the first means most clients in Japan will reach out to is the internet, followed by other factors, including the Television and later retail stores where they will go and ask questions directly. The sharp company should ensure that such platforms are fed with enough and comprehensive information about their products (Pryer, 2019). Because retail stores are in direct contact with the customers, they can be equipped with relevant information which they can give to customers concerning the product.

An excellent marketing strategy has to check the available alternatives that are at the disposal of the customers. At this time, no consumer can buy a new service or product without looking at the other options. These alternatives can be countered to present the product being promoted as the best of the options available. The chosen suppliers of the products to the people can take this advantage and compare prices and other details (Pryer, 2019). This evaluation technique can aid Sharp Company in avoiding negative reviews for their electronic products.

The next option will be to provide the means or modes of payment that the customers can use in buying the electronic products. The decision-making process takes longer because of the involvement of many people. The supplier also has to have the trust of the clients. The last stage is the implementation of the decision, followed by review and evaluation. An entity like Sharp Corporation can experience particular challenges even in the late phases of decision-making because of those involved. The marketing team and decision-makers should ensure that the process of purchasing products is efficient and straightforward so that they never lose customers along the way (Pryer, 2019). Sharp Corporation can utilize these processes in their decision-making when choosing suppliers of their electronic products to their customer base.

Question 2

The chosen segment for product mix development is 'Married with children. For this segment, Sharp Corporation should manufacture produce at least manufacture TVs of different widths/lines (2), depths and lengths (4), as shown in Table 2 below.

Question 3

The product mix developed for the "Married with children" segment relates to the buyers' behavior in various ways. In Japan, the choices made to buy TV sets are made by women and not the husbands (Brochu et al., n.d.). The likely choice on the size of 44 inches size will be decided by the presence of children in the household. The various technologies of LCD, OLED, Plasma, and CRT are the major competing brands with the buying behavior looking to favor the latest screen technologies. However, the economic variations can allow Sharp Corporation to benefit from the production of the four types.

Question 4

The channel strategy for the chosen segment is the electronic megastores in various parts of Japanese cities and major towns.

Question 5

The target market is likely to choose stores first before online marketing strategies. The customers, families married with children, are likely to frequent such stores when doing shopping (Brochu et al., n.d.). The demands of employment are likely to limit the time this target market spends online, and they are likely to visit stores for direct information and shopping of Televisions.

References

Brochu, J., Ajaltouni, T., Shustack, D., & Kirsh, B. Sharp Corporation [Ebook] (pp. 1-35). McGill University. Retrieved from https://static1.squarespace.com/static/517dd347e4b0d7e92bf57933/t/572290a7f850824ffd05d0ef/1461883074135/Sharp+Final+Powerpoint+%5BAutosaved%5D.pdf

Ko, E., Taylor, C., Sung, H., Lee, J., Wagner, U., Navarro, D., & Wang, F. (2012). Global marketing segmentation usefulness in the sportswear industry. Journal Of Business Research, 65(11), 1565-1575. doi: 10.1016/j.jbusres.2011.02.041

Pryer, J. (2019). 7 Vital Stages of The Consumer Decision Making Process. Retrieved from https://www.communigator.co.uk/blog/consumer-decision-making-process/#information-gathering