Market Segmentation

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areas to be segmented quickly and efficiently, however, large cities like London will produce results that are not completely accurate as customers will have different wants and needs because the people that live there will have different backgrounds. This method of segmentation will cause Stardust Fragrances to lose money as they will not be able to successfully promote “Release”.

A more relevant way for Stardust Fragrances to segment the market would be to use demographic segmentation. This method enables Stardust Fragrances to divide potential customers by their social economic groups, age, gender, income, ethnicity group and their education. This is a more beneficial way to segment the market as it is a simple method as data that the government use is easily available in many countries so necessary data can be taken quickly. This is also a relatively cheap method which will help Stardust Fragrances to keep marketing costs quite low. From this method of segmentation, Stardust Fragrances are able to study the data collected in order to identify a gap in the market in order to launch a new product.

Another method of market segmentation is Behavioural segmentation. This is a method where the market is divided by customer loyalty, the degree of usage and the readiness to purchase. This method will not be beneficial to Stardust Fragrances as this method does not take into account the customers’ needs and lifestyles. This method also relies on the use of marketing models and databases in order to carry out market testing. This method will cost Stardust Fragrances and it is also a time consuming process. Behavioural segmentation is not a relevant method for Stardust Fragrances as the product that they are promoting “Release”, as it is a high end product and this method of segmentation does not take into account the customers social class, this product could be advertised to those who cannot afford the products and are more likely to purchase a cheaper alternative.

The last method that Stardust Fragrances are likely to use is Psychographic segmentation as this divides the market by personality, lifestyle, attitudes and class. This method is relevant to Stardust Fragrances as it allows them to identify the customer more accurately and they will be able to address the customers’ needs more efficiently. Psychographic segmentation is beneficial for Stardust Fragrances because the product that they are trying to promote is aimed at higher class men who have a relatively high income. This form of segmentation will enable Stardust Fragrances to identify the appropriate customer audience.

In order to be as successful as possible, Stardust Fragrances will used a focused strategy so they are targeting a particular audience. The method of segmentation that Stardust Fragrances will be using is Psychographic segmentation as this enables them to target their products at customers with similar needs and wants depending on their lifestyle, attitude and class. In order to decide on the method of segmentation, Stardust Fragrances needed to consider the competition and financial implications of this method. As they are promoting a high end product, it is very important that Stardust Fragrances know exactly who their target audience are so they can decide on the design and the price of the products, as well as the scents the perfume should have. This method also enables Stardust Fragrances to gather information quickly and relatively cheaply in order for them to make a profit on their products. By carrying out market segmentation effectively, Stardust Fragrances will be able to easily identify their customers’ needs and wants so they can target their products so that it addresses the needs of the customer leading to an increase in revenue.