Market segmentation

Effective marketing takes into account different segmentation variables when dividing the market into
target segments (Reed, 2006, p. 43). There may be many segments depending on the nature of the
market and the products on offer. However, the most common variables include benefit variable and
demographic variable.

Benefit variable deal with the needs and benefits expected by customers. Demographic variables on the
other hand define the characteristics of the target customers and potential clients. Variables like gender,
age and occupation are critical in market segmentation.

Sony and Samsung have numerous products that are suited for different markets based on their use and
need. In terms of the market segments the products under discussion from both companies are targeted
at the same markets. The Sony Brava KDL-40W4000 LCD TV and the Samsung LE40A656 LCD TV are both
targeted at middle class and high end customers in the regions where the two companies operate.

Target Markets

Both the Sony Brava KDL-40W4000 LCD TV and the Samsung LE40A656 LCD TV are targeted at the upper
middle class and upper class signets of the population in the areas where the two companies operate.
Also targeted, are working male and female consumers, men and women in their late twenties and
seniors. They above groups are the only ones likely to afford the prices imposed on the products. The
above characteristics fit into the variables that were discussed earlier as shown in the table below.

Variable Characteristics

Demographic Males (mostly), seniors, high end families, young people from their 20’s,

Benefits High spending, varied in taste, stable income

Targeting strategy

Targeting strategies can be classified as differentiated, undifferentiated and concentrated (Palley, 2000,
p. 54). Differentiated targeting strategies include different promotional messages each conveying
different product benefits. Undifferentiated targeting strategies on the other hand involve sending of
one promotional message to about the benefits of the product to the market.
Concentrated targeting strategies on their part carry messages that communicate product benefits to
specific segments of the consumer base. Many businesses choose a target strategy based on the
benefits they expect from the market, the market segment they are tying to reach and the costs of the
passing the message to the target market.

Sony Corp. uses all the above targeting strategies because compared to Samsung; it has curved clear
market niches. Samsung on the other hand mostly uses differentiated targeting because its marketing
mostly targets the mass market. Samsung is yet to carve its niche market hence the need for
concentrated targeting is low.

Positioning strategy

In the market, different companies use different positioning strategies. They include, price and quality,
use or application of the product, product class, competitors (McDonald & Wilson, 2011, p. 90).

In product attributes, business use one or few of the products attributes through which they popularise
it to the consumers. In pricing and quality, companies use varying prices and qualities to attract different
classes of consumers. The quality can be superior or lower quality both of which will cost differently.

The use or application on the other is used when companies position their products to suit the habits
and chores that the target population engages in. in competitor positioning, some companies engage in
direct and purposeful comparison of their products to similar ones in the market to gain entry.

Samsung has engaged in the pricing positioning where its products including the Samsung LE40A656 LCD
TV are low costing compared to similar products from Sony. Both firms have however perfected the
quality positioning strategy where every time they emphasise every little modification that adds to the
comfort that consumers are interested

MARKET SEGMENTATION

Sony aims on psychographic and demographic variables.The psychographic segmentation is one which
uses people lifestyle, activities, interests, personal attributes and motives. Also psychographic variable
can tell about consumer buying behavior. The right decision is made according to intuition and marketer
experience.

Sony Corporation that their targeting strategy is target a different product and marketing programme at
each of a number of segments. It is because Sony Corporation sells products which includes memory
devices, video games systems, cameras, computers, televisions DVD payers and phones. But if we are
talking about my product Sony phone there targeting strategy more will be offering one product and
marketing programme to a number of segments. But Sony phones are divided into different kinds of
phones and tagret on different type of costumers.

Market segmentation criteria used for Sony phones product is multivariable segmentation. This
segmentation using more than one characteristic to divide a total market. For example, costumers want
one brand of company, but with the different characteristics. Some customers want phone with good
camera, some with large memory, some with beautiful design etc.

The strategy for Sony phone is developing their product as much as possible. Sony phones sales
decrease last years, and profit dropped, so now Sony is trying to do their best to bring back their high
position on the market. And they try to do it with improving all characteristics of their product.

For effective segmentation are applied measurable, substantial, accessible, stable and useful basis
conditions.

Ø First of all, its measurable basis condition. This basis can be met at psychographic and demographic
segments. For example, demographic variables, these can be measured: different age groups, gender,
also social classes, family sizes. All of these variables can be measured in other groups. Also,
psychographic segment, there people can be divided into groups with different motives, lifestyles. For
instance, group of people who like sport, or who like to sit at home. There are different variable of
groups and these can be measured.
Ø These segments are large enough to be sufficiently profitable to justify developing and maintaining a
specific marketing mix. Sony phones are pretty large company and they can make profit from their sales.
The segments concern more high class of population, and also segment of high income, people should
be in is these groups, so actually, and most of all they are, so Sony gains good income.

Ø These segments aren’t accessible, because Sony phone aren’t available for all customers. Sony
phones are expensive and not all people can allow to buy their phones.

Ø Segmentation is stable. For example, Sony company has their own design of phones, also
characteristics differ from the other companies. There are a lot of Sony fans, what uses Sony products
for a long time. But Sony lost their position on the market. And also a lot of Sony customers want to
switch their phones for the Apple company phone. IPhone took Sony phones place on the market.