Market Segmentation Strategy of the Nokia Company in Business Markets Free Essay Example, 2500 words

Market segmentation is one of the approaches used by many business farms in the modern day to market their products. The concept of segmenting the market emerged to replace mass marketing, which viewed the market as a single unit with similar needs. Contrary to such an approach, market segmentation appreciates the fact that the entire market is comprised of smaller segments with each segment exhibiting different features. The focus of business farms is to identify one of these segments and understand their needs and expectations critically. After understanding the needs of the market segment, the company can then launch products that target the specific segment. Marketing strategies used to promote such products suit the identified market segments (Hassan, Craft, Kortam 2003, p. 446). Successful market segmentation is comprised of numerous steps. The first step is the recognition that users of products and their unique needs define the market. After the recognition that the market has a diverse range of users, who have different needs, business firms focus on dividing the market into segments of the users. Usually, the division has its basis on the defining characteristics of the individuals in each group as well as their exhibited consumer behaviors. We will write a custom essay sample on Market Segmentation Strategy of the Nokia Company in Business Markets or any topic specifically for you Only $17.96 $11.86/page 6). Demographic segmentation is one of the common types of approaches used in market segmentation. It relies on demographic factors such as gender, race, age, education level, income, type of occupation, and finally the stage of life. Business firms group consumer markets based on any of these factors.