Understanding Market Segmentation: Key Stages and Methods

Short Answer: Market Segmentation Assignment Sydney Plummer CMUS356: Music Marketing (B01) Professor Hodges January 27th, 2024

1. Explain the stages of market segmentation and the criteria that must be met for successful segmentation. According to our textbook, Market segmentation is used to “determine the target market for your specific product,” ( Rolston et al., 2015). The first stage of market segmentation is the selection of segmentation variables which differ depending on which product is being reviewed, and then based on the variables selected the market is separated along those chosen segmentations. The second stage is reviewing each segment and determining the demographic it will be targeting. Then it will be researched to determine the sales potential it has, and if it meets certain criteria, markets are chosen from the segments that were selected. If the product does not meet the right criteria it is re-evaluated. In order to have a successful segmentation, there are certain criterias that have to be met. The first criteria that has to be met is sustainability. In order to be sustainable cost-wise, the segments have to be large enough to support it. The second criteria that must be met is measurability. The people marketing the product have to have enough information and have the ability to analyze the segment so that they can understand what they are working with. The third criteria that has to be met is accessibility. The segment has to be able to utilize communication and distribution avenues that already are in place. Responsiveness is the next criteria that has to be met. The segment has to be able to respond positively to marketing and result in sales. Finally, uniqueness is the last criteria that has to be met. The segment has to be different enough to be used in different markets and avenues of marketing. 2. Describe four ways that a market can be segmented. A market can be segmented in four ways. From the weekly reading it was explained that

they are: Geographic segmentation, demographic segmentation, multivariable segmentation, and psychographic segmentation. Geographic segmentation can be used to divide markets into different areas such as cities and regions as well as their population sizes. This information allows for determining different factors such as a consumer's income, values, as well as their history. Demographic segmentation is used to analyze things such as age, race, gender, income, and education, among other things. It is cheaper and easier to measure compared to other segmentation methods. Multivariable segmentation is used to combine multiple demographics in order to more accurately target certain markets. Psychographic segmentation is used to move consumers into groups based on their lifestyles, opinions, interests, and other things. It is used to give additional information about what consumers think about in order to create a more targeted marketing campaign. 3. How do streaming companies like Spotify use market segmentation? Streaming companies use market segmentation because they know that consumers' preferences are linked to their different personality traits. These traits usually put them into one of four dimensions: reflective and complex, intense and rebellious, upbeat and conventional, and energetic and rhythmic. Knowing this assists companies to promote different music and styles to different people. It helps them make the consumers feel as though they need the music they are marketing. They ask questions to determine and the answers that consumers give allow them to tailor music to certain tastes, as well as measuring things such as engagement, identification, and emotional response to make this happen. It allows them to put these answers into a database, and use statistical analysis to suggest songs someone might want to hear in order to grow and expand

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their marketing and data collection analytics. They also utilize internet searches consumers make and sites they visit to create a profile about users interests and use this to offer music suggestions.

References Rolston, Clyde Philip, et al. Record Label Marketing : How Music Companies Brand and Market Artists in the Digital Era , Taylor & Francis Group, 2015. ProQuest Ebook Central ,http://ebookcentral.proquest.com/lib/liberty/detail.action?docID=4098068.

Short Answer_ Market Segmentation Assignment

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