Marketing: Importance of Market Analysis and Segmentation

This essay discusses the importance of market analysis and segmentation in marketing. It explains how market analysis helps in identifying target market groups and developing marketing strategies to increase sales. The second part of the essay presents a case study of a clothing line business that is facing low sales and how market analysis and segmentation can help solve the problem.

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Introduction to Marketing
Essentially, marketing has become an integral element of any business in the highly
competitive contemporary business environment both locally and internationally. Marketing is a
complex process that consists of all the activities involved in preparation for sales, (Tanner, Jeff,
and Mary, 2015). The local and global business environment is dynamic with several internal
and external interrelated factors shaping the market dimensions continuously. In order for any
business organization to survive or strive in business, it has to be flexible in their marketing
tactics so as to attract new customers and retain the old customers as well.
Marketing is driven by the urge to fill the gap existing between the product or service
and the potential customers. The concept of 7 Ps, that is, product, price, place, promotion,
people, positioning and packaging, is commonly used in marketing, (Abdul-Hamid, Ibn Kailan,
et al, 2017). Marketing involves producing the right product that will be available to the right
customers at the right place and time.
The main purpose of marketing is to create utility. A utility is defined by the American
Heritage dictionary as the quality or condition of being useful, (Hair, Joseph, and Bryan, 2014).
Utility refers to the ability of any product or service to satisfy the needs and wants of the
customers. There are four types of utility namely possession utility, time utility, form utility and
place utility.

In order for any business organization to make more sales in a competitive business
environment, they have to perform a good market analysis. Customer satisfaction should be the
key driving force behind the operations of the organization. Market analysis involves analyzing
market opportunities through defining the market, sales forecast and demand analysis, company
resource assessment and consumer assessment. Secondly, market analysis involves identification
the market segments and selecting target market groups to put more emphasis on them.
Identification of the market segment allows a business to understand the needs of their
consumers as well as gain a comprehensive understanding of their purchasing habits and power.
Understanding the target segment will help the organization become creative in producing or
offering goods and services that meet the specific needs and demands of their customers. The
needs and wants of the customers change continuously thus it is important for any business to
have an interactive engagement with their customers, (Hill, 2015). Establishing good customer
relations promotes brand loyalty which is good for business.
Market analysis also helps in developing marketing strategies that help an organization
create and maintain a competitive advantage over their competitors. Development of market
strategies involves the process of positioning, considering the dynamic global challenges and
opportunities, modifying the production life cycle as well as making choices on the most
appropriate strategy to be adopted by the organization. Marketing also involves planning of
marketing programs. Marketing programs and practices include managing brands and packaging,
selection of the suitable marketing channels, selecting the suitable pricing strategies, designing
promotion activities, managing wholesaling, distribution and retailing among many more
activities, (Weinstein, Art and Dennis, 2014). Marketing also requires coordination and

managing of the allocated resources. This involves organizing the available resources and
implementing marketing strategies as outlined in the marketing plan.
Part 2
Problem Statement
This part of the essay is about my research on how I can solve a marketing problem that
I am encountering in my clothing line business. The problem is that I am making low sales and
this will eventually lead to losses. There are constant operation costs that must be met such as the
rental fee despite the fact that I am making low sales hence the risk of me incurring losses is very
high.
Purpose of the Research
The purpose of this research is to enable me to sell more by doing a good market
analysis. The objective of any business is to make high sales and consequently the highest profit
margins as possible and this is my objective too. The market research is supposed to help me
answer the question of why I am making low sales. Answering this question will help me
determine how to solve the problem and gets my business going in the right direction.
Data Collection
I used the internet to do surveys on the current trends in the clothing line business as well
as surveys of the clothing sector. I also used social media platforms such as Facebook and
Instagram to gather information on customer interests.

Results
From the analysis of the trends in clothing line sector, I realized that the sector is too
wide and it is difficult to cope with the trends in the whole market. The reason I am not making
sales is that I don't understand my customers. I realized that I need to concentrate on a target
group and analyze then well in order to offer them products that meet their specific needs. Social
media platforms also allowed me to get a wide range of contribution from potential customers.
Analysis and Discussion
From the data I collected in the research, it is evident that my marketing was poor
specifically market segmentation. I have realized that I need to focus on a specific market
segment and comprehensively understand their purchasing habits and preferences. From the
social media platforms, I decided that I should select the youths both female and male since they
conscious of their fashion statement and the current trends in fashion.
Market segmentation theory is based on the concept that each segment market comprises
primarily of investors who have a preference for investing in securities with specific durations,
(Venter, Peet, Wright, and Sally, 2015). I chose this theory in this research since it is closely
related to the problem I am encountering in my business. The theory basically illustrates that
every market segment is unique and business have to analyze and comprehend their wants and
needs. For instance, in my business, I have the opportunity of using the social media platform to
determine the trending fashion among the target group and offer them similar products. I should
also use social media as a marketing tool to reach a wider market since most of the potential
customers in the target group are active social media users.

In summary, marketing is a complex process that consists of all the activities involved in
preparation for sales. Market segmentation is very important in the marketing of products and
services.
Work Cited
Tanner, Jeff, and Mary Raymond. Principles of marketing. University of Minnesota Libraries
Publishing, 2015.
Abdul-Hamid, Ibn Kailan, et al. "Sustainability Marketing: The 7ps Perspectives." 5 the
International Conference on Contemporary Marketing Issues ICCMI June 21-23, 2017
Thessaloniki, Greece. 2017.
Hair Jr, Joseph F., and Bryan Lukas. Marketing research. Vol. 2. McGraw-Hill Education
Australia, 2014
Hill, B. "The Importance of Marketing and Communication." Houston: Demand Media (2015).
Weinstein, Art, and Dennis J. Cahill. Lifestyle market segmentation. Routledge, 2014.
Venter, Peet, Alex Wright, and Sally Dibb. "Performing market segmentation: a performative
perspective." Journal of Marketing Management 31.1-2 (2015): 62-83.