MKT10007 Assignment: Consumer Segmentation of Samsung M8000 Curved TV

This report focuses on consumer segmentation for the Samsung M8000 curved TV, a key component of a marketing assignment. It segments consumers based on their use frequency of the product, employing four profiling elements: user usage, brand loyalty, benefit, and willingness to spend. The analysis includes a detailed segmentation table categorizing consumers into low, moderate, high, and very high usage groups, with corresponding levels of brand loyalty and willingness to spend. The report provides definitions for each profiling element and justifies the chosen segmentation base, emphasizing the importance of the 'Acid' test for effective segmentation. Furthermore, it outlines the five necessary factors for a useful segmentation base: measurable, accessible, substantial, actionable, and differentiable. The report references relevant academic literature and includes links to supporting resources. The assignment also references the broader marketing context, including industry analysis and the evolution of marketing strategies, as seen with examples like Ford and early mobile phones.

Section 2: Consumer segmentation (400 approx)
Consumer Segmentation Table
We decided upon assessing the essence of the Samsung M8000 curved TV which we will be
marketing, to divide our prospective consumers into segments on the basis of the use frequency
of the product and splitting it into for profile elements.
USE
FREQUENCY
USER
USAGE
BRAND
LOYALTY
BENEFIT WILLINGNESS TO
SPEND
LOW Low Moderate Low Low
MODERATE Moderate Moderate Moderate Low-moderate
HIGH High high high Moderate
VERY HIGH Very high Very high high High
2.1 Profiling elements defined
The User usage element divides consumers based on how much they use a product.
Brand loyalty is a pattern of consumer behaviour where consumers have positive feelings
towards a brand and willing to buy the same product or service repeatedly without having second
thoughts. (Gustafsson et al. 2005; Lee et al. 2007).Benefit contributes to the perceived value,
benefit or advantages that the consumers want to receive from the TV. Customers who don't
mind paying extra for quality and options, they would receive the better benefits than the
consumers who are price conscious would receive least amount of benefits. the For users who
have to spend lots of time in watching TV programs, playing games in TV, surf internet through
TV and have fascination in new TV models and features- will be more inclined to spend money
on the purchase than a buyer who use TV not on a regular basis.
2.2 Justification of segmentation base:
We chose use frequency for segmenting the market of Samsung M8000 curved TV because we
are separating users on the basis of their expected use frequency of the TV. To make profiling
elements to be useful in every way, the segmentation must go through a test called the ‘Acid’ test
which states “Each person should only be able to go into one segment only” (Campbell 2016a)
To having a useful and reasonable segmentation base for profiling five factors are needed which
are- measurable, accessible, substantial, actionable and differentiable from each other.
Measurable – It refers to the fact that the purchasing power and market size of the particular
needs to be evaluated (Abubakar, 2011). For instance, the general usage frequency expected by

television industry can be addressed with various consumer insights relating to their views on
social media sites like Facebook and Instagram.
Accessible - It is also important to consider how the group might be accessed considering
various practices of marketing department. The anticipated usage of Samsung M8000 curved TV
can be gained with various responses related to social media campaigns, commercials on internet
and television and outdoor advertising.
Substantial – It is important for the company to serve a particular homogenous group having
clearly defined characteristics rather than wasting marketing budget on that segment that is
characterized by negligible spending power or low brand preference (Campbell, Mhlanga and
Lesschaeve, 2013). Because of moderate and high brand loyalty, it can be said that this product
is substantial to all active market in the industry.
Actionable – It implies that a market must possess some sort of practical value considering both
the company and the customers (Mishra, 2015). For instance, Samsung M8000 curved TV can be
marketed to high frequency users by showing its various creative sides and innovation attributes.
Differentiable – It is significant that the market segments must be clearly defines as it will help
Samsung to apply its marketing tools and campaigns in relation with Samsung M8000 curved
TV and can be implemented without overlap.
References
Abubakar, H.L. (2011) The Relevance of Marketing Segmentation on the Level of Sales of a
Product or Service. Journal of Entrepreneurship Research, 1(1), pp.36-45.
Campbell, B.L., Mhlanga, S. and Lesschaeve, I. (2013) Consumer preferences for peach
attributes: Market segmentation analysis and implications for new marketing
strategies. Agricultural and Resource Economics Review, 42(3), pp.518-541.
Mishra, C.S. (2015) Customer Value. In Getting Funded (pp. 31-54). New York: Palgrave
Macmillan.

Links –
http://www.academia.edu/download/30734561/
The_Relevance_of_Consumer_Segmentation_on_the_Level_of_Sales_of_a_Product_or_Service.docx
http://sci-hub.tw/https://www.cambridge.org/core/journals/agricultural-and-resource-economics-
review/article/consumer-preferences-for-peach-attributes-market-segmentation-analysis-and-
implications-for-new-marketing-strategies/A9223AE60BE192E66C084AE104EA69D8
https://link.springer.com/chapter/10.1057/9781137384508_2