Market Segmentation of Toshiba free essay sample

Demographic Market Segmentation: 2. 1) Market Segmentation Based on Gender Groups: Gender is one of the key demographic variables for Toshiba’s market segmentation. Although Toshiba’s product line is suitable for both men and women, it is the male side that makes up the majority portion of consumers. Men have a technological world view that grew up along with industrial society (Brenston, 2007). Hence it was no surprise that Toshiba had that in mind and made its product renowned for elegance and class, which is an essential element in middle-high working class. By looking at the new Toshiba satellite television commercial (2009), one can tell that the product is targeted towards working class men as the commercial include offices and male entrepreneurs in its scene. Besides that, Toshiba hires famous female celebrities such as Japanese singer BoA and Chinese athlete Guo Jing Jing to promote their products, notable for the sex appeal towards men. We will write a custom essay sample on Market Segmentation of Toshiba or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 2. 2) Market Segmentation Based on Marital Status: Toshiba target established families rather than single bachelor for its home appliances products. Family-size refrigerators, washing machines, or to the extent of rice cookers make up the majority part of Toshiba’s home appliance’s product line compared to the business-use product line (Toshiba, 2009). It makes sense that family posses a bigger consumer than single men and women. By targeting their market to the family group Toshiba would increase their revenue and maximize the profit. 3. )Social-Economic Market Segmentation: 3. 1) Market Segmentation Based on Lifestyles: Lifestyle signify how a people live, the patterns of belief and action characteristic of a people life. By segmenting the market through the pattern of lifestyle, companies can create the products that match the consumer’s aspirations. During the time when people are living in village, their lifestyle is simple. Therefore, electronic devices produced on those times were designed accordingly to the lifestyle that meant for convenience. When people’s lifestyle is more modernized and urbanized, electronic devices companies started to create more products that can make life comfortable. Today, electronic devices not only offer functions to people; but also a part of fitting decorations for the home. Recently, many people lean towards green lifestyle and this has motivated many companies to focus on this potential market segment (TreeHuggerHaven. com, n. d. ). They are looking to develop products that are less harmful to environments which encourage people to buy the products due to this trend. According to Kenney (2007), Toshiba got the gold rate standard in green electronic industry from Green Electronics Councils Electronic Product Environmental Assessment Tool. From segmentation of lifestyle, Toshiba can attract people’s interest from their daily attitudes or trends, and revolutionize new products to suit the customers. Toshiba increases the selling through leading consumers into expenditure and consumption of the company’s products. This is what we call marketing strategy (Cahill, 2006). 3. 2) Market Segmentation Based on Social Class: Income has determined the purchasing power of an individual. As the income increases, the power to make purchases become higher. Therefore, the upper class is capable of purchasing more goods and services. However, Toshiba is not focusing only on upper class segment. They understand that upper class is not the majority of society (Abercrombie et al. , 2000). Hence, Toshiba produces the products that are equally distributed to upper, middle and lower class to earn maximum profit (Toshiba, 2008). Although the products for middle class and lower class may get lower returns per unit, the proportion is larger. This is due to the fact that electronic devices played main role in our daily life today. Some electronic devices are the basics requirements of each family. For the upper class, certain products are designed to be more luxurious. Human psychology has proven the passion of human soul for materialisms, which focuses on wealth, possessions, image and popularity as well as psychological needs (Kasser, 2003). Therefore, upper class people may only demand electronic devices that are special and luxury. Although th ese kinds of products are less in the market, the return profit from each unit is bigger. Toshiba can get the support from whole market only if they emphasizes on all the social classes’ market segment. 4. ) Geographical Variables: 4. 1) Market Segmentation Based on Climates: In terms of climate market segmentation, Toshiba distribute their product with different functions on different climate based on what a country faces. Examples are the European countries that experienced winter. Their weather is humid and cold, making it is hard for the clothes to dry. Hence Toshiba added a drying function on the washing machine that they sold in those countries. However, countries in Asia have hot weather thus it is easy to dry clothes. Therefore, Toshiba add on other functions except the drying function on the washing machines they sold for Asian’s consumer. As global warming became a serious issue now, consumers are thinking more and more about impact the products have on this planet. As a result they are looking for brands and products that are committed to the environment (Maria Repole, 2009). Therefore, Toshiba start to tackle climate change by providing more energy efficient product and new recycling programs on their product. By doing this, consumers are willing to accept their product as Toshiba is reducing their product impact on the environment. Moreover, Toshiba is also moving towards solar photovoltaic systems business that is highly recognized as a solution to global warming (New Materials Asia, 2009). 5. )Behaviour Market Segmentation: 5. 1) Market Segmentation Based on Usage Rate: Toshiba uses the concept of usage rate to separate customers into light, medium and heavy consumers. Heavy users obviously contribute more to turnover than light or medium users. The objective of an organization should aim to attract heavy users who will make a greater contribution to company sales (Birch, 2008). Toshiba divides the buyers of its product by estimating the usage rate of each group of consumers. For the heavy usage rate consumers, their turnover rate is high and they always looks for quality products that pro-long the usage life whereas medium usage rate consumers are looking for products that only provide significant function. Light consumers are new to purchase electronic products and always look for the basic function as their needs. Pareto principle, 80/20, state that 80% of sales are come from 20% of loyal customers (Azad, 2007). Although Toshiba target the heavy usage rate consumers in the market, it also produces products that are suitable for medium and light usage rate consumers to maximize the profit and generate new loyal customers. 6. )Recommendations: Nowadays, woman is getting increasingly important in market share and is has greater interest in electronics than ever before (White, n. d. ). Therefore, Toshiba should work towards this line by create products that can meet the needs of woman. For example, products should be created with features such as easy to operate, well-designed and others. Besides that, Toshiba also should concern about the counterfeit products which may hurt the reputation of Toshiba. As Quirk stated that there is an increase in the number of counterfeit parts from China. 7. )Conclusion: In conclusion, market segmentation helps Toshiba to determine how well their product services meet the target market and identify the most and least profitable customers. Beside that, market segmentation also helps Toshiba to control their prices by comparing with others competitors so that Toshiba can remain competitive in the market. According to Morton, she has stated that the more effective in improving marketing strategies and tactics with characteristics derived from market segmentation, the more likely it will convert target market members into customers.