Qualitative Research - Identify 5 market segments for the company Netflix. For e
ID: 3493762 • Letter: Q
Question
Qualitative Research - Identify 5 market segments for the company Netflix.
For each segment-
In dividing the market into segments, science marketers can use a simple rubric to determine whether their segmentation strategy will serve them well. This 'viability test' requires marketers to analyze the segment and answer five questions. Only if the answer to all five questions is "yes", will they know if they have a viable market segmentation strategy. These questions evaluate the market segment from different perspectives:
1. Is this segment homogeneous? Recalling that the purpose of segmentation is to find a group of people who have the same need in order to predict their behavior, this first question allows marketers to ensure that they have found a homogenous audience, united by a common need or attribute
2. Is this segment profitable? Is the segment large enough to justify dedicated efforts? With today's technology for micro-segmentation, a single segment need not support the product's entire revenue expectations, but every segment should promise a positive return on investment (or otherwise have a very strong strategic justification)
3. Is the segment identifiable? Will marketers have the ability and data to identify and reach the segment easily? With the sophisticated data available on scientists and highly targeted content, it is now possible to go far beyond traditional demographic categories for micro-segmentation.
4. Is the segment stable? Does this segment's needs stay relatively constant? It would be foolhardy to develop a campaign based on a fleeting market need, so marketers need to determine whether the identified need is inherent or otherwise stable
5. Is it reachable?
6. Is it a "fit"?
Qualitative Research -Identify 5 market segments for the company Netflix For each segment- In dividing the market into segments, science marketers can use a simple rubric to determine whether their segmentation strategy will serve them well. This 'viability test' requires marketers to analyze the segment and answer five questions. Only if the answer to all five questions is "yes", will they know if they have a viable market segmentation strategy. These four questions evaluate the market segment from different perspectives: 1. Is this segment homogeneous? Recalling that the purpose of segmentation is to find a group of people who have the same need in order to predict their behavior, this first question allows marketers to ensure that they have found a homogenous audience, united by a common need or attribute Is this segment profitable? Is the segment large enough to justify dedicated efforts? With today's technology for micro-segmentation, a single segment need not support the product's entire revenue expectations, but every segment should promise a positive return on investment (or otherwise have a very strong strategic justification) Is the segment identifiable? Will marketers have the ability and data to identify and reach the segment easily? With the sophisticated data available on scientists and highly targeted content, it is now possible to go far beyond traditional demographic categories for micro-segmentation. Is the segment stable? Does this segment's needs stay relatively constant? It would be foolhardy to develop a campaign based on a fleeting market need, so marketers need to determine whether the identified need is inherent or otherwise stable Is it reachable? Is it a "fit"? 2. 3. 4. 5. 6.Explanation / Answer
The aim of market segmentation is to make the organization high yielding and profitable and have growth potential. It is the process of dividing a broad consumer/business market consisting of existing and potential customers into sub-groups of consumers based on characteristics. For segmenting markets, researchers look for common characteristics such as shared needs, common interests, similar lifestyles, or similar demographic profiles. Consideration to strengths of segment like less bargaining ability of consumer, weakness in terms of consumer reach and bargain from vendors, threats from competitors, opportunities to enhance business profit are give during the process.
Netflix is provider of videos and media through online streaming and DVD by mail. It is essential for the organization like Netflix to consider a good market segmentation to reach target group effectively and enhance the growth potential as well as profitability. Some considerations for market segmentation for this business are:
1. Audience of similar needs: In this particular segment, audience who have similar needs are grouped together to provide the service as per their respective needs. The grouped target audience according to similar needs are easily identifiable and providing the service to achieve business success will be effective. This process ensures homogenous consumers and profit is not hindered.
2. Segmentation of market through matter specific need. Here, the audience of similar age are targeted for providing media and informational service as per the need of their age. Example: Kids group are interested in cartoons and learning through comics, teenagers may be interested in educational media for acquiring new skills, etc. The organization can try to make business profitable by serving the matter specific choice of media for this target audience. The reach, profitability, attributions are given consideration.
3. Geographical segmentation: The organization can try to provide the service accordingly to needs of target group of particular geography. Providing the entertainment and media of geographic and regional choices will enhance identification of target group and improve the profitability.
4. Segmentation of market considering ability of group to purchase service. Here, cost-effective media and video solutions can be provided to those have low purchasing power. Differential pricing can also be applied if it does not hinder the organization's overall business. This process enhances reach, profit, usage.
5. Segmentation of market considering previous preferences of existing customers and loyalty of consumers. Here, the target group is loyal customers who are associated with organization for their needs. By providing appropriate discounts and other benefits, these target group can be made satisfied and remain as loyal consumer, also refer new customers. This segmentation improves the reach, profitability, and it is fit to create more business.