PART A
Marketing is considered an essential strategy for any business to remain effective within the highly dynamic client preference and attract attention to a particular brand. Thus, the paper will identify four market segments I mainly belong to and be accompanied by a detailed analysis of why I chose the segment. Also, the last section of the paper will connect Maslow’s theory of motivation to the identified segments with two primary needs.
According to Kotler and Keller (2016), a market segment is a group of potential clients that share creatin attributes, likes and dislikes, which can be applied to optimize marketing. Therefore, a firm focusing on a segment contributes to adjustments in product prices, promotions, client experience, and new product development to meet targeted clients’ demands. The four market segments that I belong to consist of generation Z, culture, values, and price sensitivity (Kotler, & Keller, 2016). Generation Z mainly relates to all the people born from 1995 to this era, which has shared realities internationally (Özkan, 2017). Values mainly denote a person’s perceptions and beliefs regarding sensitive matters, while culture is connected to an individual’s way of life linked to the geographical birthplace, which instils various traditions in different people. Finally, price-sensitive highlights the capability of an individual to pay a tremendous amount for the service or product since they always connect low prices with low-quality products or services.
PART B
Generation Zs are perceived as the generation with the highest spending power compared to others (Özkan, 2017). This cluster is mainly marked by age because it encompasses people born from 1995 to date, which is where I can be categorized. Also, the people are deemed more conscious of the world, linked to being raised in an internet-driven environment that significantly exposes them to a host of data regarding everything. Moreover, the group is at the centre of various global and social tensions resulting from various value systems for each. Such values are portrayed in deciding to purchase products or select brands with a higher cause, like settling for organizations that promote care for animals, choosing environmentally friendly products, or being loyal to companies that engage in humanitarian aid (Kotler, & Keller, 2016). I belong to this group because I am highly invested in the companies and products committed to caring for the environment; thus, I merely purchase environmentally friendly products and services in the current global warming era.
Culture mainly deals with the traditional practices of the individuals and what is perceived to set them apart from others. Besides, people from different regions prioritize different beliefs, hence are more inclined toward a particular trend and behavior while purchasing products or services (Kotler, & Keller, 2016). Hence the companies and marketers need to ensure that they make the right items that fit the trend and behavior of such clients. For example, being a Mexican, I mainly value religion and family; hence, I prefer products with similar underlying concepts. Lastly, the price-sensitive market segment draws on the people’s connection to the money and ease of spending. This segment perceives product prices as a severe attribute of their purchase process. Hence, they often consider very low prices linked to poor-valued products and always decline to buy products with lower prices (McCormick, 2016). Being from generation Z, spending a lot of cash is not easy since I depend mostly on my parents and guardian for financial support. Moreover, the group has experienced more economic meltdown due to economic recession caused by pandemics compared to other generations, which has taught them to minimize spending. Hence, I usually settle for high-quality products offered at affordable prices.
PART C
To further comprehend client buying behavior, researchers and scholars have used various models and theories to the notion, among them being Abraham Maslow’s theory of needs. Maslow’s hierarchy of needs is a model of motivation that mainly highlights the five categories of individual needs that dictates people’s behavior. The needs are physiological, safety, love and belonging, esteem, and self-actualization (Hopper, 2020). the physiological needs represent the most fundamental human survival needs incorporating water and food, clothing and shelter, sufficient rest, and overall health and reproduction. These needs should be addressed initially before the individual moves to the next level. Safety needs encompass protection from violence and theft, health security, and emotional security, among others. In comparison, love and belonging needs reflect a social requirement linked to human interaction. Esteem needs are considered high requirements and are primarily ego-driven necessities. The central aspect of this need includes self-respect and self-esteem. Lastly, self-actualization must highlight the fulfilment of a person’s full potential.
The primary needs for the generation Z segment are physiological, and self-actualization needs. In this case, the physiological needs contribute to the continuity of the people as aligned to food and water, among other physical requirements. The Gen Zers are currently attempting to create a niche for themselves. Hence, they are more prone to the products and services they consider unique to their generation, thus, often spending more than other generations (Özkan, 2017). Also, the self-actualization needs are tied to the segment as they intend to stand out and do things differently. As a result, they usually focus on the products and companies that support development, consider their uniqueness, and are less biased. The value segment’s needs should be met, including safety and esteem requirements. The necessity of safety mainly impacts the individual to select only products that guarantee no harm to what is valued because of the desire for control and order. Therefore, the products and services that would allow such individuals to have control of a situation would appeal to this segment. Besides, esteem is linked to the feeling of making a difference in the world; hence, the segment would often settle for products and companies with a higher cause.
Cultural segments primarily operate with social and esteem needs. The individuals in this segment are often required to feel like they belong and are valued and respected for the person they represent. Thus, they are most probably to settle for the products that enable them to feel like a part of a larger group with shared attributes globally. Lastly, the price-sensitive segment mainly requires physiological and safety needs because the two categories highlight their feeling of being in control and survival. Therefore, they often check their budget, enabling them to select products and services that they perceive as the affordable price range for fiscal stability. Also, such products should effectively meet their basic needs. Market segmentation and client behavior often shape marketing strategies implemented in different locations and generations. Therefore, the company is aware of the different attributes of the targeted market and will ensure that it provides products and services aligned to their needs for the firm to be effective in such markets.
References
Özkan, P. M. (2017). Generation Z-the global market’s new consumers-and their consumption habits: Generation Z consumption scale. European Journal of Multidisciplinary Studies, 2(5), 150-157.
Kotler, P., & Keller, K. L. (2016). A framework for marketing management (p. 352). Boston, MA: Pearson.
McCormick, M. (2016). How to Convince Price Sensitive Customers to Spend Their Money. Black curve. Retrieved from: https://blog.blackcurve.com/how-to-convince-price-sensitive-customers-to-spend-their-money#:~:text=Price%20sensitive%20customers%20are%20those,a%20product%20of%20lower%20cost.
Hopper, E. (2020). Maslow’s hierarchy of needs explained. ThoughtCo, ThoughtCo, 24.