Market Segmentation According to ‘Track Marvin’ market segmentation “as the process of subdividing market of potential customers into groups, or segments, based on different characteristics such as geographic or demographic.” Market Segmentation has allowed ‘JB-Hi-Fi’ to target customers’ needs more effectively as well as it allowing ‘JB-HI-Fi to choose those segments that they feel they can maximise their profits from or which they are most equipped to handle and the current time. Market Segmentation has four key requirements to an effective segmentation the four are accessibility, substantial, Differentiable, Actionable. Accessibility refers to how well the service or good can be reached, Jb-Hi-Fi excels in this area through their online …show more content…
JB-Hi-Fi also has over three hundred stores across Australia which opens up the customer range based on geographic location. ‘Substantial’ refers to the different segmentations and if they are profitable for the business. As stated before Jb-Hi-Fi is very profitable and segmentations based on factors such as geographic location allow them to identify the needs and wants of a particular segmentation which has allowed their dominance in the video game/ dvd industry, where they have 44% of the market share as well as a 27 percent market share in domestic appliances. Differentiable is intrinsically linked the marketing mix and the need for the segments to be different from one another. JB-Hi-Fi has been able to successfully separate these so that a failure in one doesn’t affect the other markets. The final key for an effective market segmentation is if the segment is actionable, and will allow for programs to be establish to help the different segmentations profitable, such as targeted …show more content…
Using the marketing mix JB-Hi-Fi has been able to successfully identify what prices to sell particular goods at, as demonstrated for JB-Hi-Fi as they use a low cost approach and has allowed for high market share across different areas of the business. JB-Hi-Fi through promotions as well as being able to deeply connect with consumers. With the increase use of social media in the world it is a key promotional tool for JB-HI-Fi, this can be seen through their investment in a Facebook page which promotes all the deals that are on offer and special offers or new products. As well Jb-Hi-Fi use television to still advertise sales to possible consumers which overall has seen them stay as one of Australia’s premier retail stores. However Jb-Hi-Fi isn’t perfect in their promotions strategy, they fail to sponsor any sort of major sporting team or league within Australia, unlike a competitor in Harvey Norman who have naming rights of V8 Supercars team and sponsor the Women’s Rugby League National team. While not sponsor a team has yet to majorly impact the business it may still be turning some consumers away who want to buy from a business who is active with supporting community’s and their teams. Overall the Marketing