Geo-Demographic vs. Social Class Segmentation

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Table of Contents

Introduction
Discussion
Conclusion
Works Cited

Introduction

The turbulent market and increased competition have made market segmentation, product positioning and market targeting to be of due influence for the success of the organization. Market segmentation is a paramount approach to market strategy and provides the route into which the product is supplied to the right market. Customer diversity has made many organizations to differentiate their products to have competitive advantage through enabling and formulating the right market mix and strategies to enter the market. There are diverse approaches that a specific market can be analyzed and segmented to fulfill the vision and mission of the organization. Some of the segmenting approaches are the geo-demographic, social class, behavioral and preference to name some. Thus, the aim of this paper is to analyze which segmentation approach is better, is it geo-demographic or social class segmentation.

Discussion

Social class segmentation brings into consideration social stratification through the division of members into distinct social hierarchies. The amount of status that a member of a given class has in relation to other classes defines social class (Croft 34). Social class stratification brings into consideration six distinct classes: from upper to lower. On the other hand, geo-demographic segmentation combines geographic segmentation with socio-economic factors in locating the required market for a given product.

Geo-demographic segmentation is an important approach that the organization should adopt. This type of segmentation factors the geographic location in which the market should be picked, and social and economic considerations or position of the given market (Wedel & Kamakura 20). From this perspective, the approach of social class that the co-worker prefers is put into consideration by the geo-demographic segmentation. Geo-demographic segmentation factors social class and economic class in the way that it approaches its market. Thus, it combines many factors in picking the right market that should be penetrated by the organization (Weinstein 98).

Globalization is a factor that is growing at a faster rate and the main cause of competition. Social class segmentation does not put into consideration geographic regions to aid in globalization. Geo-demographic can utilize its two edged approach in developing the right market that the organization can have a competitive edge. Through its geographic segmentation, it can pick a given location and with the help of the demographic segmentation, it can easily understand the taste, preferences and standards of a given population developing the right marketing strategies to penetrate the given market (McDonald & Dunbar 90).

Geo-demographic segmentation ensures that the given market is understood and requirements of the given market are given consideration. For example, the BMW motorcar company may develop different variety of vehicles depending on the taste and requirements of their customers and they have to factor into consideration the terrain and road nature that the cars will be driven on. In such a situation, social class cannot play an important role, but geo-demographic is suitable because the manufactured vehicles may be marketed at a given terrain (Weinstein 89). Thus, it is crucial that the given location is understood so that a given product can be easily embraced by the given market depending on their disposable incomes.

Conclusion

Geo-demographic segmentation is a better approach to segmentation compared to social class approach. From the regions of globalization, usability and the taste of customers will ensure that the organization has a competitive edge against its competitors.

Works Cited

Croft, W. Market Segmentation: A Step-by-Step Guide to Profitable New Business. London: Routledge, 1994.

McDonald, M. & Dunbar, I. Market Segmentation: How to Do It. How to Profit from It. London: Palgrave Macmillan, 1998.

Weinstein, A. Market Segmentation Approaches, 2^nd Ed. New York: Probus Publishers, 1994.

Wedel, M. & Kamakura, W. Market Segmentation: Conceptual and Methodological Foundations, 2^nd Ed. New York: Springer Publishers, 2000.

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Geo-Demographic vs. Social Class Segmentation

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