Uncovering New Market Segments

A company I purchased from recently (and rather frequently) was Nike. As someone who lives an active lifestyle, I am a very loyal customer to Nike. Lets take a look at their market segmentations.

What market segments were identified, and what segmentation strategies were implemented by the company you purchased from?

There are many market segments that Nike relies on, layering demographics, psychographics, geographics, as well as behaviors. Nike’s market segments include athletes, women, children, and environmentally conscious consumers. This company has a diverse amount of products, catering to a wide range of consumers.

Specifically, Nike targets young and middle aged folks who live an active lifestyle and value comfort. This can be parents, as well as children, professional athletes, or simply active people.

What do you believe are four to five key points to remember when implementing segmentation strategies?

1. Be sure to conduct proper research and collect proper data. Doing the proper market research is crucial to understand behaviors and preferences.
2. Adjust the marketing mix to the different segments. This could be most acknowledged for the promotion portion of the marketing mix. For Nike, they want to create ads for their kids line that connect with kids, or parents. They also want to create ads that cater to women, with women athletes etc.
3. Ensure that the segments remain dynamic. The market is always evolving, as well as the consumers and habits. It is crucial when implementing segmentation strategies that companies do not remain static. They must be able to adapt to behaviors and changes.
4. Avoid over-segmentation. Having a few different market segments is good, however too many can become complex, inefficient, and costly. It is better to focus on a few, manageable segments in order to properly address and cater to them.

Identify a new market segment that you have noticed recently (during your own shopping experience online, in a commercial ad, or in a secondary resource such as a magazine) that you believe would be a great market to explore. How might you create a segmentation strategy to reach this new market segment?

A new market segment that I have recently noticed is eco-conscious shoppers. These consumers are focused on the environment and purchasing sustainable products from companies that operate with the environment in mind. Nike already values and works towards zero emissions, however they could work on marketing towards eco-conscious consumers. A way to reach this market segment is to create ads and commercials that highlight the sustainability of their products.