Market segmentation is the process by which a market is subdivided based on products that particular groups of buyers require (Kotler and Armstrong, 2006, p. 17). There are several segmentation variables, namely: geographic, psychographic, behavioral, and demographic.
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Geographic segmentation refers to the collection and examination of information concerning the physical location of a consumer by exploring a region and its population density. Nike athletic shoes, which are used for common sports like soccer and basketball, are manufactured in many regions worldwide to reduce transportation costs hence lowering prices. The shoes for uncommon sports like American football or cricket are manufactured mainly in the areas where the sport is popular.
Psychographic segmentation is the study of undertakings, comforts, and attitudes customers display (Michman, 1991, p. 73). This offers an understanding of the demand. Many Nike shoes are used in different lifestyle sections which are running, golfing, basketball, and football. To make their athletic shoes comfortable for the consumers, Nike has affected the use of air technology in their manufacturing.
Demographic segmentation refers to the collection of information based on the physical characteristics of a group of consumers (Weinstein, 2004, p.233). Demographic factors that affect Nike’s athletic shoes include gender and social class which determines the prices of a variety of expensive and cheap shoes.
Behavioral segmentation is the collection of information based on specific behavioral patterns a group of consumers displays when making decisions on buying a particular product (Weinstein, 2004, p.233). Behaviors displayed when purchasing Nike athletic shoes include usage frequency and brand allegiance. Worldwide known athletes insist on having custom made shoes for their use in their respective sport. Nike Shoes Company sponsors athletes who sign contracts with them. Consequently, they have to wear their products and in return get paid. This ensures that the athletes remain loyal.
Nike Shoes Company has a huge role in various cultures, for example, in western culture. Many people often take part in activities associated with Nike. People of various ages take part thereby enhancing bonding and interaction among them.
Social factors are influenced by fans who buy certain footwear that their favorite athlete wears, for example, some buy Nike’s Air Jordan shoes since they are affiliated with Michael Jordan. Others go to the extent of buying the shoes their idol wore in a certain game.
Personal factors are usually characterized by professional athletes who want high-quality shoes with specific features. For example, Tiger Woods and Michael Jordan have had shoes designed with their specifications.
Geographic segmentation strategy seems to be more promising than the others since it considers the financial aspect of manufacturing the shoes. This is by having many factories worldwide, thus, reducing transportation costs which in turn reduces the overall price of the shoe. Also, the manufacturing of Nike athletic shoes for uncommon sports is only done in areas where the sport is already well established.
None of the segments should be dropped. The evaluation of the four market segmentation strategies can be used to determine whether the consumer’s expectations have been fully met.
Kotler, P., & Armstrong, G. (2006).Principles of Marketing.11th Edition. Pearson/ Prentice Hall: New Jersey.
Michman, D. R. (1991). Business and Economics. Praeger Publishers: Westport.
Weinstein, A. (2004). Business and Economics. Haworth Press: Pennsylvania.