Monday, May 6, 2013

Chapter 8. Segmenting and Targeting Markets

There are a few bases for segmenting consumer markets. They are geography, demographics, psychographics, benefits sought, and usage rate. 
Analyzing Tiffany & Co. market segmentation, I would like to look first at demographic segmentation since there are several bases such as age, gender, income, ethnic background, and family life cycle. First of all, Tiffany's main market target is women, who buy and receive as gifts these beautiful jewelry. So, even though men are involved in the purchasing of Tiffany's products, women remain to be the main influencers. With its various design collections and price range, the company meets wants and needs of consumers of different age and income. Tiffany services generations X, Y and baby boomers. While generation X, who are working women, earn enough money to pay for high-quality goods, baby boomers buy the luxurious items even despite insufficient funds. But, generation Y consumes the product because they enjoy to follow the celebrity trends.

Despite the fact that originally Tiffany's jewelry were created for high-class women, now its product becomes more affordable as the company always looks for the way to expand its market. Now even lower income women can buy Tiffany's product because of the addition of collections such as made from sterling silver.
Since Tiffany & Co. is a specialty company that sells mainly jewelry, customers turn to its product for celebration of some significant events such as engagement, wedding , anniversary or birthday. In this case, this kind of purchase may include people of different family life cycles such as young single, young married with/without children, middle-aged married with/without children etc. 
People buy Tiffany's product basing their purchasing decisions on motives and lifestyle.

Besides that women are the primary users, Tiffany services other businesses also. The company sells its products to businesses to promote some program or give gifts to dignified employees. The company regularly designs trophies for some special events. Plus, Tiffany & Co. are deeply involved in charitable activities giving generous donations for the support of arts, education, health and environment.

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