TARGET MARKETING ESSAY ASSIGNMENT 2
Target Marketing Essay Assignment
Market Segmentation
Market segmentation is the practice of breaking down your target market into discrete
consumer groups that share similar traits and goals. One may adjust the strategy for marketing to
better satisfy the desires and needs of their consumers once these categories are identified. The
target market is divided into smaller groups using comparable factors like age, income,
personality traits, behavior, hobbies, requirements, or geographic location. In order to divide a
heterogeneous market into smaller, more homogenous subgroups and create various marketing
strategies to best satisfy the distinct requirements and desires of the segments, segmentation aims
to identify one or more characteristics of market participants (Young, 2022, p. 192).
888888 Although understanding how to categorize consumers into different market segments is
crucial, there can often be a few hiccups in the process when managers and all other parties
involved aren’t aware of how to go about examining and separating their target market. Most
issues are strategic or conceptual in nature and arise at the managerial or organizational level.
For instance, in organizations with the following traits: rigid organizational structures, a lack of a
data collection culture, ineffective communication, a lack of marketing expertise, uncertain role
distribution when implementing segmentation solutions, a disconnect between segmentation
solutions and tactical programs, and a lack of clarity, Managers typically don't have a conceptual
grasp of market segmentation and dedication, and as a result, they don't allocate enough money
for segmentation or its execution (Dolnicar & Lazarevski, 2009, pp. 358).
Also, there have been questions surrounding whether market segmentation is a marketing
strategy or is it perhaps another form of research analysis aimed at identifying and allocating
TARGET MARKETING ESSAY ASSIGNMENT 3
resources among market groups (Dickinson & Ginter, 1987). According to this usage of the
phrase, the aim is to identify and serve these groups rather than modify or amplify disparities in
their demand functions, which presupposes the existence of segments with various demand
functions. Thus, rather than being referred to as a management plan, market segmentation is
considered an approach to evaluating the market. Consequently, there is no specific or correct
way to go about segmenting markets; every approach has its pros and cons depending on the
product or service being considered as well as the managerial objectives for segmentation
(Grover & Srinivasan, 1987).
Relevant Ways to Segment Market
The iRobot Roomba vacuum and mop would benefit most from segmenting the market
based on consumer behavior, lifestyle, family size, and geographic location. To begin with,
customer behavior might shed light on the actions—or lack thereof—of various social groupings.
For instance, it would be absurd to promote this product to a family that employs a maid to
handle all of their household duties or to a family that pays for a weekly cleaning service to come
out and clean their house. This data might be gathered by having the audience respond to online
survey questions regarding chores that are explicitly focused on household cleaning duties, for
example, who usually completes them, how often do they have to clean, how much time do they
spend sweeping and mopping floors, how likely on a scale from 1 to 10 are they to invest in a
product that no longer requires them to sweep and mop floors, what would hinder them from
purchasing the product, etc. From this, it would be possible to get a distinct idea of the kinds of
households that are most likely to purchase this product.
Additionally, by using this data to forecast their future behavior, businesses may better
understand each group's requirements and develop marketing campaigns, product experiences,
TARGET MARKETING ESSAY ASSIGNMENT 4
and customer services that are relevant to them. With behavioral segmentation, one may also
make better use of the resources available to their business. Let's say someone categorizes
various consumers based on how likely they are to make subsequent purchases. Then, rather than
spending time and money on those who are unlikely to buy, one can concentrate their marketing
efforts on loyal consumers who have a higher chance of doing so.
Secondly, the next way to group consumers would be by discovering what their lifestyles
are like, or, in other words, by using psychographic segmentation. The research approach known
as psychographic segmentation is used to examine customers and categorize them based on
psychological traits such as personality, lifestyle, social status, activities, interests, opinions, and
attitudes (Wells, 1975). Your ability to infer a lot about someone's preferences for where, when,
and how they spend their time and money depends on their lifestyle. For example, how much do
they work? How often is everyone in the household home? What do extracurricular activities
look like for everyone in the house? Etc., this can help determine, one, whether work schedules
prevent them from being able to complete household chores or if they have time, and two,
knowing how often family members are at home can help determine how likely it is that the
house is kept clean.
Third, family size is important because, although single and married consumers can both
benefit from this product, knowing the specific household size can help tremendously in the
campaign planning phase. Knowing such information can help tailor advertisements and
campaigns so that they reach both audiences in ways that are personal to both groups, even
though the same product is being promoted. For example, if one were to create two commercials
targeted at single individuals and married couples, one commercial could show a family of four
coming in after a long day and deciding to use the iRobot vacuum and mop, while the other
TARGET MARKETING ESSAY ASSIGNMENT 5
could show a college student coming from class using the iRobot vacuum to clean their
apartment.
Last but not least, location could be used to divide market segments because, since the
product is only available to citizens in the U.S. and Canada, it helps build stronger relationships
between customers while also increasing revenue. Customers' user experience is enhanced when
relevant products are presented to them, which decreases the amount of effort they must expend
to discover what they want. You can also use geographic segmentation to innovate your product.
For example, a vacuum style may be prevalent in a certain area. If iRobot makes a version of the
product with that specification, they can increase sales. Geographic segmentation may be more
straightforward than other categories because the information is solid, making measuring and
analysis much easier.
Market Characteristics of Market Segments
Additionally, a market's or industry's appeal to a certain firm or organization can be
evaluated based on a variety of different characteristics. Currently, iRobot is primarily aware of
three market characteristics: current market size, number of competitors/level of fragmentation,
and technological skills needed. Starting with current market size, the market for robotic vacuum
cleaners was valued at USD 9.77 billion in 2020, and it is anticipated that it would increase at a
CAGR of 27.2% from 2021 to 2028, rising from USD 11.97 billion to USD 50.65 billion. The
impact of COVID-19 on the world has been unprecedented and astonishing, and due to the
epidemic, cleaners have seen a surge in demand in every location. According to our study, the
global market will increase spectacularly by 22.5% in 2020. When the pandemic is gone, this
market's demand and growth will resume to pre-pandemic levels, which explains the abrupt
decline in CAGR (Fortune Business Insights, 2019).
TARGET MARKETING ESSAY ASSIGNMENT 6
In 2018, it is anticipated that more than 20 million robotic vacuums will be sold
worldwide by iRobot’s company, which is widely regarded as the industry leader. The company's
ability to advance robotic technology across several other household robot categories, including
security systems, lawnmowers, and others, is largely to blame for this. It is projected that
ECOVACS Robotics, which already has a significant presence in China, would expand there as
well as elsewhere in the world (Fortune Business Insights, 2019). In addition, to maintain a
strong position in the market rivalry, prominent manufacturers are concentrating on creating
robotic vacuum devices with a quick force-feedback control algorithm. Competitors are as
follows: Trifo,8AnKobot, Neato8Robotics, and LG Electronics.
Target Market
Target marketing includes assessing the segments to see which have the highest potential
for growth. The majority of the time, choosing target markets, also known as market targets, is an
investment choice. In order to optimally spend its limited resources in emerging areas for future
growth, a corporation must make this choice. If all else is equal, it should make investments in
the target markets that provide the greatest potential long-term returns (Young, 2022).
One must understand who their customers are if they want their company to be a success.
Knowing the audience being targeted will enable businesses to market to those who will pay for
their goods or services. This is a much more efficient and cost-effective approach to connecting
with clients and driving sales. If a company sets their goals too high or discovers too late that
there aren't enough people interested in what they're offering, they'll be squandering their time
and effort (Australian Government, 2021).
TARGET MARKETING ESSAY ASSIGNMENT 7
Since the turn of the twenty-first century, consumer markets have been impacted by e-
commerce, which is growing in popularity as a method of online shopping. Given that young
people are more likely to make online purchases, the corporation has determined that this is a
successful strategy for reaching their target market. Through retailers and one or more tiers of
middlemen, iRobot uses an indirect marketing channel to sell its products. iRobot’s overall
positioning strategy is "the same for less," and marketing positioning is the last step in
determining where the company will place itself in the market sector it has chosen to target. This
is a strong value proposition since it offers comparable features and durability to rival goods
while charging less, luring consumers away from industry leaders (Chen, 2013).
iRobot runs a comprehensive system of distribution with a variety of direct and indirect
marketing avenues. The corporation may target a larger market and cater to the specialized
demands of a wide range of market segments thanks to this advantageous mode of operation.
iRobot uses a solid 4P structure and a clear marketing approach in the US market. The Roomba
series, which provides a lot of functions and an entire experience with consumer perks like
warranties, helps the firm target a lucrative market niche (Chen, 2013).
iRobot’s target market audience would be single and married individuals who live in the
United States or Canada and, of course, have their own home. They may either not like
completing household chores, want to minimize the time they spend on them, or simply don’t
have time to do so. The strain of time has a significant impact on household cleaning, and those
with hectic work schedules have limited time, making them the product's clear target market
(Mintel, 2010).
TARGET MARKETING ESSAY ASSIGNMENT 8
References
Australian Government. (2021, August 3).8Identify your target market | business.gov.au.
Business.gov.au. https://business.gov.au/marketing/identify-your-target-market
Chen, Yueying. (2013). iRobot Roomba Range.
https://www.academia.edu/31543929/iRobot_Roomba_Range
Claycamp, H. J., & Massy, W. F. (1968). A Theory of Market Segmentation. Journal of
Marketing Research, 5(4), 388–394. https://doi.org/10.2307/3150263
Dickson, P. R., & Ginter, J. L. (1987). Market Segmentation, Product Differentiation, and
Marketing Strategy. Journal of Marketing, 51(2), 1–10.
https://doi.org/10.1177/002224298705100201
Fortune Business Insights. (2019).8Global Robotic Vacuum Cleaner Market Size, Share &
Report, 2026. Fortunebusinessinsights.com.
https://www.fortunebusinessinsights.com/industry-reports/robotic-vacuum-cleaners-
market-100645
Grover, R., & Srinivasan, V. (1987). A Simultaneous Approach to Market Segmentation and
Market Structuring.(Journal of Marketing Research,(24(2), 139.
https://go.openathens.net/redirector/liberty.edu?url=https://www.proquest.com/scholarly-
journals/simultaneous-approach-market-segmentation/docview/1297326802/se-2
Mintel. (2010). Vacuum Cleaners - UK. Household: UK8
Sara Dolnicar & Katie Lazarevski8(2009)8Methodological reasons for the theory/practice divide
in market segmentation,8Journal of Marketing Management,825:3-4,8357-
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