The market segment of Affordable Solutions Limited can be developed by using three common approaches. The first is demographics. This approach divides ASL’s market in terms of age, marital status, gender, income, education, and race. In this regard, the consumers can be taken represent one with computer access, male and female. The age of the customers may vary between the youth and adults and are mostly of African decent. In terms of geography, the market segment is mainly based in Jamaica especially in Spanish, Portmore, and Kingstone Towns. In terms of behavior, the consumer segment has interests based on convenience. The consumers in Jamaica have an interest of avoiding the hustle of Christmas shopping and hence look to the services offered by ASL.
One way of segmenting the consumer market can be achieved through using demographics. In this regard, factors such as age, gender, race, marital status, education occupation, income and other segmentation traits. An example of this segmentation tool can be applied in products such as hygiene commodities. In this case, a company that deals with feminine products with list “female” description in its market segment (Basden, 2006).
The other way of segmenting the consumer market is through using psychographic characteristics. Also referred to as lifestyle segmentation, this tool has increasingly been used by companies as they look to identify consumer activities and interests in relation to demographics. An example of this consumer segment tool is applied in consideration a consumer’s lifestyle. For instance, camping enthusiasts exhibit little consistent demographic traits. On the other hand, people that go camping are a diverse group. Therefore, marketers will have a likelihood of targeting outdoor campers or hobbyists for camping equipment through magazines and programs (Basden, 2006).
Target marketing refers to redirecting marketing functions towards a particular consumer group. On the other hand, market segmentation refers to the breakdown of the consumer market into smaller groups with an intention of promoting the service or product differently to each segment. In contrast, Basden (2006) states that a target market is established once the company has evaluated all possible market segments and then determines the most profitable and appropriate .
One target market for ASL hinges on consumers with access to computers and internet. This is justified by the fact that shopping is done online using the company’s shopping website. Additionally, the target market in this case has to be computer literature. The other target lies within the geographic segment. In this case, the company has targeted customers residing within Jamaica especially in Spanish, Portmore, and Kingstone Towns. In terms of psychographics, ASL can as well be said to have targeted customers with an interest of achieving convenience. Consumers targeted are those that want to avoid the strenuous implications of holiday shopping, in this case, Christmas.
ASL can be said to have applied cost based pricing as its pricing strategy. This involves adding a percentage or fixed amount to the cost incurred purchasing or making the product or service. In this case, the company gives a product or services a fixed price and then adds an extra amount with regard to delivery costs. One disadvantage of this strategy is that increases in say, transport costs then translate to an increase in product costs. This implies that the company would be retailing a particular product at a higher price compared to its competitors, and hence risks loosing its customers.
Basden, G. T. (2006). Marketing. Niger Ibos: Description of the Primitive Life, Customs and Animistic Beliefs, Etc., of the Ibo People of Nigeria by One Who, for Thirty-Five Years, Enjoyed the Privilege of Their Intimate Confidence and Friendship, 334-341.