What are the 3 types of market segmentation? Please describe each briefly(3-4 se

Question

What are the 3 types of market segmentation? Please describe each briefly(3-4 sentences each)

According to our text, by percentage, which business type by legal form of organization is the most abundant? S Corps, C Corps, Partnerships, or Sole Props?

Situation 3 Can owning a business be in your genes? What about if it's a franchise? Brothers Joe and Allen Hertzman mixed coleslaw and mopped floors in their father's Long John Silver's restaurants when they were kids. Today, the brothers own six Long John's Silver's, thirteen Rally's, and twenty-four Papa John's Pizza units. Both have been named franchisee of the year by their franchisors. When asked if they have different management styles, the broth- ers responded that they have some differences but intentionally have the same message and culture. Their saying is "Operate each store as if it's our only store." Sources: "Bro Deals: Sibling Franchisees Are Building an Empire," Entrepreneur, August 2014, p. 102;and Debbie Selinsky,"Tri-Effective: Joe Hertzman Wins with Three Brands over Three Decades," http://www.franchising.com/articles/trieffective_joe_hertzman_wins_with three_brands_over_three_decades.html, accessed January 22, 2015 Question 1 How do you think growing up in a family business affects career decisions by children of the owners? Question 2 If you were going to run a business with a family member, how would you go about deciding on the organizational culture you want to create?

Explanation / Answer

Market can be segemented into three types: Demographic, Geographical and Behavioral

Demorgraphic Segmentation: In this type customers are segemented on the basis of various demographic factors like age, gender, ethnicity, religion, income, occupation, nationality etc. It is one of the mostly used segmentation types used in almost all types of industries like automobiles, beauty products, apparels, mobile phones etc.

Geographic Segmentation: As the name suggests geographic segmentation divides the customers based on the place they live. In addition customers are further divided as rural and urban. This is a very useful strategy as people residing in different places may have different needs. For example, water may be scare in some regions. Further demand for some products may be higher in somer regions when compared to others. Understanding all these regional differences is very important for marketers.

Behavioral Segmentation: In the behavioral segmentation, customers are segmented based on behavioral traits, product usage, choices, preferences and decison making. Knowledge of the product and usage of the product play a key role in the behavioral segmentation of the customers. People can also be labelled as brand loyal, competitor loyal or brand neutral. Further the product users can be segmented as ex-users, current users, first time users, potential users etc.

Sole proprietorship is the most abundant business type. More than 70% of the businesses come under this category.

1) The career decisions of the children depends on the type of business and the values of the family. If the business is a sole proprietorship and if it requires hard work, then the children are usually encouraged to pursue employment. This is because the parents themselves do not respect their professions and do not want their children to pursue the same. On the other hand, if the parents are proud of their business and if their business is quite profitable, then the children are encouraged to pursue the family business. Rather than genes, the kind of upbringing affects the career decisions of the children. However there are also exceptions to this and it requires a lot of determination to take decisions which are which are not in line with the family values.

2) I would make sure that there is more transparency in the operations and that the individuals have enough freedom so that they can act autonomously and take more responsibilities. In additon, I would encourage a flat structure in the organization. Most important of all, customers will be given the highest priority in each and every step of the business. I will make sure that the family member is equally responsible and determined to make our business a success.

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