Market for machines: economic analysis and trends

Market for Machines: Segmenting for Time A clock manufacturer realizes that he is operating in the market for machines that measure time. How should this market be segmented? Identify the key segmentation variables that are relevant for this market.

The segmentation of markets who want to purchase timepieces, from the large grandfather clocks to the ultra-thin watches that have become popular, needs to be centered on needs-based segmentation of markets, cross- references by a behaviorally-based approach to defining those needs. In short, a lifestyle-based approach to defining segmentation needs to pervade the product planning efforts of a company producing timepieces and machines that measure time. Everyone is a consumer of time, yet the perceptions of time, how consumers choose to view time, from the minute-egg timers to the larger swinging pendulums of large clocks, all is dependent on the lifestyles of the consumers. The use of psychographic positioning is also a critical aspect of segmentation, which is by definition how consumers assi9gn themselves to groups (Marketing Leadership Council, 2006). The choice of segmentation strategies could also be fine-tuned by the life- stage of consumers, with those members of a target audience who have young children needing clocks with simple numerals for example versus the more ornate clocks that retirees like to decorate their homes with. The use of attitudinal segmentation in conjunction with lifestyle and psychographic- based analysis of consumers' needs can lead to entirely new classes of products being produced. Often those companies with the best understanding of the preferences of their consumers also create more innovative products as a result.. In this regard, the use of segmentation as an approach to driving future product innovation through more effective customer insights is invaluable as well.