Write a 3 page essay on Euro Mosaic Segmentation Method.
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This research will begin with the statement that today’s world market of products is experiencing high competition not only by more competitors but also varieties in consumer’s demands and needs. To ease marketers for fulfilling the demands of customers, different consumers are segmented into different bases. “Global market segmentation is the process of identifying specific segments, whether they be country groups or individual customer groups, of potential customers with homogeneous attributes who are likely to exhibit similar behavior”. Geodemographic classifications put a step towards consumer segmentation. The more difficult markets to assess are those in which there appears to be a discrepancy between the long- and short-term attractiveness. Euro Mosaic claims to be the first pan-European segmentation system allows the classification of 500 million consumers across the European Union on the basis of the types of the neighborhood in which they live. It focuses on many dimensions for segmentation of a product like Elite suburbs, average areas, luxury flats, low-income inner-city, high-rise social housing, industrial communities, dynamic families, low-income families, rural agricultural and vacation retirement. In European Geodemographics Conference 1st April 2009, Andy Bell of Eurodirect told about the changing political, economic and cultural faces of Europe and the opportunities these are bringing for global businesses….
Companies can now access a variety of public datasets (censuses and social surveys for example) as well as market research and list broking resources, many of which are moving east into the wider Europe. Countries in Europe have widely differing per capita incomes and in creating a European segmentation it is important to capture both absolute and relative differences between areas – to avoid, for example, all areas of the poorest countries being classified into the poorest segment. Also, pictorial representations of segments, whilst popular in national systems, can be confusing or misleading if applied on a pan-European basis. (Peter Furness, 2009) Euro Mosaic Segmentation is frequently used in many countries for different product fields. A well-established system which overcomes most of the difficulties and encompasses both geodemographic and behavioral lifestyle factors is the CCN ACORN/MOSAIC system. The system was originally pioneered in the UK market and extended in response to an increasing number of requests from multinational clients, looking for a common and consistent European-based consumer targeting system (MOSAIC Today, 1993). Use of MOSAIC segmentation method is very popular in industries. This gives many advantages to the businesses, companies, product fields and world market of goods and services. MOSAIC segmentation method develops the customer profiles and databases on different bases. This provides many uses in retailing and trade business. “A major concern to the retail location analyst is that, given the assertive marketing of such companies, it is more difficult to evaluate critically the bases and appropriateness of the packages offered.