Under Armour: Where Do We Go From Here?

The text defines market segmentation as the process of dividing the market into smaller, more defined categories of needs and wants. Under Armour identified the market that needed an alternative to sweat-soaking cotton, thus they created the breathable, dry-fit material. Additionally, Under Armour targeted women who were criticized for something they often have no control over, their body shape, yet had the mental strength to push themselves rather than give into societal pressures.

When implementing segmentation strategies, it is important to consider the affects the campaign can have on sales. Celebrity endorsements are great as everyone want to be or be with that celebrity, but if they have skeletons in their past, they can negatively impact the campaign and turn customers over to competing brands. Word of mouth is another large marketing tactic, for myself included. I rely heavily on peer recommendations, and Social Media is an ever-growing tool for just that. While social platforms are an easy way to spread information quickly, they also pose a threat by showing any and all negative reviews and experiences. People may feel strongly about a topic, but the most they will take away from that advertisement is the heightened emotions, not the name of the brand or the newly launched product.

While launching new product lines, it is important to consider the demographic makeup of the market. While a product may be advertised by professional athletes or movie actors, it is essential to make it affordable as nearly two-thirds of Americans live in the middle class. Not only that, but methods of advertising are also dependent on the age of the market. I would love a new Apple Watch, but my grandmother wouldn’t even know how to turn it on.

Geographic location also plays a large part in market segmentation. Marketing for a product such as snow tires is only helpful in places that get large amounts of snow like Michigan, Utah and Washington but are useless in states like Florida and Alabama.

Consumer behavior is another important factor when implementing segmentation. Analyzing trends is a huge part of boosting company sales and introducing new products. Being able to determine where the company is losing money can pave the way to product improvements, ultimately boosting customer satisfaction.