Essay On Market Segmentation

1536 Words4 Pages

MARKET SEGMENTATION
Market segmentation is a marketing term referring to the aggregating of prospective buyers into groups, or segments, that have common needs and respond similarly to a marketing action. Market segmentation enables companies to target distinct categories of consumers who perceive the full value of certain products and services differently from one another. Market segmentation is the process of defining the suitability of a submarket for a specific property. Market segmentation is an extension of market research that seeks to identify targeted groups of consumers for tailoring products and branding in a way that is attractive to the group. The objective of market segmentation is to minimize risk to the company by determining …show more content…

Demographics
Using demographic parameters is an effective way to segment your target markets. This information includes age, gender, race, location, educational background and more. Think about the types of customers your business is targeting. If you have a regional product, perhaps your customers are in certain cities or states. Your product may be targeted for businesses, individuals or both. As you brainstorm, you'll start to recognize distinct groups forming.
Psychographics
Psychographics analyze your customers' values, personality traits, interests, attitudes and opinions. This information helps you build a clearer persona for each of your groups. Is your customer independent or does she long to feel included? What does she value? If you aren't sure, hiring an outside market research company to run focus groups or conduct research surveys is a fantastic way to gain more insight. Contacting a local business school to help is a less costly …show more content…

To target prospects looking for lower prices, you could, for example, offer the same product in simpler packaging or offer a lower price to online buyers. Reduce your costs by stripping out extras, such as quality packaging or discounts to retailers. To charge higher prices, offer customers a service, such as first-class delivery, or distribute the product through retailers that offer a prominent level of personal service to customers.
TARGET MARKET
Target marketing recognizes the diversity of customers. This way of marketing is unique because marketers who use this method try not to appeal to the entire market but to a specific group. Most target markets describe subgroups of people with like characteristics. The overall intent of market segmentation is to identify groups of like customers, prioritize the groups to address, understand their interests and behavior and respond with appropriate marketing strategies that satisfy each chosen segment’s different preferences.
Again, target markets may be demographic, geographic, psychographic or

Open Document