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
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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
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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
Segmentation variables can be classified into four major classes; geographic, demographic, psychographic and behavioural. The use of these categories either individually or in combination assists companies to identify and establish market segments which is relevant to the product or service they are offering. This in turn helps these organisations to evaluate the relevant segments to choose the pertinent target market.
Figure out the typical customers is the first marketing strategy. Business should find the right customers who would by your product and tailor and focus its marketing effort toward them. Thus, this target market represents the group of customer offering greatest opportunity.
Terrell, E. (n.d.). Market Segmentation. (Business Reference Services, Library of Congress). Retrieved April 6, 2014, from http://www.loc.gov/rr/business/marketing/
“A market segment consists of a group of customers who share a similar set of needs and wants. The marketer’s task is to identify the appropriate number and nature of market segment and decide ...
Market segmentation can be defined as the process of subdividing and defining a large homogenous market into a clearly noticeable segments
Caroline and Jennifer said that ‘Market segmentation is a crucial marketing strategy. Its aim is to identify and delineate market segments or set of buyers which would then become targets for the company’s marketing plans.’ (Tynan and Drayton, 1987) There are many ways to segment the market, such as age, region, environment, psychology and wages (Hall, Jones and Raffo, 2010).
Segmentation is the process of identifying different macro-groups of customers (i.e. segments) based on their common characteristics. The process of choosing a target segment, on which to focus marketing activities on, is a process named targeting.
To begin with, it is crucial to appreciate the meaning of segmentation and targeting because these two terms lay the foundation for this report. Consequently, segmentation is dividing a market, into groups of consumers with homogenous traits in order to provide each group with the desired product. What is the meaning of targeting? It is where an enterprise evaluates every segment with an objective of identifying segments with promising business opportunities. Considering the nature of the product in question, it sufficed to mention that liquor- filled chocolates are to be sold to adults.
Understanding demographic factors such as age, gender, income level, education level, occupations etc., helps to create effective marketing strategies to boost brand loyalty and membership rates to attract more customers
Demographics play a large role in aiding businesses with the adequate information to convince the viewers. The main demographics include gender, age, culture, race, and location. These are just a few of the many areas that help researchers study human behaviors. The research provided by these studies can be very specific to a certain community, age group, or ethnicity. This benefits marketers in their approach to presenting products to the right viewers (Sessom).
Segmentation is a procedure of splitting up the market into different groups of consumers who the same common needs and wants. There are different types of segmentation like geographical segmentation, behavioral segmentation, demographic segmentation, lifestyle segmentation. Lexus divided their vehicles into two categories they four wheel drives and two wheel drives.
According to Kotler et al 2013 market segmentation is defined as dividing a market into smaller segments of buyers with distinct needs, characteristics or behaviours that might require separate marketing strategies or mixes. As per the industry data which we were operating we used different theories to segment the market one of them is STP process. In this method whole market is sub divided into different segments based on three activities these are segmentation, targeting and positioning. From the market information in case study we identified similar groups of consumer under market segmentation activity. For example market E had consumers travelling between mini hub to medium city that had a new and growing market. While targeting the market we identified which group of consumers to aim for instance market D had major university and service sectors. Lastly in the product and brand positioning we created a concept so as to appeal the target market by running as discount airline. One of the approaches for market segmentation according to Kotler et...
Market segmentation means dividing the market into distinct groups that have common needs and will respond similarly to marketing action. Each segment must be unique, have common needs, and respond in a similar manner to marketing efforts. Target market is the group of potential customer that has been selected by business to focus its marketing efforts towards. This is the group the business wants to sell its products/services to. Positioning refers to the image created in the minds of customer of its product or brand. It is a perception created in the minds of the consumer relative to that of its competitors.
Segmentation is a marketing strategy that involves separating a wide target market into small groups of customers who share the common need of using or purchasing the product that needs to be marketed. Market segmentation strategies are utilized to identify these groups of consumers and strategies are designed and implemented to make the product or service appeal to them. Support and also the product will be strategically placed in order to successfully achieve the ultimate marketing goal. Businesses and organizations may come up with different type of strategies involving different products and catchy phrases depending on the product or the target segment.
Demographically we can segment the market into groups based on age, gender, family- size, income, family life cycle and occupation.