IDENTIFING MARKET SEGMENTS AND TARGET
Market segmentation is the division of the total market into relatively homogeneous, but distinct segments. It is used to identify target audiences and strengthen a campaign 's effectiveness in reaching selected segments. Segments usually respond to campaign elements differently and different techniques are required to reach and motivate various segments.
We will discuss Market Segments and Targets, and we will know:
What are the different levels of market segmentation?
How can a company divide a market into segments?
How should a company choose the most attractive target markets?
What are the requirements for effective segmentation?
Steps in Market Segmentation, Targeting, and…show more content… Better matching of customer needs
2. Enhance opportunity for growth
3. Enhance profit
4. Build strong profile market
To know more about why segments market, we will but case for Reebok shoes, showing how different Reebok shoes reach segments of customers with different needs
Basic Market-Preference Patterns
• no natural segments
• all buyers have same preference
• no pattern (…or poor research)
• take center position
• natural segments
• increases as number of competitors increases
Segmenting consumer markets
There are a number of groupings that businesses use to loosely identify their target markets. These can be identified in the following groups:
This is all about people in general. Segments in this classification include:
• Family size
• Income levels
• Ethnic background
• Socio-economic background
Some of these will be further sub divided. For example, the socio-economic background might identify managerial