Identifying Market Segments And Targets

• Explain demographics, Geographic’s, psychographics and why companies use these methods to segment the market effectively

Market segmentation is specific sections of the market that an organisation is aiming at. In order for an organisation to engage its market segmentation the organisation has to match its products to the customers wants and needs to appeal to the customer to buy the good or service. Market segmentation allows an organisation to have a competitive edge and it is a key factor for the organisation profitability and survival. Company use target marketing which is when a business aims all of its marketing effort to a certain group of customers which is affective as these are the group that spends the most. There are many ways to segment the market to create that certain group such as demographics, psychographic, geographically and lifestyle. Demographics is consists of dividing the market into groups based on variables such as age, income, occupation, religion, race and nationality. Psychographic segmentation is based on social class and lifestyle. Lifestyle is based on knowledge, attitude, their uses and segmentation. Geographic segmentation is the segmentation which divides the market but location, regions, countries and cities. Asos as an organisation is aimed at people of the ages of 15-34 year olds who are very fashion forward and who enjoy the culture of online shopping. In geographical segments Asos has created their website differently for 9

Kotler, P., & Keller, K. (2012). Marketing Management (14th ed., pp. 517-518). Essex, London: Prentice Hall.

Additionally to the Market segmentation, many retailers and businesses use the segmentation as a marketing strategy and a factor when determining such as the location of a store, or the products that are going to be sold. Some of the strategic methods that are well known and utilized by many businesses are the Geographic, Demographic, Psychographic, and the Behavioral segmentation. I will focus more on the Geographic segmentation which creates data from the consumer's zip codes, neighborhood population and household income, and much more. Overall every retailer's focus is to have a successful business, and when doing that you must know who you are targeting and undergo research about those consumers who will be purchasing your products. This

Kotler, P., & Keller, K. L. (2011). Marketing Management (14th ed.). Upper Saddle River, NY:

Armstrong, G & Kotler, P. Marketing: An Introduction, Seventh Edition. (2005). New York: Prentice Hall.

One must understand the marketing segments of this population. First, the geographic segmentation represents a market that is divided by its location. In this case, the geographic segmentation is based on the consumers who live in a specific region, such as the homeless mothers and young children. In other words, these women and children all share some similar wants and needs. Then there is demographic segmentation, which consists of demographic factors such as age, ethnicity, nationality, and occupation. In this case, the demographic factors include young mothers and their children, homeless individuals with no jobs, and a variety of different ethnicities. Next is psychographic segmentation that handles personality, values, attitudes, interests, and lifestyles. Lastly, there is behavioral segmentation, which divides the market into groups based on their knowledge, uses and responses to a certain product. For example, the population being discussed has a lack of knowledge of healthcare, but understands how to interact with social media.

Kotler, P., & Keller, K. L. (2011). Marketing Management (14th ed.). Upper Saddle River, NJ: Prentice Hall.

Donnelly, J. & Peter, J. (2014). A Preface to marketing management (14.th ed.). New York, New York.

The main way to show reliability is by helping school districts when they have vacancies. We will ensure immediate coverage if the SLP is terminated or has to go on leave.

Segmentation brings benefits not only to the marketer, but to the customer as well. When segmentation attains higher levels of sophistication and perfection, customers and companies can conveniently settle down with each other, as at such a stage, they can safely rely on each other’s discrimination. The firm can anticipate the wants of the customers and the customers can anticipate the capabilities of the firm.

A Framework for Marketing Management, Fourth Edition, by Philip Kotler and Kevin Lane Keller. Published by Prentice Hall. Copyright © 2009 by Pearson Education, Inc.

Kilter, P. & Keller, K. L. (2012). A framework for marketing management. Upper Saddle River, NJ: Pearson Education

It is the division of a market into homogeneous groups of consumers, each expected to respond to a different marketing mix (Dictionary of Business). Segmentation bases on: (1) Geographic segmentation: divides customers into segments based on geographical areas such as regions, states and cities. (2) Demographic segmentation: divides customers into segments based on demographic values i.e. age, sex, occupation, and nationality. (3) Psychological segmentation: perception. (4) Cultural

Market segmentation is an approach used by a company to select their target market and provide data for a marketing plan. “Market segmentation consist of a two-step process; naming broad product markets and segmenting these broad products-markets in order to select target markets and develop suitable marketing mixes” (Perreault, Cannon, & McCarthy, 2014, p.97). There are 4 categories pertaining to market segmentation; behavioral, geographic, demographic, and behavioral.