Market Segmentation And Target Market

They have a very clear strategy for the pursuit of their goal and vision. The market segmentation as well as the identification of target markets is the important element of each marketing strategy at which they are the basis for determining any particular of the marketing mix, which is product, pricing, place and promotion. Market segmentation reveals the company's market segment opportunities. The company has to evaluate the various segments and decide how many and which segments it can serve the best. In evaluating different market segments, a company must consider of three factors, that is, segment size and growth, segment structural attractiveness and also company’s objectives and resources. (Armstrong & Kotler, 2005)

As every customer has unique needs and expectations towards certain products, the ultimate goal of market segmentation is to organize customers into groups which allows targeting of customers with similar needs of and response to the products. The key is to minimize differentiation within each segment

Market segmentation is usually regarded as one of the main elements of marketing, with benefit segmentation commonly referred to as the most meaningful form of segmentation. Even though the importance of segmentation is broadly accepted, limited research, do exist about cosmetic medical products (Mohr, Sengupta, & Slater 2010, 79). There are very few real examples of segmentation studies available. This article has focused on Johnson and Johnson products marketing strategy globally. The spread of global culture is normally facilitated by the rise of global capitalism, the proliferation of transitional corporations, homogenization of global consumption, and widespread aspiration for material possessions. International market researchers have discussed the breadth of convergence of cultural values across countries.

Market demand is an aggregate of all the demands a consumer group of a given geographical area is willing to buy and is able to pay for in a given time period. While evaluating available opportunities in market the marketer must first try to estimate the demand. However market demand is not a permanent rather it is a combination of time, space and product level.

Market segmentation is the process of dividing the market into various segments which maybe on the basis of demographics, psychographics, behavioural or geographic factors (Philip Kotler, 2012). For instance, Britvic may break down its market into groups based on age such as children (those who are under 18) and older consumers (those who are over 50). People in one segment share similar characteristics, attitudes. In this example, the ones in the children segment may prefer flavours like strawberry, may like nice, attractive packaging than other segments like older consumers.

Marriott International, Inc. was founded by J. Willard and Alice Marriott in 1927 and has been a leading hospitality company for over 80 years. It has more than 3,900 properties, 18 brands, and associates with its headquarters in Bethesda, Maryland, USA. The company boasts of revenues of nearly $13 billion in the fiscal year 2013 and is expanding globally. This paper specifically discusses the market segmentation, targeting and positioning strategies of Marriott – Marriott Hotels & Resorts, Courtyard by Marriott in the Asia-Pacific marketplace. Asia-Pacific is expanding exponentially for the hospitality industry and Marriott has

We will be targeting a consumer market. Pop Tarts are a product that should be able to show up in stores across South Korea. The average disposable income per capita is 18,035 USD a year. While this is not necessarily high by any means, South Korea does have the 12th largest economy in the world (“Korea Life Index,” 2015). Within the consumer market, there are several target markets that we could go for in South Korea. What would seem to be the most obvious would be children, ages 5-12. This is the main target market for Pop Tarts in the United States. One might think that this would be the route one would want to go. In the United States, Pop Tarts are often advertised using silly and cute cartoon commercials and use endorsements, such as Disney Channel or Nickelodeon stars, that would appeal to younger children. While this style could possibly work in South Korea, I feel that it would not be the best way to go about making Pop Tarts popular.

According to Kotler and Keller (2012) Psychographic segmentation divides buyers into different groups based on psychological and personality traits, lifestyle, or values. The four groups with the highest resources are innovators, thinkers, achievers, and experiencers. The four groups with the lower resources are believers, strivers, makers, and survivors (Kotler & Keller, 2012). Given Coca-Cola’s long and storied history, individuals comprising the believers and survivors groups are exceptionally strong psychological groups for the company given the historical strength and customer loyalty these consumers have with the company. Somewhat in contrast, consumers fitting into the higher resource groups like innovators and high achievers are much more likely to be attracted niche alternatives. Coca-Cola has made several brand changes to better position the company in these higher-priced markets, which plays well to experiencers willing to try new products and thinkers

Market segmentation is a strategy that involves breaking down a business’s current target market into smaller subsets in order to establish a more defined set of market categories. It is important to first look at the tools available to assist with segmenting the market prior to beginning your segmentation. These tools include the following:

Market segmentation is the first step marketers take in order to design a customer-driven marketing strategy. This steps consist of dividing the market taking into account different criteria to do it. In other words, marketers have to consider characteristics and the different needs that customer might have. This step helps marketers to determine what products buyers might require. After doing this, once marketers have all the information they need about the different segments of the market, they decide what segment to enter by evaluating all of the segments they identified in the previous step; this is the Market Targeting Step. In conclusion, in market segmentation we just divide the market, while in target marketing we evaluate those segments.

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Identifying various segments of a target market can be achieved by examining geographic, demographic, psychographic and behavioural differences among consumers. Segmentation is a methodological process of dividing a market into distinct homogenous groups that might require separate experiences or marketing service mixes (Venugopal and Baets 1994) (Sulekha Goyat. 2011). There are numerous ways how market segments can be identified (Mazanec, 1997; Wedel & Kamakura, 1998). The process by which segmentation takes place consists of three main elements: segmentation, targeting and positioning (Kotler, 1998). Figure 1 gives an overview of these elements

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.

At its core, any sound business strategy should be based on a sound understanding of the needs and wants of its customers and striving to not only meet, but exceed those expectations. In order to meet those needs, potential customers need to know who you are. This is where marketing, or more specifically, segmentation and target marketing, take their role in an overall corporate strategy. As all markets are heterogeneous (Baker & Hart, 2008, p. 222), attempts to please all of the people all of the time are doomed to fail. In order to effectively use marketing resources to meet a company’s goals, it is often in their best interests to develop a marketing strategy with a basis in segmentation.

Market Strategy is a term that is shown in the Essentials of Marketing (Perreault, Cannon, McCarthy). According to the book a marketing strategy specifies a target market and a related market mix. When a company comes together to set a goal and also plan what their next step and vision they want their company to have in the nearest future they use marketing strategy to pick out their target and what they will need to create to draw in new customers. Marketing strategy also focuses on one specific product and a specific market they want their produce to be available to that they believe would fly off the shelves so they could reach their goals.