Market Segments and Targets

1626 Words Oct 22nd, 2008 7 Pages
Market Segments and Targets

Many organizations are utilizing target marketing to compete more effectively. Companies focus on the customers which they can most likely satisfy, instead of scattering their marketing effort. Effective target marketing requires identifying distinct groups who have different needs and preferences which is called market segmentation and select one or more market segments to enter which is called market targeting. In addition, for each target segment, marketers must establish and communicate the distinctive benefits of the company’s market offering which is called market positioning (Kotler, 2006, p. 240).
Market segmentation is the process of grouping a market into smaller subgroups. This is derived from the
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2. Beltway Boomers – forties and fifties, college-educated, upper-middle-class homeowners married late and are still raising children. They live in comfortable suburban subdivisions and are still pursuing kid-centered lifestyles.
3. The Cosmopolitans – continued gentrification of the nation’s cities has resulted in the emergence of this segment, concentrated in America’s fast-growing metro areas. These households feature older homeowners, empty nesters, and college graduates who enjoy leisure-intensive lifestyles.
4. Old Milltowns – Just as America’s once thriving factory towns have aged, so have their residents. Old Milltowns reflects the decline of these small, once-industrial communities, now filled with retired singles and couples living quietly on fixed incomes. These home-centered residents make up on the top segments for daytime television (Kotler, 2006, p. 249).
In demographic segmentation, the market is divided into segments based on things like age, gender, income, occupation, education, religion, and race. Demographic segmenting is popular because consumer needs, wants, and usage rates and product and brand preferences are frequently associated with demographic variables (Kotler, 2006, p. 249).
Psychographics uses psychology and demographics to understand consumers. Psychographic segmentation divides consumers based on personality traits, lifestyle, or values. Individuals in a similar demographic group can have
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