Market Segments and Targets

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

Demographic Segmentation fragments the market into categories according to different demographic factors, usually with regards to the wants and needs of multiple consumer groups. The

Suburbia is America’s number one stable, and it continues to be a vital aspect of the American dream. In the United States, over 90 percent of all residents reside in the suburban areas while only 10 percent live in urban cores. As more millennials get older other options begin taking priority— like creating a family — making suburban living even more desirable. Despite many Americans living in thriving communities, families continue to struggle with housing prices, hardline credit, looking toward bad news of a demise of suburbia. For example look at San Fransisco, there are more dogs than children, or Manhattan which continues to have the lowest percentage of children in the country. Suburbia may be going forward to relative ending if we don’t try to revive some issues.

Behavior segmentation concentrates on whether on consumers buys or uses a product, along with how frequent or how much they use or consume. For example, Christmas, buying on occasion is a behavior segmentation. Benefit segmentation divides the market up based on a perceived value. An example of this is the food markers. They are creating inexpensive, nutritious meals that benefit families. Demographic segments divide the market per race, age, religion, gender, income, family size, ethnicity and income. For example, as a consumer ages their needs and wants change. Ethnic segmentation designs and advertise to a certain race or culture. An example would be companies based in Mexico are moving north to the United States because of the growing population of Hispanics in the United States. Psychographic segmentation divides the market based on personality traits, attitudes, values, life styles and interest. Marketing survey would be an example of

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)

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.

What is Market Segmentation? According to Investopedia (n.d), market segmentation is a term used in marketing that refers to the aggregating of a potential buyer into groups, or segments, that share common needs and would respond similarly to a particular action in marketing. By utilizing market segmentation it enables Victoria’s Secret to target different categories of consumers who recognize the full value of certain products and services differently from one another. Furthermore, market segmentation is an extension of market research for the purposes of identifying targeted groups of consumers in order to tailor products and branding in a way that it is attractive to that group. There are three general criteria used to identify different market segments: homogeneity, distinction and reaction (Investopedia, n.d).

In business marketing, market segmentation and targeting specific markets aids organizations by reducing the risks involved in decisions of how, where, when, and with whom the brand, product, or service will be advertised, directed, or promoted to. Positioning the product or service to the accurate target while controlling the marketing budget are tactics used by marketing professionals to assure reaching the largest target group and controlling costs (Boundless, 2014). Attracting the right customer is the ultimate objective of targeting specific markets by directing the research and efforts in a manner

Target marketing allows you to reach, create awareness in, and ultimately influence, that group of people most likely to select your products and services as a solution to their needs

With psychographic segmentation, we use psychology and demographics to better understand consumers. Buyers are divided into different groups on the basis of psychological/personality traits, lifestyle

Market segmentation is a process of segregating the market into different smaller groups. A market comprises of large number of heterogeneous customer base with distinct tastes and preferences. A marketer needs to classify and segment people into smaller homogeneous groups basis similar characteristics, tastes, preferences, likes, etc. so that they will respond in a similar fashion to a particular product launched for that segment. Thus, market segmentation can be defined as, “the sub-dividing of a market into homogeneous subsets of customers from the

Psychographics is the science of using both psychology and demographics to understand consumers (Kotler & Keller, 2011). Psychographics divides the consumers into different groups on the basis of psychological/personality traits, lifestyle, or values (Kotler & Keller). The most popular commercial psychological program is Strategic Business Insight’s VALS system, it signifying values and lifestyles, classifies U.S. adults into eight groups based on answers to a questionnaire featuring 4 demographic and 35 attitudinal questions (Kotler & Keller).

Furthermore, market segmentation is an extension of market research for the purposes of identifying targeted groups of consumers in order to tailor products and branding in a way that it is attractive to that group. There are three general criteria used to identify different market segments: homogeneity, distinction and reaction (Investopedia, n.d).

It is not possible for a marketer to have similar strategies for product promotion amongst all individuals. Kids do not get attracted towards products meant for adults and vice a versa. Every segment has a different need, interest and perception. No two segments can have the same ideologies or require a similar product.Target Marketing refers to a concept in marketing which helps the marketers to divide the market into small units comprising of likeminded people. Such segmentation helps the marketers to design specific strategies and techniques to promote a product amongst its target market. A target market refers to a group of individuals who are inclined towards similar products and

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.