Segmentation and Target Market

1485 Words Jan 3rd, 2015 6 Pages
Segmentation and Target Market
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MKT/571 - Marketing
November 22, 2014 xxxxxxxxx Segmentation and Target Market
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
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Costco currently has 76.4 million paid membership cardholders, serves 41.9 million households, and employs 189.000 full and part-time individuals as of August 2014 (Costco Wholesale, 2014).
Market Segmentation
To be of value market segments must be measurable, substantial, accessible, differentiable, and actionable (Kotler & Keller, 2012). Segmentation of demographics for Costco is vast as the current product offerings include all genders, ethnicities, incomes. age groups, and social classes. When considering demographics it is important to consider the average or typical characteristics of the target market. As mentioned earlier the target market or focus for this company is supplying the small- to medium-sized business, and targets the middle- to high-end consumer with its private label brand Kirkland Signature. Categories of products currently include major appliances, furniture, electronics, luxury items, special events, seasonal items, hardware, sporting goods, housewares, apparel, health and beauty products, jewelry, tobacco, alcohol, apparel, office supplies and equipment, groceries, gasoline, photo and media services, and partners with many other companies to offer savings in many other areas such as home improvement, pharmacies, optical services and the like (Costco Wholesale, 2014).
From a psychographic point of view where activities, interests, buying habits, attitudes, and opinions are concerned, Costco…