Segmentation and Target Marketing

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Segmentation and Target Marketing Andrew Swanson MKT/571 December 21, 2015 Steven Kraus Segmentation and Target Market Paper “Marketing segmentation and targeting are particularly important for finding customers that are the best match for a business’s products and services” (Suttle, 2014, ¶ 2) This statement speaks directly to the ideal scenario every company hopes to find; one where it’s strengths as a product and service provider are best matched with the client and consumer base most in need of these outputs. When reviewing soft drinks giant Coca Cola, we find a company that specializes in diversity; dominating the world’s beverage market with a wide variety of product choices specifically…show more content…
In contrast to this agreed-upon avoidance of a specific demographic, is Coca-Cola’s dominance in the world of large institutions, colleges/universities, businesses, or sports franchises, “Currently, the Coca-Cola Company dominates this channel, accounting for approximately 70% of all fountain beverage sales.” (Change Lab Solutions, n.d.) Psychographic Segmentation 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
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