Sementation and Target Market Paper

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Segmentation and Target Market Paper Walmart Corporation Upon opening a business, a company must decide where to place the business and how to market the company. This is not an easy task if several businesses of the same industry are located in the same neighborhood. Before the company can open, a new business must choose what market they want to reach and the best way to reach them. The company must also determine the psychographic and behavioral characteristics of each market the company is trying to reach. The following is information on how Walmart Corporation chooses their geographic, demographic, psychographic, and behavioral segments when the company places a new store in a specific neighborhood. Walmart History The first…show more content…
Under these groups, brand aspirationals are individuals with low income who like brand name products such as KitchenAid or Black & Decker. Price-sensitive affluents are individuals with higher incomes who love deals and get a brand name for lower prices. Value-priced shoppers are those of lower income and do not have extra funds to spend, so they are looking for the lowest price possible (Ryan, 2007). Behavioral Segmentation Behavioral segmentation is the process of placing consumers in different categories on the basis of knowledge of, attitude toward, use of, or response to a product (Kotler & Keller, 2012). To successfully market a specific product Walmart will want to keep in mind the three core groups that have been created. According to Ryan, all product decisions the company makes will be based on the three core groups (2007). Feedback from these groups will help the company determine what products that sell best and those products the company can eliminate because they do not sell. Positioning Statement The success of Walmart is paramount, but the company was not without customer loyalty issues. According to Kotler and Keller, a brand position is the “act of designing a company’s offering and image to occupy a distinctive place in the minds of the target market” (2012, p. 276). The company’s original positioning statement for the longest time was

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