Question

Target Marketing and Segmentation

Analyze marketplace dynamics impacting sales and marketing efforts.

marketing manager in your organization, you first need to educate the management team with regard to the importance of targeting and segmentation. Therefore, you have decided to prepare a 800-1000 word report to share with the decision-makers in your organization. In your report you will be addressing the following concerns:

What are the characteristics of markets and market segments?

What is the importance of market segmentation?

What are some of the criteria for successful marketing segmentation?

What are some of the common bases used to segment consumer markets?

PLEASE MAKE COPY PASTE AVAILABLE
What are some of the strategies for selecting target markets?

Your report will be shared with the rest of the organization in an attempt to educate your fellow managers on the importance of these marketing activities.

Answer 1

Markets are divided into market segments based on the characteristics of markets. Characteristics of market that the sales from each market is measurable, accessible, responsive and profitability are considered for market segmentation. The market segments help to plan the offerings of a business by developing specific products and services for a distinct market that have more chances of the product and services to be bought and used. The needs of buyers in a market segments are similar and it gives scope for designing and developing more relevant products and wide range of products by a company targeting different segments and expecting better sales. The market segmentation is done based on parameters like demographic factors, geographic factors, psychographic factors, behavioral factors. Market segmentation helps to focus and understand the needs of a particular market as the customers of different market segments have different preferences based on demographic factors like age, education, income, family size, gender. The geographic factors of segmentation include segmenting market based on their region, rural or urban customers as it can influence their purchase choices. Psychographic factors include personality and lifestyle. The behavioral factors like customer loyalty, convenience shopping, repeat purchases are also used for market segmentation.

Market segmentation helps a company to recognise marketing opportunities for its products and services and design marketing strategies accordingly. Marketing segmentation based on the given characteristics helps to understand the customers better and provide targeted products to the segments for better customer segmentation. Bases of segmentation like demographic, geographic, psychographic and behavioral factors are more likely to have similar demands and preferences so companies use these bases for segmentation as they impact buying behaviour of the customers and reflect their product choices.