Question

no less than 250 words in length.  As you reference information from a source, be sure to provide APA citations in text and at the end of your post.

Explain the basic concepts of identifying market segments and targets.

Answer 1

Market segmentation can be defined as a process of dividing a heterogeneous market into a smaller group of a homogenous market which consists of similar traits or demands. In order to segment a market, the potential customers are divided into different groups, for example, Generation X, Baby boomers and so on. Once this segmentation is over, the marketers target different segments with the help of different ad campaigns. This is a very difficult job rather than having a one-size-fits-all advertising ploy.

Identify the Segments:- A number of methods are present in order to divide the given market into smaller groups of customers as different people or customers have varied interest, activities or demographic traits. In order to divide the market into a segment it must possess the following characteristics:-

The size of the segment must be substantial in order to make it worth to target

It must be approachable easily

These segments must be distinctive from any other segment

The demand of the newly formed segmentation must be actionable

The segmentation must be profitable.

In order to segment and target the market, the below-mentioned steps should be adopted:-

Identification of customer’s needs and demands:- This is the first step in this process. The marketer has to identify the different distinguished demand and wants of the customers which are different from others. These customers must be clubbed together.

Creating profiles of the resulting market segments:- Once the customers with the similar traits are combined, then a profile for the groups must be created in order to provide them a unique identity.

Evaluating the attractiveness of each segment:- After creating the profile of each segment, the attractiveness of each segment must be evaluated in order to judge whether it will be profitable to target the market or not.

Selecting the target segment:- Once the profitability is decided, the selected segment must be targeted with the help of unique product or offerings.

Reference:- Statistical Concepts and Analytics Explained. (n.d.). Retrieved from statisticalconcepts./2010/03/what-is-segmentation.