Question

. How does Market Segmentation define possible target markets? Illustrate a best practice to segmenting product markets. Provide lots of examples.

Answer 1

Answer :-Market segmentation is the method of dividing a target market into smaller group which share same characteristics such as location, demographic, preferences and requirements. Market segmentation helps to know customers needs and how to meets those needs in best possible way.

For example :- law firms in Canada, mothers of school children, old citizens, young people etc.

(1) create strong marketing message :- when you know about a person, you can influence them easily through your marketing message. Avoid vague language, generic and can talk to mass audiences.

(2) Identify most suitable marketing tactics :-with the availability of so many tactics it's very difficult to choose best suitable tactic for targeted audiences . When you know your target audiences you can easily find the best solutions and tactics to reach them.

(3) Attract good leads :- through direct, clear messages to target audiences you can easily convert potential customers to buyers.

(4) Advertisement :- By use of ads ,one can target audiences by age, location, interests, habits etc. When you know your potential customer you can create best digital ads for them.

(5) niche market opportunity :- niche marketing is the process of finding segments of industries which have large opportunity . You can easily develop new product and services according to customers.

(6) Stay focused :- it helps to stay focus and put marketing objectives on track. It's helps us to aviod distractions.

Four types of marketing segmentation :-

* Demographic segmentation:- it is most popular market segmentation , it is the statistical information about a group of people. Such as age, sex, family size, race, religion and nationality. For example - a 20 year single women will purchase more disposable clothes than 55 year old mom of 2 children.

*Psychographic segmentation :- it is more difficult to identify than demographic segmentation as they are subjective. It require research to understand. Example - interests, attitude, beliefs, lifestyles, values, priorities etc.

Luxury car brand will be prefer by those individual who values status and quality.

*Behavioral segmentation :- behavioral segmentation focus on customer behaviour and how they acts. Examples of behavorial segmentation is spenending habits, brand preferences, buying habits and the status of the users.  

Sometimes super car industries choose target audiences which have buyed expensive cars in past 2-3 years.

*Geographical segmentation :- Geographical segmentation is the simplest one. It is based on customer geographical location. Examples :- zip code, country, city, climate, rural or urban, location etc.

Winters garment industries choosing target audiences from countries, cities, location having cold climate.