Identifying market segments and targets
Marketing concepts -- Chapter 8
Target marketing involves three activities:
Markets can be targeted at four levels:
More companies now practice individual and Mass customization. The future is likely to see more self marketing, a form of marketing in which individual consumers take the initiative and designing products and brands.
There are two bases for segmenting consumer markets:
Major segmentation variables for consumer markets are geographic, demographic, psychographic, and behavioral. These variables can be used singly or in combination.
Business marketers use all these variables along with operating variables, purchasing approaches, and situational factors.
To be useful, market segments must be measurable, substantial, accessible, differentiable, and actionable.
A firm has to evaluate the various segments and decide how many and which ones to target:
If it serves the full market, it must choose between differentiated and undifferentiated marketing. Firms must also monitor segment relationships, and seek economies of scope and the potential for marketing to super segments. They should develop segment by segment and invasion plans. Marketers must choose target markets in a socially responsible manner.
Marketing concepts -- Chapter 8
Target marketing involves three activities:
- market segmentation
- market targeting
- market positioning
Markets can be targeted at four levels:
- segments -- large, identifiable groups within a market
- niches -- narrowly defined groups
- local areas -- grassroots marketing for treating areas, neighborhoods, and individual stores
- individuals
More companies now practice individual and Mass customization. The future is likely to see more self marketing, a form of marketing in which individual consumers take the initiative and designing products and brands.
There are two bases for segmenting consumer markets:
- consumer characteristics
- consumer responses
Major segmentation variables for consumer markets are geographic, demographic, psychographic, and behavioral. These variables can be used singly or in combination.
Business marketers use all these variables along with operating variables, purchasing approaches, and situational factors.
To be useful, market segments must be measurable, substantial, accessible, differentiable, and actionable.
A firm has to evaluate the various segments and decide how many and which ones to target:
- a single segment
- several segments
- specific product
- a specific market
- full market
If it serves the full market, it must choose between differentiated and undifferentiated marketing. Firms must also monitor segment relationships, and seek economies of scope and the potential for marketing to super segments. They should develop segment by segment and invasion plans. Marketers must choose target markets in a socially responsible manner.
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