The market for any product is normally made up of several segments. A ‘market’ after all is the aggregate of consumers of a given product. There are different factors contributing for varying mind set of consumers. It is thus natural that many differing segments occur within a market. Since it is virtually impossible to cater for every customer’s individual characteristics, marketers group customers to market segments by variables they have in common. Through segmentation, the marketer can look at the differences among the customer groups and decide on appropriate strategies/offers for each group. This is precisely why some marketing gurus/experts have described segmentation as a strategy of dividing the markets for conquering them. ATTRIBUTES DESIRED FOR SEGMENTATION
Market segmentation is resorted to for achieving certain practical purpose. For this to happen, the segments arrived at must meet certain criteria such:- a)Identifiable: The differentiating attributes of the segments must be measurable so that they can be identified. To justify separate offerings, the segments must respond differently to the different marketing mixes b)Accessible: The segments must be reachable through communication and distribution channels. c)Sizeable: The segments should be sufficiently large to justify the resources required to target them. A very small segment may not serve commercial exploitation. d)Profitable:-There is no use in locating segments that are sizeable but not profitable. The segments should be relatively stable to minimize the cost of frequent changes e)Measurable: The potential of the segments as well as the effect of a specific marketing mix on them should be measurable. f)Compatible: - Segments must be compatible with firm’s resources and capabilities. BASES FOR SEGMENTATION
Markets can be segmented using several relevant bases. There is a large number of variables which leads to market segmentation. However the major four categories that a consumer market can be segmented into on the basis of customer characteristics are:- 1.Geographic Segmentation.
Since each of these bases has several sub-bases, the numbers of levels in which a market can be segmented are indeed numerous. Actually, the aim should always be to go as deep as possible in segmenting the market so that segments that are most attractive and most suited can be chosen.
There was a time when finding the best customers was like throwing darts in the dark. Target marketing changed all that...Today's savvy marketers know that finding their best prospects and customers hinges on well thought out targeted marketing strategies. Target market is a business term meaning the market segment to which a particular good or service is marketed. It is mainly defined by age, gender, geography, socio-economic grouping, or any other combination of demographics. Target marketing can be the key to a small business’s success as it makes the promotion, pricing and distribution of your products and/or services easier and more cost-effective. It needs to be clarified at the onset that marketing targeting is not synonymous with market segmentation. Segmentation is actually the prelude to target market selection. One has to carry out several tasks beside segmentation before choosing the target market. Through segmentation, a firm divides the market into many segments. But all these segments need not form its target market. Target market signifies only those segments that it wants to adopt as its market. A selection is thus involved in it.
TARGET MARKET STRATEGIES
There are several different target-market strategies that may be followed. Targeting strategies usually can be categorized as one of the following: 1.Single-segment strategy -...