Identifying Market Segments and Targets
Sothern New Hampshire University
Identifying Market Segments and Targets
The segmentation of the market helps the marketers to identify the customers who share the same needs and wants (Kotler, & Keller, 2012). There are many different levels of market segmentation such as, geographic, demographic, psychographic, and behavioral segmentation (Kotler, & Keller, 2012). The geographic segmentation used when the marketers segment the market by focusing on a specific geographic area (Thomas, 2007), demographic segmentation concentrates on gender, age, housing type, income, and the educational level (Thomas, 2007), the psychographic segmentation is studying the customers behaviors, emotions, beliefs, and lifestyle (Thomas, 2007). Behavioral segmentation divides the consumers to a specific group based on the way they respond, use, and know the product (Riley, 2012). According to Kotler, & Keller (2012), not all segmentation schemes are useful, and to be useful, the segments must be measurable, profitable enough, accessible, differentiable, and actionable. The market targeting is the second step after market segmentation and before market positioning.
According to Kotler, & Keller (2012), the geographic segmentation divides the market to nations, states, regions, counties, and cities, for instance, the company could choose a specific nation or states to market their brands. Many Chinese restaurants choose a specific geographic area to reach the concentration of force (Thomas, 2007). Demographic Segmentation
The age, gender, income, education, religion, race, generation, nationality, family size, social class, and occupation, is very important information to the marketer to highlight the customer needs and wants (Kotler, & Keller 2012). The race and the religion are very important to identify the consumer trend and needs, and it can be easy to identify by the first name and family name, according to Webber (2006), the people from different cultures have name and family name, and every culture common names are different than the other, for instance, the Asian names are completely different than Muslims names, and the Hispanic names are different from both. Figure (1) illustrates how can we use the names to identify the consumer’s culture or race. Since the name reflects the person culture, belief, and race it would be useful information to the company to associate the individual trend and needs (Webber, 2006). Psychographic Segmentation
The psychographic (lifestyle) segmentation concentrates on customer value, behavior, beliefs, emotion, and interests (Thomas, 2007), according to Kotler, & Keller (2012), psychographic is the science that gathers the psychology and demographic to understand the customers. Strategic Business Insight is one of the commercial classification systems that measure and study psychographic, the SBI helps their clients to identify new opportunities based on market insight (SBI, 2015). Behavioral Segmentation
The way the customers respond to the product, how they use it, and what they know about the product, in other words, dividing population based on their behavior is behavioral segmentation. The behavioral segments can group customers in terms such as occasions, user stats, usage rate, buyer-reading stage, and loyalty status (Kotler, & Keller 2012). Occasions. According to Kotler, & Keller (2012), the occasions can determine temporary aspects of a customer’s life. The marketers can highlight the buyers based on the occasions, for instance, the occasions of business, vacation, or family, all of them need a transportation such as air travels (Kotler, & Keller 2012). User status. The products in general have users, non users, potential users, first time users, and regular users (Kotler, & Keller 2012). The way to attract a non users or potential users is to understand...
References: Kotler, P., & Keller, K. L. (2012). Marketing management. prentice hall: upper saddle River, NJ.
Riley, (2012). Market segmentation , behavioral segmentation. http://www.tutor2u.net/business/marketing/segmentation_bases_behavioural.asp
Small business tool kit. Market analysis. http://toolkit.smallbiz.nsw.gov.au/part/3/10/49
Thomas, W., (2007). Market Segmentation. http://www.decisionanalyst.com/publ_art/marketsegmentation.dai
Webber, (2006). Using names to segment customers by cultural, ethnic or religious origin. https://www.mrs.org.uk/pdf/27_11_06_richard_webber.pdf
USING NAMES TO SEGMENT CUSTOMERS
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