Segmentation and Target Market Paper
Segmentation and Target Market PaperJonathan GraceMKT/571October 21, 2014Dr. Johnny MorrisSegmentation and Target Market PaperThis plan was put into in 1936, establishing the Government Employees Insurance Company, the company known and respected today as GEICO. GEICO was primarily directed toward federal employees and certain groups of enlisted military officers. Lillian Goodwin actively marketed the company to this group of consumers and within a year, GEICO had written over 3,700 policy holders and employed 12 staff members.
GEICO and Demographic Segmentation
In the midst of the most market segmentation factors, demographics take part in an critical role in an organization upcoming marketing strategies. In demographic segmentation, we divide the market on variables such as age, family size, family life cycle, gender, income, occupation, education, religion, race, generation, nationality, and social class (Kotler and Keller, pg. 216, 2012).
The most commonly well thought-out demographics segmentation for insurance companies are the need for reliable quality, ease of purchase, continuing use, stress-free environment and ease of access when service is needed. This is what the consumers purchased decisions are determined by. When coming up with a decision on where to put a new location for the business, the information will bring about where your target market is located, for this, the demographics is an exceptional tool. Demographics give a widespread of who are your customers, where they are to be found at, and what they do.
Although GEICO may have figured out their demographics group, consumers in that grouping may still have set apart opinions of the benefits or value of the product you plan to sale. It is these opinions that inspire consumers to buy goods and services for not the same reasons. These reasons are identified as psychographics. Customer psychographics provide more complexity information about the target customers.
GEICO and Demographic Segmentation
In the midst of the most market segmentation factors, demographics take part in an critical role in an organization upcoming marketing strategies. In demographic segmentation, we divide the market on variables such as age, family size, family life cycle, gender, income, occupation, education, religion, race, generation, nationality, and social class (Kotler and Keller, pg. 216, 2012).
The most commonly well thought-out demographics segmentation for insurance companies are the need for reliable quality, ease of purchase, continuing use, stress-free environment and ease of access when service is needed. This is what the consumers purchased decisions are determined by. When coming up with a decision on where to put a new location for the business, the information will bring about where your target market is located, for this, the demographics is an exceptional tool. Demographics give a widespread of who are your customers, where they are to be found at, and what they do.
Although GEICO may have figured out their demographics group, consumers in that grouping may still have set apart opinions of the benefits or value of the product you plan to sale. It is these opinions that inspire consumers to buy goods and services for not the same reasons. These reasons are identified as psychographics. Customer psychographics provide more complexity information about the target customers.
References: Objectives: View more »Expand viewKotler, P., & Keller, K. L. (2012). Marketing management (14th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.