Market Segmentation and Target Marketing
October 3, 2014
Do you know anything about the different types of marketing? Did you know that there are different subjects and topics in marketing? Honestly, I did not. I thought marketing was just the one subject. The market selected by a company as the target for their marketing efforts (i.e., target market) is critical since all subsequent marketing decisions will be directed toward satisfying the needs of these customers. But what approach should be taken to select markets the company will target?
One approach is to target at a very broad level by identifying the market as consisting of qualified customers who have a basic need that must be satisfied. For example, one could consider the beverage market as consisting of all customers that want to purchase liquid refreshment products to solve a thirst need. While this may be the largest possible market a company could hope for (it would seem to contain just about everyone in the world!) in reality there are no commercial products that would appeal to everyone in the world since individual nutritional needs, tastes, purchase situations, economic conditions, and many other issues lead to differences in what people seek to satisfy their thirst needs.
Marketing has different variety of subjects that blend together or that are entirely diverse from one another. Target marketing is the overall term for directing your marketing endeavors toward a group of people. Market segmentation is the breaking down of the market into smaller groups with the intention of promoting your product or service differently to each of them. Market segmentation allows your target marketing to become more specific; it divides broad markets--such as male, female, teen and adult--into smaller segments in which people are grouped by shared characteristics.