By Benson Mmari
Market:
Is an
individual/organization/institution who are willing able to buy our product and
services . Physical place is called market place.
Marketing:
Is the performance of business
activities that direct the flow of goods and services from producer to customer
or user.
Segmentation
market:
The process
of defining and subdividing
a large homogenousmarket into
clearly identifiable segments
having similar needs,
wants, or demand characteristics.
Its objective
is to design
a marketing
mix that precisely matches the expectations
of customers
in the targeted segment.
Target market:
Target marketing is about attracting customers who will buy what you’re
selling.
Of course, there’s more to it than that. After all, you’re not a magnet and
this isn’t The Secret—in order to target market
effectively, you’ll need to know exactly who purchases your
products and exactly how to reach them. And acquiring that kind of
knowledge requires some research and planning on your end.
The evolution of target marketing
Target marketing is the most current method of marketing to consumers based
on research into their interests, hobbies, and needs, and it didn’t spring from
nothing. Before we got here, advertisers and marketers were using cohort
marketing, and before that they were using generational marketing. Target
marketing is essentially a refinement of these ideas
Marketplace segmentation is actually
broadly defined as becoming a complex process composed in two primary stages:
– Identification of wide, big
markets
– Segmentation of these types of
marketplaces in order to select the most suitable target markets and create
Marketing blends accordingly.
Everyone inside the Marketing world
understands and talks of segmentation though not many genuinely understand its
fundamental mechanics, therefore failure is simply around the part. What causes
this? It’s been documented that most entrepreneurs fall short the segmentation
exam and begin with a narrow mind and a lot of myths this kind of as “all teenagers
are rebels”, “all seniors ladies purchase the exact same cosmetics brands” and
so on. There are lots of measurements to be looked at, and discovering all of
them is certainly an exercise of creativeness.
The most generally used model of
marketplace segmentation includes 6 actions, each of all of them designed to
motivate the internet marketer to include a creative approach.
Step
One – Define the market
The first step in creating market
segments is to clearly define the market of
interest. As discussed in the markets, sub-markets and product-markets section, it is important not to define a market too
broadly.
For instance, let’s assume that you
are looking to segment the market for a firm that operates a chain of book
stores. It would be too top-level and too awkward to define the market as all
retailing consumers, as it is unlikely to lead to any meaningful segmentation.
As shown in the following diagram,
we need to split out the overall broad market (retailing) into its various
sub-markets (such as, supermarkets, specialty stores and so on).
We can also further define some of
these sub-markets (if they are still too broad) as is shown for specialty
stores below.
And finally, we need to determine
the market’s geographic boundaries. It this case a list of possibilities has been
provided in the figure.
Step
Two – Create market segments
Now that we have defined the
product/market clearly (which we will refer to as ‘the market’ from this point
on), we need to determine what types (segments) of different consumers form
that overall market. To do this, we need to review the list of segmentation bases/variables
and choose two or three of those variables that we think (or know from market
research) affect the purchasing behavior of book consumers.
Note:
When segmenting a business market, please see segmentation
bases for business markets instead of the above link.
For this market, let’s pick three
different variables from the list, as per the following table. These particular
segmentation variables have been chosen as they are likely to influence the
purchasing behavior of books and, therefore, should lead to the identification
of interesting segments.
|
Main
Category
|
Segmentation
Base
|
Example/s
|
|
Demographic
|
Age
group
|
Pre-teens, teens, young adults,
older adults
|
|
Behavioral
|
Shopping
style
|
Enjoys shopping, functional,
avoids
|
