Marketing Segmentation and Target Market

Behavioral Variable

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Product Benefits

Benefits are perceived values that a consumer receives.

Psychographic Variable

Grouping consumers based on personality, traits, and lifestyle. This includes hobbies, social activities, lifestyle, interests, and attitude.

Price

Determined by what customers are willing to pay and production costs

Promotion

Involve how the goods and services are communicated to the consumer

Product

Involves the goods, services, or ideas used to satisfy consumer needs

Place

Involves the process of making the product available to the customer

Niche Marketing

Niche Marketing is a process of carving out a relatively tiny part of a market that has a very special need not currently being filled. Niche Marketing offers a unique opportunity to consumers or one that has not been offered in the past

Product Usage

Product usage is what product consumers use, how often they use them, and why. Producers keep in mind brand loyalty and that 80% of sales come from 20% percent of customers, otherwise known as the 80/20 rule.

Demographic Variable

This can be based off of the statistics about the population.The information that can be measured by age, gender, ethnicity, income, household statistics, occupation, and education.

Marketing Mix

This consists of variables controlled by marketing professionals in an effort to satisfy the target market

Geographic Variable

This includes dividing the market into physical locations, or by location, climate, and city size.

Target Market

A target market refers to people with a defining set of characteristics that set them apart as a group, and who marketers are trying to reach. Target Markets must be sizable, reachable, measurable, and behavioral. Influences include the diversity of consumer needs and wants, the organization size, the attributes of company products and/or services, the size and strength of competitors, and sales volume required for profitability.

Marketing Segmentation

Marketing Segmentation is the process of identifying groups of consumers based on their common needs.