Business: Market Segmentation and Target Market

4 Segmentation Categories (Customer Profile)

1. Geographic Segmentation 2. Psychographic Segmentation 3. Demographic Segmentation 4. Behavioural Segmentation

Target Market

The group that is identified for a specific marketing program.

Demographic Segmentation

This type if segmentation corresponds wit age, race, gender, religion, family size and characteristics, ethnicity, income,language, and education

What is Market Segmentation?

- Dividing a large group of consumers into smaller groups, or segments, businesses do this so, they know what products and services people are most interested in. - And these groups have a common characteristic and similar needs. - Process of classifying the customers based on the needs and wants of the customer

Why are target markets important?

All marketing strategies are directed to them. When a business does not identify a target market, its marketing plan has no focus

Consumer

The people who consume/use the product or use the service. E.g: A kid playing with a toy (To reach this target market, they may advertise this toy on kid friendly Tv shows)

Customer

The people who purchase the product/service, but does not use the product/service. E.g: A parent buying a child's toy

Behavioural Segmentation

This type of segmentation divides the market into groups based on their knowledge, and brand loyalty, and the rate of use of the product. And also the benefits.

Psychographic Segmentation

This type of segmentation involves dividing your market into segments based upon personality traits, values, attitudes, interests, hobbies, and lifestyle of the consumer

Geographic Segmentation

This type of segmentation is a common strategy when you serve customers in a particular area, or when your broad target audience has different preferences/needs based on where they are located. E.g: What country? Climate? Customer needs, based on location like urban or rural.