Market Segmentation and Targeting Strategies in Marketing

Concentrated (Niche)

A targeting strategy focused on serving only one or a few segments intensely.

Undifferentiated

A targeting strategy that ignores segments and targets the entire market with a single offer.

Core marketing strategy

Identify a specific customer segments through market research targeting the most profitable segments, and making your product to appeal their needs.

Behavioral

Segmentation based on consumers' product knowledge, attitudes, use, or response (e.g., usage rate, benefits sought, loyalty).

Demographics

Statistical data relating to the population and particular groups within it (e.g., age, income, gender).

The four major segmentation bases

The criteria or variables used to divide a market (Demographic, Geographic, Psychographic, Behavioral).

Market Segmentation

The process of dividing a large market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies.

Target Market

The specific segment or segments that a company chooses to focus its marketing efforts on.

Psychographic

The study and classification of people according to their attitudes, aspirations, and other psychological criteria.