MARKET SEGMENTATION AND THE MARKETING
MIX: Determinants of Campaign Strategy Benefits of Market Segmentation
Market Segmentation and Target Market
What is Market Segmentation?
- Is a marketing term that refers to aggregating
prospective buyers into groups or segments with
common needs and who respond similarly to a
marketing action.
What is Target Market?
- Group of people most likely to buy a product
Target Market and Market Segmentation Market
segmentation- Dividing a groups of customers, or
“segments”
Types of Market Segmentation
Demographic Segmentation
✓ It t refers to splitting up audiences based on
observable, people based differences.
✓ Relatively easily accessible and low-cost to
obtain
Demographic Segmentation
✓ A customer locations can help you better
understand their needs and enable you to send out
locations-specific ads. ✓ country, state, zip code,
climate, population density
Behavioral Segmentation
✓ It studies the behavioral traits of consumers,
which include their knowledge of, attitude towards,
use of, response to a product, service promotion,
or brand.
✓ 4 Major types to look up (Purchasing and Usage
Behavior, Occasion Purchasing, Benefits Sought,
and Customer Loyalty)
Psychographics Segmentation
✓ Similar to Demographic but deals more with
characteristics that are more mental and emotional
✓ Personality Traits, Interests, Beliefs, Values,
Attitudes, Lifestyle
How to Implement Market Segmentation?
Step 1. Define your market
Step 2. Segment your market
Step 3. Understand your market
Step 4. Create your customers segments
Step 5. Test your marketing strategy
1. Increased resource efficiency
2. Stronger brand image
3. Greater potential for brand loyalty
4. Stronger market differentiation
5. Better targeted digital advertising
Marketing Mix
✓ The combination of product offering used to
reach the target markets for the organization. It is
an optimum combination of all marketing
ingredients that help company realize its goals and
objectives.
✓ It is a mix of internal controllable marketing
variables – Product, Price, Place, and Promotion,
that best meet the needs of targeted customer.
✓ The ideal marketing mix will vary depending on
the target market, and it's crucial to adapt the
marketing mix to the target audience to reach
maximum potential for profitability.
4P’s
1. Product – should satisfy customer needs or
desire and fill a void in the marketplace or offer
unique experience .that spikes demand.
2. Price – should reflect current market trends and
not be too high or low.
3. Place – where the product can be purchased
should be suitable for the product and target
audience.
4. Promotion – should send the right message at
the right time.