Identifying Market Segments
Segmenting Consumer Markets
People are different and seek different ways to satisfy their needs, nearly allorganizations, whether for-profits or not-for-profits, industrial or consumer, domestic or international, must use a Market Segmentationto target marketing .A company cannotserve everyone in broad markets such as soft drinks (for consumers) and computers (for businesses), because the customers are too numerous and diverse in their buyingrequirements. This is why successful marketers look for specific market segments thatthey can serve more effectively.To successfully target markets using a segmentation approach, organizations shouldengage in the following three-step process.
Identify segments within the overall market
Choose the segment(s) that fits best with the organization’s objectives and goals
Develop a marketing strategy that appeals to the selected target market(s)
Segmentation Definition –
Dividing market into smaller groups of buyers distinct needs,characteristics, or behavior who might require separate products or marketing mixes.
Segmenting consumer markets
In segmenting consumer markets, marketers can apply geographic, demographic, and psychographic variables related to consumer characteristics as well as behavioralvariablesrelated to consumer responses.
Geographic segmentation calls for dividing the market into different geographical unitssuch as nations, states, regions, cities, or neighborhoods. The company canoperate in one or a few geographic areas or operate in all but pay attention to localvariations.Eg- Starbucks offers more desserts and larger coffee shops in south US, where customerstend to arrive later in the day and stay longer.￼