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Market Segmentation and Target Market Selection

Autor:   •  November 9, 2012  •  Essay  •  659 Words (3 Pages)  •  1,063 Views

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Market Segmentation and target market Selection:

It is one of the most fundamental concepts in marketing. It is the process of splitting customers, or potential customers, in a market into different groups, or segments, within which customers share a similar level of interest in the same or comparable set of needs satisfied by a distinct marketing proposition. It is the division of the market into relatively homogeneous segments of customers; each of these groups, to be fully satisfied, needs its own marketing mix or product.

Marketing proposition or Marketing Mix are four marketing activities- product, distribution, promotion, and pricing- that a firm can control to meet the needs of customers within its target market. Segmentation allows marketing mix to be more closely matched to specific needs, thus improving efficiency and effectiveness of resource utilization.

Marketing Mix Variables:

Product- the goods, services, or ideas that satisfy customer needs: Fruit Salad with different flavors (chocolate-vanilla-ice cream), syrups, and dressings.

Distribution- the ready, convenient, and timely availability of product: American University Campus in New Cairo.

Promotion- is one of the key elements of the marketing mix. It informs customers about the product.

Ways to inform customers about the fruit bar:

• Email (portal)

• Social media applications such as Facebook or Twitter

• Blogging

• Mobile phone promotions using technology such as Bluetooth

• YouTube

• Flyers

Pricing- Determining the total cost, and then pricing product or service competitively in a way that guarantees profit.

Price: 20 pounds per one.

Market segmentation is about understanding the needs of customers and, therefore, how they decide between one offer and another. This insight is used to form groups of customers who share the same or very similar value criteria. A company is then able to determine which groups of customers it is best suited to serve and which product and service offers will both meet the needs of its selected segments and outperform the competition.

Target Market is a part of market Segmentation. It is a specific group of customer on whom an organization focuses its marketing efforts. It can be large

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