Market segmentation and target market selection

Segmentation refers to a process of bifurcating or dividing a large unit into various small units which have more or less similar or related characteristics. Market Segmentation Market segmentation is a marketing concept which divides the complete market set up into smaller subsets comprising of consumers with a similar taste, demand and preference. A market segment is a small unit within a large market comprising of like minded individuals. One market segment is totally distinct from the other segment.

Market segmentation and target market selection

Promotion The firm attempts to generate a positive response in the target market by blending these four marketing mix variables in an optimal manner.

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Product The product is the physical product or service offered to the consumer. In the case of physical products, it also refers to any services or conveniences that are part of the offering.

Product decisions include aspects such as function, appearance, packaging, service, warranty, etc. Price Pricing decisions should take into account profit margins and the probable pricing response of competitors.

Pricing includes not only the list price, but also discounts, financing, and other options such as leasing.

Market segmentation and target market selection

Place Place or placement decisions are those associated with channels of distribution that serve as the means for getting the product to the target customers.

The distribution system performs transactional, logistical, and facilitating functions. Distribution decisions include market coverage, channel member selection, logistics, and levels of service. Promotion Promotion decisions are those related to communicating and selling to potential consumers.

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Since these costs can be large in proportion to the product price, a break-even analysis should be performed when making promotion decisions. It is useful to know the value of a customer in order to determine whether additional customers are worth the cost of acquiring them.

Promotion decisions involve advertising, public relations, media types, etc. A Summary Table of the Marketing Mix The following table summarizes the marketing mix decisions, including a list of some of the aspects of each of the 4Ps. Summary of Marketing Mix Decisions Product.Mosaic® USA Your customer segmentation solution for consistent cross-channel marketing.

White Paper Resources "Customer Segmentation Fundamentals" Discover the six steps to creating customer segmentation profiles and using them to understand market . Feb 06,  · B. Use a funnel approach. For some CEOs, it might be helpful to think of the market selection process as a multiple staged funnel.

For example, your first bucket might be gender. Target market represents a group of individuals who have similar needs, perceptions and interests.

They show inclination towards similar brands and respond equally to market fluctuations. Individuals who think on the same lines and have similar preferences form the target audience. Target market. PowerPoint Presentation: 1- 12 Table Demand States and Marketing Tasks 1. Negative demand A major part of the market dislikes the product and may even pay a price to avoid it—vaccinations, dental work, vasectomies, and gallbladder operations, for instance.

The process of gathering, analyzing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential.

Market segmentation - Wikipedia