Market Segmentation Definition
Segmentation marketing is a smaller set within the market as a whole. You can divide this by age, gender, price, race, interests, etc. Often times marketers try and find these market segments to find the best way to offer a certain product or service.
Market Segmentation Explained
Market segment analysis is the process that involves finding a certain group with similar ideas or characteristics that will cause them to demand the same amount of products. For example, if a company makes toys, then they are not going to want to post ads on the History Channel or ESPN. Instead, they should position its ad campaign on the Disney Channel or Nickelodeon. The target which is kids will often be tuned into one of these channels making it a prime location for toy companies to advertise.
Marketing Segmentation Example
Joe Bob is looking to maximize the potential for an ad campaign that he would like to run for his company Haughty Purses. The purses that the company makes are all custom and made from real leather. The cost to make them is high and production is slow. After some marketing segmentation analysis Joe Bob finds that the target market for the company contains the following characteristics:
– Aged 20-30
– Fashion Idealistic
– Needs to be Exclusive
Joe Bob then finds that these women read the same fashion magazines and observe fashion shows when presented on television. Therefore, Joe Bob decides to target the market segment by providing ads with beautiful models of the age group with a snob like sensibility.
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