Market segmentation and targeting are the processes of identifying potential customers, choosing which customers to pursue, and creating value for those customers. This process is achieved through the segmentation, targeting, and positioning (STP) process. Market segmentation is the process of dividing a target market into subgroups of consumers with common characteristics and priorities. These characteristics can be based on demographics, geography, behavior, or psychographic factors. The most common form of segmentation is demographic, which divides customers by age, gender, income,... Show more Market segmentation and targeting are the processes of identifying potential customers, choosing which customers to pursue, and creating value for those customers. This process is achieved through the segmentation, targeting, and positioning (STP) process. Market segmentation is the process of dividing a target market into subgroups of consumers with common characteristics and priorities. These characteristics can be based on demographics, geography, behavior, or psychographic factors. The most common form of segmentation is demographic, which divides customers by age, gender, income, occupation, marital status, social class, religion, or education. Here are some types of market segmentation: Behavioral segmentation: Divides a market based on consumer behavior such as buying habits, product usage, and brand loyalty. For example, younger buyers may tend to purchase bottled body wash, while older consumer groups may lean towards soap bars. Psychographic segmentation: Divides consumers based on psychological traits that influence their purchase patterns, such as personality traits, values, or lifestyles. For example, large markets like the fitness market use psychographic segmentation when they sort their customers into categories of people who care about healthy living and exercise. Benefit segmentation: Divides consumers into groups based on the benefits they seek from consuming something, such as entertainment, socialization, or self-improvement. Once a market is segmented, the organization can develop specific marketing strategies and programs to target these segments. Show less
Market segmentation and targeting are the processes of identifying potential customers, choosing which customers to pursue, and creating value for those customers. This process is achieved through the segmentation, targeting, and positioning (STP) process.
Market segmentation is the process of dividing a target market into subgroups of consumers with common characteristics and priorities. These characteristics can be based on demographics, geography, behavior, or psychographic factors. The most common form of segmentation is demographic, which divides customers by age, gender, income, occupation, marital status, social class, religion, or education.
Here are some types of market segmentation: Behavioral segmentation: Divides a market based on consumer behavior such as buying habits, product usage, and brand loyalty. For example, younger buyers may tend to purchase bottled body wash, while older consumer groups may lean towards soap bars. Psychographic segmentation: Divides consumers based on psychological traits that influence their purchase patterns, such as personality traits, values, or lifestyles. For example, large markets like the fitness market use psychographic segmentation when they sort their customers into categories of people who care about healthy living and exercise. Benefit segmentation: Divides consumers into groups based on the benefits they seek from consuming something, such as entertainment, socialization, or self-improvement.
Once a market is segmented, the organization can develop specific marketing strategies and programs to target these segments.
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