Market Segmentation

Note that you, as the marketer, do not have unlimited resources. This means that you cannot say that "everyone" is in your target market. You wouldn't know where to begin to focus your promotional efforts, nor where to ship the product. In order to be effective, you must segment the market.

The value of segmentation for both the company and the end user can be broken down as such:

For the customer:

• Provides greater choice of products/services
• Products/services should more closely match the needs of consumers

For the company:

• Better marketing planning as reactions to marketing activities can be predicted
• It helps organizations to identify prospects who are most likely to buy

Assignment Instructions:

• Research your target market
• Write a description of the target audience, using these segmentation variables -
• Demographics (age, gender, marital status, income, level of education, etc.)
• Psycho-graphics (interests, attitudes, personality, values and lifestyles)
• Geo-graphics (get to the city level)
• Behaviors (level of product use, i.e., light, moderate, heavy users)
• Reflect on which variable impacts consumer purchasing of your product the most.