MKT - Target Marketing [LESSON]

Target Marketing

Everything a business does should be focused on the customer. In this lesson, we will learn how market segmentation and target market can determine business success.

The 4Ps | Knowledge Point

In the last lesson, you learned about the marketing mix. When evaluating the four Ps of the marketing mix, it is important to consider the customer. Everything the company does should relate back to the customer and what might appeal to them. The potential customer is also called the target market. In other words, who are the customers that a business would like to reach with its product or service?

Successful businesses understand the importance of the target market and focus all their marketing strategies on defining the target market while creating an appealing product the customer can easily find and would be willing to purchase.

The 4Ps | Activity

See if you can identify these popular companies using only a description of their target markets.

Market Segmentation | Knowledge Point

A target market can be defined based on many different factors and characteristics. This is where market segmentation comes into play. Market segmentation is the process of dividing a larger market into smaller groups. There are many different ways a market can be segmented, but the most common types of segmentation are:

Demographic segmentation | is usually the easiest and most used form of segmentation. This might include age, income, marital status, gender, religion, etc. Demographic segmentation is used to describe who customers are.

 

Psychographic segmentation | relates to how a person feels about certain topics and also their beliefs. Psychographic segmentation usually defines why individuals might buy something. Psychographic segmentation might include religious beliefs, opinions, attitudes, political affiliation, lifestyle, etc.

behavioralBehavioral segmentation | defines how consumers interact with specific brands or products and defines when they decide to purchase and how they use the products. Behavioral segmentation might include usage frequency, brand loyalty, benefits needed, as well as occasion or timing-based, etc.

geographicGeographic segmentation | details the customer’s location or where they live. This might include their country, state, county, town, community, etc.

 

Questions to ask about your target market to get to know them!

Marketing Segmentation asks many questions of the target marketing.

Market Segmentation Self-Assessment | Practice Activity

Take a moment to reflect on what you have learned about Marketing Segmentation, select the category, then click the arrow for the next word.

Reflection

Successful businesses understand the importance of a well-defined target market. Demographic, psychographic, behavioral, and geographic segmentation are all ways that a target market can be divided. After the target market has been segmented and defined, all other marketing strategies should relate to the target market.

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