Home / Business / Budgeting / WHAT is the market segment and the target market

WHAT is the market segment and the target market


What is the market segment and target market? </a>

Segmentation of the market and definition of target segments is one of the key tasks of marketing.

This allows us to concentrate the company's efforts on a strategically important line of business and improve the effectiveness of marketing policy.

Segmentation of the market

Segmentation of the market is an indispensable elementStrategic marketing. Segmentation of the market is the process of dividing the market into segments (or groups) of consumers by certain criteria. Its goal is targeted regulation and implementation of targeted marketing policy.
As a segment of the market is a homogeneousA group of consumers, similarly reacting to marketing actions (advertising, sales channels). As objects for market segmentation, not only consumer groups serve, but also groups of products and enterprises (competitors).
Segmentation is carried out according to certainCriteria, by which are meant the characteristics by which consumers differ or are grouped together. It can be geographical (region of residence, population), demographic (age, sex), psychographic (lifestyle, personal qualities) and socio-economic (education, income level, profession). Consumer sectors (oil and gas, metallurgy, etc.), the size of enterprises or the form of ownership of enterprises can serve as criteria for segmenting consumers in industrial markets.

Target market

Segmentation of the market is made precisely forAllocation of the target market. It is a homogeneous group of people united by common signs. Absolutely any characteristics can act as unifying signs. For example, as a target audience, men between the ages of 30 and 35, actively traveling and playing sports, can perform.
The target market can also be defined asThe potential market of the firm. The main distinguishing feature of the target audience is that they are more likely to purchase the company's products and have sufficient resources and capabilities for this.
When determining the target market, a number ofCriteria. In particular, its size and potential capacity are analyzed. The latter implies not the real volume of consumption, but the potentially possible, maximum sales volume. It is important to assess the overall prospects of the segment, as well as the availability of points for growth in consumption.
Another criterion is the availability of the segmentFor the targeted impact of the company, i.e. The opportunity to establish sales for this group of consumers and the cost of supply. Take into account and the state of competition in this segment of the market, preference is given to unsaturated market niches. Of course, we can not ignore the profitability or profitability of the market segment when choosing the target audience.

WHAT is the market segment and the target market Was last modified: June 20th, 2017 By Juudyuqf
It is main inner container footer text