Marketing Final Exam

IDENTIFYING MARKET SEGMENTS AND TARGETS

Target marketing involves three activities: market segmentation, market targeting, and market positioning.

The major segmentation variables for consumer markets are geographic, demographic, psychographic, and behavioral. These variables can be used singly or in combination.

Markets can be targeted at four levels: segments, niches, local areas, and individuals. Market segments are large identifiable groups within a market. A niche is a more narrowly defined group. Marketers appeal to local markets through grassroots marketing for trading areas, neighborhoods, and even individual stores.

More companies now practice individual and mass-customization. The future is likely to see more self-marketing, a form of individual marketing in which individual consumers take the initiative in designing products and brands.

Business marketers use all these variables along with operating variables, purchasing approaches, and situational factors.

To be useful, market segments must be measurable, substantial, accessible, differentiable, and actionable.

A firm has to evaluate the various segments and decide how many and which ones to target: a single segment, several segments, a specific product, a specific market, or the full market. If it serves the full market, it must choose between differentiated and undifferentiated marketing. Firms must also monitor segment relationships, and seek economies of scope and the potential for marketing to supersegments. They should develop segment-by-segment invasion plans.

Marketers must choose target markets in a socially responsible manner.