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Development of Target Market Segment

8/5/2017

Development of Target Market Segment

Firstly, I run a bakery offering cupcakes, and cake pops through the online store as well as a retail store that supplies cakes. It mainly focuses on providing convenient services to customers by incorporating an on- demand model. It is the best for business since most customers make orders online through the website and by use of a mobile application. Therefore, to reach out to all clients through online platforms and retails shops, I will consider both the primary and secondary target market segments highlighted as follows.

The Primary target market segment: The business targets youths aged between 18-40 years as its primary market segment particularly for the following reasons. Firstly, there are many youths as compared adults, and they prefer shopping online for convenience. Secondly, the market accounts for the largest volumes of sales recorded and thus earning the business sufficient revenue. Lastly, the market shares common features and behaviors generated from the large group of buyers. In line with (Dolnicar & Leisch, 2017) it makes it possible to study the market trend and thus to produce high-quality products that meet the markets’ quality expectation.

The Secondary target market segment: Apart from the primary target market segment mentioned above, the business considers adults and the rest of youths who make purchases from retail shops as its secondary target market segment for the following reasons. First, the business would command the largest market possible to make it profitable. Secondly, buyers in the secondary market segment have their behaviors different from those in the primary target market (Cross, Belich & Rudelius, 2015). Lastly, the business intends to attract them through discounts. It aims at including them in the primary market segment in future to increase sales volume.

References

Cross, J. C., Belich, T. J., & Rudelius, W. (2015). How marketing managers use market segmentation: An exploratory study. In Proceedings of the 1990 Academy of Marketing Science (AMS) Annual Conference (pp. 531-536). Springer, Cham.

Dolnicar, S., & Leisch, F. (2017). Using segment level stability to select target segments in data-driven market segmentation studies. Marketing Letters, 1-14.