Marketing Segmentation and Strategy

Marketing Strategy

• A marketing strategy outlines how to plan and coordinate marketing activities to achieve organizational goals.

Market and Market Segments

• A market consists of all consumers available for a business to serve by selling products or services.
• Markets are composed of many segments, each containing people with one or more similar characteristics.

Factors Used to Segment a Market

• Necessities, convenience items, and luxuries
• Age, gender, education, occupation, income, and geographic location
• Interests, hobbies, values, beliefs, religion, attributes, leisure activities, and preferences and habits
• Lifestyle and buy behavior pattern

Behavioral Segmentation

• Factors include previous experience with products, sources of information used, and loyalty.

Selecting Target Markets

• The target market consists of people with common important needs.
• People outside the target market should have significant differences from those in the target market.
• The company needs adequate information about the target market.
• It is essential to understand the important wants and needs of the target market and their buying behavior.

Product and Mix Elements

• The basic product is the most important part of the product mix element.
• Product features can be added to a basic product to differentiate it from competitors.
• Associated services, such as maintenance contracts, can be offered.

Brands and Image

• A brand is a unique name, symbol, or design that identifies a product or service.
• Brand names can be a crucial factor in purchasing decisions.

Guarantee and Warranty

• A guarantee or warranty provides assurance of a product's quality and value.
• If a product does not meet standards, customers can get a refund.

Packaging

• Packaging provides protection and security for products during transportation and storage.
• It also provides information about the product.
• Packaging is particularly important for impulse goods, candy, toys, and low-cost items, as well as for emergency goods such as towing services and umbrellas.

Understand how to develop a marketing strategy and segment a market based on various factors. Learn how personal characteristics affect consumer wants and needs, and how to identify market segments.