Segmenting the Market, Target Marketing,

Segmenting the Market, Target Marketing, Products and Prices

The practice of marketing segmentation is extremely useful for all organizations as it helps them identify the target market, or the audience which is the most likely to purchase the sold items. The idea basically refers to a division of the entire audience into various groups which are united by common features. The groups are different one from another, but they have a uniform structure within. Take for instance the case of an automobile maker selling luxurious cars. They would segment the market according to the income realized by the potential customers and by the interest shown for luxurious cars.

Target marketing is somehow related to market segmentation in the meaning that market segmentation is the process which in the end leads to market targeting. To better understand, segmentation divides the entire population into various groups of individuals driven by common goals and interests. The segments are established based on the requirements the company finds necessary for an individual to finalize a purchase. The group that meets most of the characteristics is established as the target market.

Market segmenting and target marketing share some similar features, but they are however different in other perspectives. While segmentation identifies several groups, targeting allows for the identification of the most desirable group, the one that is most likely to purchase the items sold. Targeting also allows the development of the marketing strategies in a way that best addresses the selected audience.

2. After the target market has been selected, organizations search for a way to place their product onto the market in a manner that will attract the desired audience. This process is called product positioning and refers to processes such as identifying the most suitable distribution channels or developing the best advertisements that will attract the target market. Say for instance that a courier company has launched a new serviced destined especially for the needs of businessmen. They will not develop a commercial presenting peasants working the field, but one that will present rushed businessmen being saved by the new service.

An example of success achieved through product positioning is offered by PepsiCo and their Mountain Dew drink. The marketing strategy targeted the youth particularly and assimilated the product with doing something energetic, wild and something that would be appreciated by the teenagers and young adults. The extreme sports presented in the Mountain Dew commercials have attracted the interest of the audience and sales boosted.

3. There are four stages of product life: introduction, growth, maturity and decline, when the item has reached maturity, several companies will extend its life. However in most cases it is best to let the product 'die' and focus on a new one and more desirable one, there are some strategies to avoiding decline. A first one is that of reinventing the product by offering it a more modern design that will attract larger customers. Companies can also try to reduce costs as to reduce the retail price and make the item more affordable. Finally, they can improve it as to meet more needs.