Essay on MARKET TARGET AND MARKET SEGMENTATION

The last point to develop, and not least of all, is related to the Meta Market, which as salespeople, producers or service providers we want to direct and remain, through their segmentation and positioning of products.

I will define the Meta Market, as a set of people and organizations with needs, desires and possibilities to satisfy them. However, these wishes and needs are not the same, which is why the company must analyze its market with the purpose of adapting its offer and its marketing strategies to the needs of the latter.

For an organization to do the above, it needs market segmentation, which starts from the premise that it is heterogeneous and is intended to be divided into smaller groups or homogenous segments that can be chosen as the companies’ Target Market. Put another way, the segmentation involves a process of differentiation of the needs and desires within a market and its satisfaction.

Segmentation is also an effort to improve the accuracy of a company’s marketing. It is an aggregation process: To group people with similar needs into a market segment.

Good segmentation should result in subgroups or market segments with the following characteristics:

Intrinsically homogeneous or similar to each other. Consumers in the segment should be as close as possible to their likely responses to the variables of the marketing mix and its segmentation dimensions.

Heterogeneous with each other: the consumers of several segments should be as different as possible, regarding their probable response to the variables of the marketing mix.

Quite large: to be able to guarantee the profitability of the segment.

Operational: To identify the customers and choose the variables of the marketing mix. The demographic dimension must be included in order to make decisions regarding the place and promotion.

 

BENEFITS OF MARKET SEGMENTATION

 

It allows the identification of the needs of customers within a sub-market and the most effective design of the marketing mix to meet them.

Medium-sized companies can grow faster if they get a strong position in the specialized segments of the market.

The company creates a better product or service offer and puts the appropriate price for the target audience.

The selection of distribution and communication channels is greatly facilitated.

The company faces fewer competitors in a specific segment.

New growth opportunities are generated and the company gains a considerable competitive advantage.

Now, I will briefly explain how a segmentation of the market is performed, that is, the steps that must be followed in its determination:

The first is the Study, which examines the market to determine the specific needs satisfied by current offers, those that are not and those that could be recognized. Exploratory interviews are conducted and group sessions are organized to better understand the motivations, attitudes and behaviors of consumers. Collect data on the attributes and importance given to them, brand awareness and brand qualifications, usage patterns and attitudes towards the product category; As well as demographic, psychological, and so forth.