1. What is a target market? How do you segment a market to identify a target market? What is the value of identifying the optimal target market for a product or service?
2. How does demographic and geographic data collection differ from psycho-graphic and life cycle? What is the value of each? Provide examples.
Target Market and Segmentation
Target market is a group of people and customers that are focused by an organization to sale its products or services. In this process, a special group of people is aimed or focused by the organization to enhance its sales and profitability (Drozdenko & Drake, 2002). Target market is adopted by an organization for a particular product. In this, many strategies can be used by the organization like segmentation, targeting and positioning (Dibb & Simkin, 2004).
Segmentation strategy can be used by an organization to identify a target market. In this strategy, market is divided on the basis of four variables like demographic, psycho-graphic, behavioral and geographic. In demographic segmentation, age, income, gender, occupation etc are used to segment a target market. In the psycho-graphic segmentation, attitude, interest, opinion etc are covered to segment a target market (McDonald & Dunbar, 2004). In the geographical segmentation, areas like rural, urban etc are covered to target a market. In the behavioral segmentation, buying behavior, purchasing power etc are considered to identify a target market.
An optimal target market plays a vital role in the success or failure of a ...
The solution explains why it's useful to segment the market to determine your optimal target market before looking at the differences between demographic and geographic vs. psychographic and life cycle data collection with examples. 720 words with references.