Purchase Solution

Segmenting a Market, Demographic vs. Psycho-graphic Data

Not what you're looking for?

Ask Custom Question

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.

Purchase this Solution

Solution Summary

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.

Solution Preview

Answer 1

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 ...

Purchase this Solution

Free BrainMass Quizzes

This tests some key elements of major motivation theories.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Introduction to Finance

This quiz test introductory finance topics.