Market Development is the effort to increase sales by selling current products into new markets. Marketing research, as an applied science, is tempted to borrow its theoretical structures from the disciplines from which it derives. For example, one of your segments may be a coupon maven, who is more likely to shop during a promotion or sale.
Markets can change so swiftly, and the size of key segments can shift so rapidly, that great sensitivity is required to catch a trend in time to capitalize on it. Cultural Differences in Marketing — What Businesses need...
Following are 5 criteria that indicate whether you have selected a viable target market: This means that the consumers allocated to each segment should be similar in some relevant way. Market Segmentation Criteria — How to segment Markets.
Once you have established distinct market segments based on various dimensions, you are ready to start targeting your potential customers.
Because people and their needs change, effective approaches approach for segmenting a market can also evolve over time. Remember, maintaining leadership and revenue in any market requires diligence and the ability to listen and respond to current and potential customers.
Although the value of an automobile as a status symbol has declined, the personal satisfaction in owning a fine car has not lessened for this segment of the market.
These criteria can be based on geographic, demographic, psychographic and behavioural variables. The two acronyms represent similar conditions and criteria.
It infinitely simplifies the setting of objectives. Sign Up.Marketing: Segmentation - Targeting - Positioning
The strategic-choice concept of segmentation broadens the scope of marketing planning to include the positioning of new products as well as of established products. It can also be helpful in understanding certain types of buying behavior, such which income groups are most prone to use coupons.
This approach has since become very popular. The combination of market segmentation criteria should lead to market segments that are measurable, accessible, substantial and actionable.
They are willing to pay for these product qualities. Common business segmentation approaches include:.
Decisions regarding the ideal marketing mix can be organized in terms of Price, Promotion, Product, and Price.