Segmentation and Target Market

Segmentation and target market

Introduction

To establish the competitive position in the market place and to promote the sale of the product, it is essential for the manufacturer as well as for the retail industry to follow the proper criteria. In this regard; market segmentation, target marketing and positioning; are the key factors and strategies to get the success amongst the competitors in the marketplace. Target Corporation is the retail industry and one of the discount retailers in the United States. Target has achieved the better position in the marketplace as well as in the mind of the public.

Discussion

Target Corporation is the largest retailer that stands the second position in the United States. The total number of target and its super stores in the United States is more than 1700. Target Corporation provides everything even from the household essentials to the software programs of the computer. They also offer facilities of groceries, debit and credit cards, and trade various products under the other associated private brands. Target Corporation follows the particular strategy in order to expand its services to Canada, to continue its private brand offers and to change places of its grocery stations to the develop the PFresh stores.

Market Segmentation of the Target Corporation

Market Segmentation

Market segmentation is the process to distinguish the group of potential buyers among all the customers having same characteristics. All the people are not equally interested in product proposed by the industry. The demands and needs of people are different from each other. Certain people are more likely to buy the product if the price is appropriate where as other people might be attracted if they are aware of the particular products` existence. The purpose of market segmentation is to sort out those people or organizations that are willing and attracted to buy the launched product.

Types of Segmentation

The segmentation of markets depends on various bases such as demographic, psychographic, behavioral and geographic. These categories based on different perspectives are assisting the investors and the product manufacturer to target the market.

Demographic Segmentation of the Customers

Demographic data highlights the information regarding customers` race, sex, age, religion, education, occupation, nationality, income and social class. The entire background of the customer is analyzed prior targeting it. The segmentation of the consumers according to the demographic criteria helps to evaluate the actual consumers of the product. There are many products, which are only female related or children related such as cosmetics for women and diapers for children. The product specified for the particular group of people required the demographic segmentation.

Psychographic Segmentation of the Customers

It is the segmentation of the consumers depending on their interests, lifestyles, values, attitudes, opinion and activities. The psychographic data is collected through different surveys.

Behavioral Segmentation of the Customers

The behavioral status of the consumer is crucial for the sale of the product. The usage rate, frequency of the use by the customer and the advantages of the product according to the buyer are important factors to observe. The status of the customer; either he is a potential ...