Regardless of how segmentation is incorporated into marketing activities, experienced marketer regularly execute segmentation to enable him supply higher values to his potential customers. He will be able to know which exact customers he is serving and will be able to address their needs and concerns.
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After segmentation, what the marketer needs to do next is targeting his efforts and focuses on the identified market segments. He will originate a marketing campaign that will fulfill the needs as well as the market health of his targeted market group.
Target market segment are affected by two salient factors:
1. How suitable the segment is to the product builder objectives, resources as well as capabilities and
2. How involving the target market segment is.
In determining the suitability of the segment to the manufacturer, the marketer needs
- to ensure that the product builder will be able to supply first-rate values than competitors to the customers.
- To rate the impact of serving the segment with respect to the builder credit and dignity.
- To way the distribution channels that will serve the targeted market sections.
- To determine the capital buoyancy of the builder to serve the market group.
And in determining the attractiveness of the target market section, the marketer will have to evaluate
- the percentage whole of the customers with respect to the broad market (size of the segments) that will be served.
- Sales potential for the product builder in the segment.
- profit margin anticipated from the segment.
- growth rate and competition in the segment.
- Required market share to break even
- Attainable market share when promotional budgets and expenditures of the competitors are provided.
- Loyalty of the existing customers in the segment.
An experienced marketer would know that satisfying the broad market is tasking and not profitable at all. In fact it will be less stressful and more profitable if just a smaller market segment where there is exiguous or no competition is concentrated on. This also gives the builder the chance to manufacture their products to have a greater advantage over competitors.
Factors Affecting the Target store Segment
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