Ch. 8 - Segmenting and Targeting Markets

 
Marketers use different strategies to segment their target market. Segmenting consumer markets is a great way to organize groups that will better assist a company in delivering excellent products sales and establish growth in profit margins. Choosing the segmentation process is a crucial bases for a company, wrongfully doing so can result in lost of sales and decrease profit opportunities. There is often a different groups help define customer needs and wants. This also assist the company to expand product lines or even tap into there innovations, as well as helps the expansion of the company and gives them competitive advantage over competitors that offers no versatility. Market segments differ in size and opportunity, this is why precision is the key to better evaluate objectives that need to be met. As a company its important to utilize demographic design data, understanding different social groups, ages, genders and income ranges can better help you understand consumer behavior. Coach often refers their products to generation Y, however through group segmenting they are able to consistently deliver a product that offers versatility and may have a function in almost any consumers life. The different steps that are used can help a company pick, produce and deliver to the best of their potential, but deliver of the product is key, so it is essential to understand the need. Using these different strategies helps to seamlessly transition from one product to a well organized marketing mix.