Market is a group of customers or potential customers. Companies focus on its particular market by getting practical information the company can use for sales, marketing, and product development. The market starts with the total population, then Potential markets that have an interest, then Available markets that have the money, then Target markets that are the customers the company has determined to serve (the served market), then finally the Penetrated markets who have already bought your products and/or services.
The market can then be broken up into segments and analyzed even further. We will review market segments later in this lesson.
Types of Market Segmentation
- Psychographic segmentation: The emphasis in this segmentation lies in the lifestyle of the prospects. The individual’s attitude, interest, value help the marketers to classify them into small groups.
- Behaviouralistic Segmentation The loyalties of the customers towards a particular brand help the marketers to classify them into smaller groups, each group comprising of individuals loyal towards a particular brand.
- Geographic Segmentation: This is the classification of market into various geographical areas. A marketer can’t have similar strategies for individuals living at different places.
- Nestle promotes Nescafe all through the year in cold states of the country as compared to places which have well defined summer and winter season.