What is the concept of market segmentation?

Market segmentation creates subsets of a market based on demographics, needs, priorities, common interests, and other psychographic or behavioural criteria used to better understand the target audience. By understanding your market segments, you can leverage this targeting in product, sales, and marketing strategies.

What is market segmentation and selection?

Market segmentation and targeting refer to the process of identifying a company’s potential customers, choosing the customers to pursue, and creating value for the targeted customers. It is achieved through the segmentation, targeting, and positioning (STP) process.

Why is selecting a market segment an important decision?

The purpose of market segmentation is to identify different groups within your target audience so that you can deliver more targeted and valuable messaging for them.

What are the marketing concepts?

There are 5 marketing concepts that organizations adopt and execute. These are; (1) production concept, (2) product concept, (3) selling concept, (4) marketing concept, and (5) societal marketing concept.

Who introduced the concept of market segmentation?

Smith is generally credited with being the first to introduce the concept of market segmentation into the marketing literature in 1956 with the publication of his article, “Product Differentiation and Market Segmentation as Alternative Marketing Strategies.” Smith’s article makes it clear that he had observed “many …

What is market selection process?

What is Market Selection? Market Selection is the process of deciding which markets to invest in and pursuing. One of the major criteria to be kept in mind while doing a market selection is the growth potential of the market i.e. what is the potential for a company’s revenue to grow by investing in a particular market.

What is the relationship between market segmentation and the selection of target markets?

The key difference between market segmentation and target market is that the market segmentation refers to the identification of specific consumer groups for the product, whereas the target market refers to the potential customers for the particular product or service.

What is the importance of marketing?

Marketing educates many people about a certain product. When people are well-informed about your product, your sales will increase. Marketing is a great help for many business establishments to create revenue options. It is when business sectors use different marketing strategies to increase business profits.