All consumers are not the same. They are different in their needs, wants and demands. However, there are some other factors that may vary. These are- different backgrounds, education levels, experiences. Therefore, marketers offer different types of alternatives goods that can satisfy the consumer’s desires. As a result, marketers do the market segment and effective targeting.
There are three key elements for marketing of consumer’s goods and services.
- Market segmentation
- Strategic targeting
- Product positioning
These three elements are useful for producers. It helps through avoid competition in the marketplace. Besides, it also differentiates one product from another on the basis of some features. They are-
- Price
- Styling
- Packaging
- Promotional appeal
- Method of distribution
- Level of services
If you effectively fulfill the consumers’ demand, it can be profitable for you. The products differentiation is significantly more profitable than mass marketing. Besides, it is more effective than higher market research, production, advertising, and distribution. However, marketers use segmentation research. It helps them to identify the most appropriate media. Through this, they advertise their products and services. All media are – face book, Google, twitter, TV, radio, newspapers, and magazines. These all are used for segmentation research. Therefore, it helps to identify the characteristics of target customers so that it can reach more audiences. Thus, it helps to market segment and effective targeting.
Every segment is not viable or profitable. Before describing how market segments are identified, we need to know effective targeting. For effective targeting, a market segment must be identifiable, sizable, stable and growing, reachable, congruent with the marketer’s objectives and resources.
- Identifiable
On the basis of common and shared needs of consumers, the marketers divide the market segment. They also use demographics, lifestyles, age, gender, taste and preferences, income, occupation, education, and marital status segmentation.
- Sizable
There should be enough consumers to make targeting as profitable. A segment may be identifiable but not profitable. In that case, it will not effective for marketers.
- Stable and growing
Stable segmentation is preferable than any other segment. There is a reason behind it. It is like that stable segmentation is useful for the growing number of target customers. Besides, it helps to avoid fickle segments that are unpredictable.
- Reachable
A target segment is easily accessible for marketers. It means that marketers are able to communicate with their target consumers more effectively and economically. However, having so many social media platforms, consumers are watching much advertising of products and services
- Congruent with the marketer’s objectives and resources
Not all segments are reachable. Based on the marketer’s objectives and resources, they only reach those target markets.
Finally, marketers are applying all these criteria for the market segment and effective targeting.