Target-Market Selection Process

As discussed in class, there are five steps in the target-market process: Step 1- Identify the Appropriate Targeting Strategy; Step 2- Determine Which Segmentation Variables to Use; Step 3- Develop Market Segment Profiles; Step 4- Evaluate Relevant Market Segments; and Step 5- Select Specific Target Markets.

I enjoyed learning about Step 2: Determine Which Segmentation Variables to Use and found it very interesting. First of all, segmentation variables are characteristics of individuals, groups, or organizations used to divide a market into segments. Markets are segmented in ways that may help build relationships with their targeted customers. There are many segmentation variables that a marketer can choose when using segmentation when reaching a consumer market. These include demographic, geographic, psychographic, and behavioristic. I found this very interesting because there are just so many variables and ways that a marketer can go about when segmenting which can be fun too.

I feel like the most popular variables that are used are the demographic variables which consist of age, gender, race, ethnicity, income, education, occupation, family size, family life cycle, religion, and social class. Age is definitely an important factor because many products are aimed for children, teens, young adults, adults, and seniors. For example, clothing stores such as Gap Kids located in the mall targets children because those clothes are specifically made for all children. Gender is another significant variable used when segmenting. An example of this would be deodorants, razors, body wash, and clothing which are marketed specifically to men or women. The income variable plays a role when reaching out to the consumer. This would include stores that would suit the lower, middle, and upper classes. For example, the Dollar Store would attract mainly the lower class while the Brand Coach would attract the upper class consumers because the products are so expensive. Overall, more marketers use demographic variables more than any of the other variables.

Which segmenting variable do you think marketers use the most?