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• Market segmentation refers to the act of forming prospective buyers into particular groups that share one or more similar characteristics and who will respond similarly to their product needs.
• Market aggregation pertains to the approach of marketing a product or service to a huge number of consumers sharing identical needs and demands and thus, allowing for more exposure to the product or service.
• demographic information refers to the natural and actual data relating to the customers, whereas psychographic information pertains to their behavioral qualities.
• Customer profiling is the process of gathering detailed and important information about customers.
• Customer profiling contains complete and factual demographic and geographic information, buying behavior, and all other related details.
• Demographic information includes certain variables such as age, gender, race, and the civil status of a customer.
• The first step in profiling the target market is to identify precisely who these potential customers are.
• geographic information basically dwells on the location so that products and services can be better served in a particular area.
• Socioeconomic information pertains to the aspects of income, education, occupation, and household description of the target market.
• Psychographic information are the hobbies, interests, and lifestyles of the target market.
• Identify the scope of messaging is the first step that must be taken is to determine what the business needs to communicate or transmit to the intended audience.
• Researching on the target market is the second step and will help the business in identifying the four critical information needed in target market profiling.
• Build a realistic persona is the third step and involves the identification of individuals that the business would like to reach. Try to create an illustration or sketch of a person that belongs to the intended audience.
• Steps in Creating a Target Market Profile

  1. Identify the scope of messaging.
  2. Research on the target market.
  3. Build a realistic persona.
  4. Incorporate important characteristics.
• Incorporate important characteristics is the fourth step and as a business engaged in creating marketing strategies, it must be able to determine the key factors that trigger the customers in purchasing a product or service, the reasons why they are discouraged from purchasing, and the product values they are looking for.
• Identify the parts of a persona

  A) Name

  B) Age

  C) Gender

  D) Brief description

  
• Part 2 of building a persona

  A) Interests or triggers

  B) Preferred marketing platforms

  
• Market segmentation is otherwise known as “differentiated marketing.”
• Common Bases for Segmentation

  1. Descriptive bases
  2. Behavioral bases
  3. Benefit bases
• Descriptive bases include information that is measurable and identifiable and information that serves as strong indicators of the needs and preferences of the consumers.
• Behavioral bases, compared to the descriptive ones, are generally more difficult to measure because they include information that cannot be gathered through simple market research methodologies.
• Benefit bases refer to information or data that help the businesses in identifying what the consumers seek in purchasing a certain product.
• Undifferentiated marketing is generally represented by market aggregation.
• Benefits of Market Aggregation

  1. Reduced costs
  2. Lower prices
  3. Product differentiation
• Difference

  A) Nomenclature

  
• Difference

  A) Assumptions on the needs and wants of the consumers

  
• Difference

  A) Marketing approach

  
• Difference

  A) Product pricing

  
• Branding is the process of creating a name, symbol, or design that identifies and differentiates a product from other products.
• Brand elements are trademark devices that identify and differentiate the brand from its competitors.
• brand name is a trading name given by the manufacturer or organization to a particular product or service.
• Awareness refers to the number of people who know the brand and can be increased through advertisements on television, radio, newspaper, or social media.
• Targetable should be planned in relation to the target market. The business should not target the entire population.
• Loyalty is an achievement for a business. Consumers prefer using certain brands of some products.
• Consistency is where businesses make numerous promises on advertisements, and consumers expect them to deliver on their promises.
• Features of branding

  • Awareness
  • Targetable
  • Loyalty
  • Consistency
• Advantages of branding

  • Customer recognition
  • Competitive edge in the market
  • Easy introduction of new products
  • Enhanced credibility and ease of purchase
• Customer recognition means having a strong brand builds customer recognition. Consumers are likely to buy a product they recognize over those products that are unfamiliar to them.
• Competitive edge in the market means the brand differentiates every business in the marketplace. When customers recognize the business, it gains a competitive edge over other businesses.
• Easy introduction of new products means when a business has a strong brand and loyal customers, it is easier and less expensive for it to introduce new products in the market because the customers are often interested in the product of the business.