Targeting and segmenting the market

• Target market

  the market an enterprise sells to
• Market segmentation

  key differentiators that divides customers into groups to be targeted
• Advantages of market seg

  1. target specific people
  2. understand customer needs
  3. choosing market methods better suited
• Dis Adv to market seg

  1. extensive research - costly
  2. higher costs due to promotion
  3. change in customer behaviour
• 4 segments

  demographic- age gender etc

  behavioural - spending consumption and loyalty

  geographical - location

  physcographic - social class personality and lifestyle
• B2B

  adv:

  1. larger order - higher profit
  2. fewer customers - businesses buy in bulk
  3. promotional activities- fewer customers

  disadv:

  1. More complex - long process
  2. excludes individuals
  3. customised product
• B2C

  adv:

  1. Higher selling price
  2. lots of potential customers

  disadv:

  1. consumer market is large
  2. buyer behaviour
  3. orders will be smaller