Market Segmentation: What is the Best Way to Market Your Products of Services? Video Clip from MKT 6120: Marketing Management
What’s the number one goal for all businesses in the entire global marketplace? Yep, you guessed it… to PROFIT. In order to increase your bottom line, though, a targeted and effective marketing campaign is crucial because you need to find prospective consumers and convince them to consume your brand.
So what are the best strategies to create and implement a successful marketing campaign for your business? Well that’s where Dr. Tim Becker comes in…
MKT 6120: Marketing Management is taught by Dr. Tim Becker. Dr. Becker holds a B.A. in German from Luther College, an M.B.A. from University of North Texas and a D.B.A. from United States International University. His research interests and teaching specialization include marketing and global management.
Transcript of the Lesson
Welcome back Ladies and Gentlemen. Okay, we’re going to discuss what I think is a really exciting chapter. A lot of decisions have to be made. We are dealing with Chapter 5, and that deals with market segmentation. You know what this really is all about? It’s you deciding who should you go after, who should you be selling or promoting and selling your products or services to. Let’s go back to Chapter 1 where we were talking about limited resources, unlimited choices.
So when you look at a product or service, as a good marketer you’re trying to figure out ‘who do I go after’, but minimize the resources I need to get enough customers to stay in business and work on a profit. So you may say, “Oh, there’s a huge market for your product.” Well you know what? That may be true. But ultimately what you have to figure out is: of your market, you’ll really have to get down here to where your target is. And there’s a big difference between your market, who’s the potential, and your target.
So how do you get from this point, we have this huge market, down to here? So how do we do that? Essentially, market segmentation is de-massifying the market. So instead of this huge market you get down to the nitty-gritty, essentially who’s going to buy it. So two things are going to happen there. When you move from your market down to the target, you are going to get an increased homogeneity of the group. So up here might say, for example, if you are selling a product to a car industry, might be, all drivers within a hundred miles of you. Is that a market or a target? It’s really a market. Now when you look at your product and say, “Now really who has the high likelihood to buy?” And that’s the second thing you want to take a look at. Get people that are similar but also who have a greater need, or that you have a higher likelihood to sell to them and a higher likelihood that they will buy.
Transcribed by GMR Transcription