Marketing Plan: Situation Analysis
Segmentation and Target Market Analysis
Types of market segmentation
A market segment is simply a part of an entire market with distinctive and specific features. In market segmentation, the marketing is tailored to the wants and needs of a particular market segment.
Demographic segmentation
It is a market divided up by demographic differences between customers such as income, race, gender and age (Beane and Ennis, 2013). The idea is that the clients with particular demographic features will have certain wants and needs and ought to be targeted differently compared to groups which have different demographic characteristics. As a start-up, the IT Today may consider the demographic market segment of young males and females aged between 20 and 45 because this is the age bracket which is more into technology and well-informed with the modern technology. Besides, the company can focus on the middle -class young adults with annual incomes of between $80,000 and $150,000.
Psychographic segmentation
The market here is divided based on consumer lifestyles, interests, attitudes, and traits (Beane and Ennis, 2013). Therefore, given that the primary goal of the company is to provide technological assistance to the average consumer with interest to all the newest technological gadgets, it may divide into customers who are primarily interested in smartphones, tablets, and laptops, customers primarily interested in networking services and technical assistance, and consumers who seem to just want printing services.
Behavioral segmentation
It is a form of market segmentation which groups customers by specific behavioral patterns they demonstrate when making buying decisions. The market could be divided into groups of consumers according to their attitude towards, knowledge of a particular product (Smith, 2016). In sharing the market according to the behavioral patterns of customers, the firm will look at the purchase and usage patterns, money spending patterns and their lifestyle and age. The types of behavioral segmentation include buyer readiness stage, user status, brand loyalty status, usage rate, occasion and benefits sought. Overall, the company’s behavioral segmentation will be based on utilization rates and brand loyalty status.
Geographic segmentation
It is segmentation where an enterprise divides its market based on geography. The market can be geographically segmented in several ways. The business could split its market by geographic locations like by region, state, county, and city, country or global region (Smith, 2016). Also, the firm can divide the market into urban, suburban and rural market segments. Since it is a startup and operating in a metropolitan area, the company’s market will be an urban segment.
Target Market Analysis
A target market is the groups of clients to whom a business wants to sell its products or services potentially. A company’s target market is not every person who is situated in its place of activities. It is only comprised of the individuals who are good fits for the firm’s products. Fundamentally, the company should figure out the fish in the ocean which it is going to concentrate on catching. An enterprise cannot market to every person, and it should not. By marketing to everyone, the …
