Marketing Principles Target Demographics

Question: Discuss about theMarketing Principlesfor Target Demographics. Answer: Introduction The concept of market segmentation is one of the most ideal approaches to increase the sales by selling to fewer target demographics. By implementing smart market segmentation, modern business organisations can grow their market at will. Precisely, by providing the right types of products or solution to a larger target demographic profile can contribute to increase the sales. Alternatively, if modern organisations have failed to deliver towards the massive target demographics, the overall sales of the business will be reduced (Goyat, 2011). Hence, the role of market segmentation can provide the best set of buyers to a company. By offering the most required products to the selected target groups, contemporary business organisations have turned a large population into significant group of buyers to increase profitability and market reach. Moreover, the geographic segmentation of a market can identify the major territories that are most crucial for business (Sllner and Rese, 2011). Ther efore, market segmentation is the need of the hour to grow market of any business. Idea of Segmentation and Research In the global marketing, business organisations need to make significant changes in the strategic moves to stay competitive. Hence, right set of marketing strategy and practices will be evident to achieve the corporate goals leading to a market. Apart from marketing campaigns and promotional activities, the role of market segmentation can be identified as the best approach to make market expansion (Myler, 2016). The idea of market segmentation has divided the identified market in certain homogeneous target groups. In such strategic move, the purchasing behaviour of the target demographics must have been taken into consideration to divide the market in different profitable sections. For instance, global organisations such as TESCO Plc, one of the leading food retailers of the world has utilised market segmentation to increase the sales. By identifying the region and density of the target market, the organisation categorised geographic segmentation to sell the food items in a different order to the urban and rural public. Also, based on income status, occupation, social status and education of the target demographics, segmentation has been done to sell the right products to the right set of buyers (Bhasin, 2016). Primarily, there are significant positives of market segmentation. Segmentation has helped an organisation to understand the buyers belong to a small group and eliminate major competition effective for sales. Theory of Segmentation The concept of segmentation was first developed as an economic theory to present how an organisation selling homogenous products in a heterogeneous demand market maximises its profit (Scott, 2012). Segmentation is an element of the three-part process of marketing theory known as STP that stands for segmentation, targeting and positioning. The concept of STP is used by the marketing department of an organisation to have a close look at the potential customers to plan the marketing mix. On the other hand, segmentation helps to narrow down the market to increase the efficiency of the marketing process (Scott, 2012). The segmentation theory is used to break down the target market into smaller groups based on the geographic, demographic, behavioural and psychographic characteristics. The behavioural segmentation is used to categorise the market on the basis of the use of the products. On the other hand, the demographic segmentation is used to categorise the market on the basis of the age, gender, income level and familial status of the customers. Furthermore, the geographic segmentation is used to segment the market according to its location such as country, state or region (Myler, 2016). Hence, it can be seen that segmentation helps the management to observe the demand of the consumers and develop strategies according to the variation in the market. Example of Segmented Market and Analysis In the current scenario of growing competition in the global market, market segmentation has emerged to be an effective strategy to gain competitive advantage over the rivals. It is used to understand the psychological behaviour of the consumers and develop products as per the demand of the customers (Ray Chaudhuri, 2014). For example, the Franco-American Spaghetti has differentiated its products by offering various flavours, shapes and sizes as per the demand in the market. It has helped the organisation to focus on a small number of targeted customers and develop its products as per the demand in the market (Sllner and Rese, 2011). Hence, the segmentation strategy has helped the firm in seeking competitive advantage and growth in the international market. Therefore, it can be said that the statement segmentation is an ideal approach to grow your market is true and the concept of segmentation helps an organisation to increase the efficiency of its marketing operations. Conclusion By considering the above analysis, it can be seen that market segmentation has been an effective marketing strategy that helps the organisation to develop its marketing mix as per the demand of the consumers. It helps the firm to gain competitive advantage and good positioning in the market. On the other hand, market segmentation helps to reduce the size of the market that increases the efficiency of the marketing operations. Hence, it can be concluded by saying that segmentation is an ideal approach for an organisation to grow its market. References Bhasin, H. (2016).6 advantages of segmentation - Benefits of segmentation. [online] Marketing91.com. Available at: https://www.marketing91.com/6-advantages-segmentation/ [Accessed Feb. 2017]. Goyat, S. (2011). The basis of market segmentation: a critical review of literature.European Journal of Business and Management, [online] 3(9), pp.45-54. Available at: https://www.iiste.org/Journals/index.php/EJBM/article/download/647/540 [Accessed Feb. 2017]. Myler, L. (2016).Market Segmentation: Sell More By Selling To Fewer. [online] Forbes.com. Available at: https://www.forbes.com/sites/larrymyler/2016/01/19/market-segmentation-sell-more-by-selling-to-fewer/#3465d4d55bf7 [Accessed Feb. 2017]. Ray Chaudhuri, A. (2014). Cross-Border Mergers and Market Segmentation.The Journal of Industrial Economics, 62(2), pp.229-257. Scott, M. (2012).An investigation of market segmentation theory and its impact on effective fundraising. 1st ed. Brisbane: Centre of Philanthropy and Nonprofit Studies, Queensland University of Technology. Sllner, A. and Rese, M. (2011). Market segmentation and the structure of competition: applicability of the strategic group concept for an improved market segmentation on industrial markets.Journal of Business Research, 51(1), pp.25-36.