Question

1)What is market fragmentation? Why is market fragmentation of concern to marketers?

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2) Explain the major steps in the target marketing process.

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3) Why do marketers segment the market and use a target marketing strategy?

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Answer 1

1) Market fragmentation is the process of splitting up a diverse market in small groups of customers based on the customers' needs and services offered.
Market fragmentation is of concern to marketers because market fragmentation can give marketers a distinct competitive advantage by addressing the needs of a new consumer segment with personalized products or services. Market fragmentation also increases brand loyalty and gives the company a lower entry into the new market.

2) The major steps in the target marketing process are:

i) Segmentation: In segmentation, the target market is divided into distinct sub-groups based on customer demographics, lifestyle, and geographic approaches. Customer demographics may be personal traits like gender, age, race, income, etc. Lifestyle traits will be based on customer hobbies and interests. Geography refers to the region or location where the customer is based.

ii) Targeting: Targeting refers to the marketing strategies and ad campaigns that the company plans on rolling out in order to attract a particular market or customer segment. Such a target market is selected based on the growth potential and long-term viability of the market.

iii) Product Positioning: Product Positioning refers to how the company wants its products and services to be perceived by its target customers. This perception may be based on the product features, its serviceability, price point, durability, etc.

3) Marketers segment the market and use a target marketing strategy in order to find the right market for their products and services and to better target their potential customers. Market segmentation offers a more precise target audience because of which developing customized marketing campaigns and strategies becomes easier and more efficient.