Market segmentation and what a viable market segment should demonstrate
Introduction
The concept of market segmentation is vital when it comes to marketing strategies and approaches intended to reach a specific category of consumers. In the process of developing products or services for a specific market, it is important that businesses understand that consumers have an array of interests and preferences. Therefore, without having an approach of scanning through the population and understanding target consumers of the product or service being offered, the product/service delivery process might end up being futile due to targeting the wrong product destination. The following section discusses Brooklyn, Minnesota as a target market by looking at it in segments. Thereafter a target market is identified, the recommended service for the target is also given followed by a discussion of how the service line would be marketed.
Market segmentation and what a viable market segment should demonstrate
Market segmentation is described as the process of identifying portions of a market then dividing them into smaller subcategories consisting of already existing customers and potential customers. Owing to the fact that it is a consumer inclined process, it can be carried out on any type of market (Camilleri 2017). Therefore, for a market to be considered viable It has to demonstrate certain variables. The most sought features of a viable market are that ithas to have a group of individuals, or organization that depict a pattern like interest in a particular service. The individuals making up the segment need to share similar traits and characteristics. In addition, a viable market should be measurable, in that it should contain information that one can measure and group.
Another viability emanates from having a sufficient population that can be able to generate profits enough to keep the service provider sustaining the service provision process(Johansson 2017). Besides, it should also be easily accessible and differentiable. Viablemarkets are regarded as accessible when it is convenient and favorable to reach them and offer a preferred service to them. When it becomes easy to group the members of the marketit is termed as differentiable.
Identify a target market, recommend a service line for that target market
Based on the information gathered about Brooklyn Park Minnesota, the identified target market is the employed part of the population. The service line recommended to thissegment of the population is car gas/fuel service. Looking at the data, Brooklyn has recordeda growing population over the past decade. Out of the population, only 3.9% of the population is unemployed and less than 5% of the total population works from home. The area is characterized by a 100% urban population. Among the people using automobiles, which is assumed to use gas, 77.60% of the population drive to work. Besides that, close to 10.0% deploy shared private cars service, carpool, and motorcycle users make up 0.10% of the population. Despite having a small portion that walks, which is less than 0.5%, close to six percent of the population use bus services. There already a clear part of the population that would need the gas services.
How the gas service line will be marketed
The main marketing strategy will deploy some of the marketing mix strategy elements that are mostly product, price, and promotion (Johansson 2017). Specific approaches used will include; cash discounts on the gas prices. Promotions made will include; advertisements inclined towards price alongside marketing on social media platforms. Customer rewards will also be made to enhance customer relationships boosting customer loyalty.
References
Camilleri, M. A. (2018). Market Segmentation, Targeting, and Positioning. In Travel Marketing, Tourism Economics and the Airline Product (Chapter 4, pp. 69-83). Springer, Cham, Switzerland. DOI: 10.1007/978-3-319-49849-2_4
Johansson, R. (2017). Which Market Segmentation Variables are Most Effective toDetermine New Business Potential? International Business Management with a Nordic focus. Retrieved https://core.ac.uk/download/pdf/161421598.pdf
QUESTION ;
May I please ask for clarification? What service line are your proposing with gas? May I please ask if you can share what specific marketing technique you would recommend utilizing for promotion? This is a great time to be creative in determining how you would promote this.
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