I. Read the following words correctly. Look them up in a dictionary if necessary.

afford

analysis

analyze

characteristics

client

company

campaign

compete

competitor

conduct

criteria

current

customer

demographics

determine

effectively

effort

feature

generate

identify

income

niche

particular

psychographics

purchase

rather

require

segment

service

II. Read the quotations below. Chose one and comment on it.

1. "A customer is likely to create the most value for you at about the point he gets the most value from you." - Don Peppers (Don Peppers is a best-selling author, blogger, widely-acclaimed keynote speaker and global CX authority.)

2. "Amazing things will happen when you listen to the consumer." – Jonathan Midenhall, CMO of Airbnb

3. "Think like a customer."- Paul GillinB2B & social media strategist

III. Work in groups and make your mind map associated with target market. (read App1)

 

IV. Make up your own sentences using the words from the mind map.

V. Answer the questions:

1. Does any product meet every customer needs? Why?

2. How can a company understand that customers are their target?

3. What customer data can help marketers identify their target?

4. What questions does a company have to answer so that they could identify their ideal customers?

5. How can marketing mix influence the selection process of the target customers?

Reading

I. Match the Russian and the English equivalents in the table below.

1.  target market	a. описание типичного покупателя
2.  categorize smth into groups	b.  покупательские привычки
3.  develop a marketing strategy	c.  семейное положение
4.  segment the market	d.  разделить рынок на группы потребителей, имеющих схожие потребности
5.  marital status	e.  целевая аудитория; круг потенциальных покупателей
6.  purchasing habits	f.  предпочитать какой-то бренд
7.  be loyal to a brand	g.  разработать маркетинговую стратегию
8. customer profile	h. сгруппировать, разделить на группы

 

II. Scan the text and say what its major subject is. Use the following clichés: (for more useful phrases use App2)

As far as I am concerned, ………….

You are free to disagree with me but.................

Frankly speaking I have no idea..........

Target Market Segmentation

In order to successfully develop a marketing strategy, the company needs to identify who they are targeting, i.e. who their customers are. The way they establish their target market is through market segmentation.

The difference between market segmentation and market segment is that the former is the process, whereas the latter is the result. In order to create market segments, the business needs to go through the process of market segmentation. The reason market segmentation is so critical to business is because it is difficult to satisfy the needs of all consumers with the same products and messaging. Consumers have different interests, needs, goals, likes and dislikes, so businesses need to cater to groups of consumers in different ways according to their traits.

Ways to Segment the Market

While there are several ways to segment the market, they can be categorized into four main groups:

Demographic: This is the most basic way to segment the market. Businesses can group consumers basing on age, gender, race, religion, nationality, occupation, income, marital status and social class. If a business sells graphic T-shirts, it may segment its market by age and gender to better appeal to its customers. Its shirts for females may have a different shape and sizing chart from the shirts for males. Plus, the graphics put on the shirts may be categorized by the age group it is targeting. What a millennial would wear on a graphic T-shirt will likely differ from what someone from Generation Z would prefer.

Geographic: Where a consumer lives affects their interests and purchasing habits. When segmenting geographically, businesses group customers by location, climate, population density and size of region. For example, if a small business makes hand-knit thermal socks and gloves, it’s unlikely they will have success in warmer climates because there is not a high need for those products. Instead, it can segment its market by climate to target those who live in colder climates with subzero temperatures.

Behavioral: This segmentation type involves understanding the way people behave towards products and services. It is affected by benefits consumers are looking for, whether they are loyal to a brand, how often they plan to use the product, how ready they are to buy and whether they have already purchased from the company before. For example, some customers will like a particular aspect of a brand and continue to purchase its products. This kind of brand loyalty should be nurtured and rewarded. Creating campaigns to target loyal customers can help businesses to establish brand ambassadors that are highly trusted by the market.

Psychographic: The kind of lifestyle a consumer lives is an important part of market segmentation. A consumer’s hobbies, opinions, attitudes, values and interests are how a business can segment their market.A target market segment example for psychographic segmentation is focusing on a group of people who share the same hobby. If a company sells athletic wear, for example, it may want to target consumers who play basketball. The way it targets this market segment may include showing images of professional NBA basketball players in ad campaigns or playing a specific kind of music in its stores. The idea is to focus on the lifestyle with which your segment identifies.

Customer Profile

After a business has evaluated its potential market segments and established their target market, it’s important to develop a customer profile. It is a vital marketing document that outlines all of the important traits of an ideal customer within the target market that affects the way they purchase and look at products.

The customer profile should be detailed and include information on all four segmentation categories: demographic, geographic, behavioral and psychographic. It helps the business to build a comprehensive picture of who they are selling to. It also provides a quick reference point so that anyone who is working on marketing or product messaging can quickly understand the consumers' needs, wants and goals.

 

https://bizfluent.com/facts-5813531-difference-market-segmentation-target-market.html

Comprehension