Question.969 - Using all of the basis of segmentation detailed in figure 7.2, segment the market for your market project company. Then, detail how they have chosen a target market as it applies to the segmentation process. Keep in mind that the process of segmentation will arrive at numerous possible segments and from them targets are chosen. What drives the choice to be a target market? Be sure to cite your sources in your response. Analyze each other’s posts.
Answer Below:
In accordance with the figure 7.2 considering Walmarts comprehensive segmentation process whereby they tend to identify the target audience by employing the following segmentation criteria that includes primarily demography demographic, geographic, psychographic, and behavioral factors, in order to match the ever dynamic and changing customer demands. In terms of demographic segmentation Walmart tend to segregate their product/service lineup based on specific variables such as age (for instance, looking at the office), gender, family life cycle, income and social class. For example, offer promotions aimed specifically at millennials or baby boomers ranging from PlayStations?to?modern day easy to use TV's (Schuetz, 2015). Gender segmentation enables them to provide items that address the distinct interests and demands of men and women wherein they tend to offer a diverse range such as cosmetics for women and grooming products for men, while other products include automotive products and services. Understanding the family life cycle allows Walmart to better meet the requirements of families with young children, teens, and empty nesters. Income and social class segmentation enable them to produce items that cater to a wide range of income levels and social positions wherein the product ranges from branded line up to Walmart owned domestically made products are lesser in cost (Solomon et al., 2022). Geographic segmentation is used by Walmart to discover target audiences based on location, one such example could be seen in Texas which has the highest number of physical stores around 600, followed by Florida with physical stores over 300 (Solomon et al., 2022). They take into account elements like geography, urban or rural locations, climate, and population density and?customize their product varieties and marketing activities to fit the individual desires of clients in various geographic areas by?analyzing?these elements. For instance, in warmer locations, they may carry more outdoor and sporting products, whereas in colder climes, they may stock more winter gear (Schuetz, 2015). Thirdly, Walmart considers psychographic characteristics including lifestyle, value standards, hobbies, and attitudes when segmenting customers that?enables them to comprehend their target clients' motives and ambitions. For example, they may cater to health-conscious customers by providing a variety of all-natural such as organic due to the present trend of?healthier food alternatives (Solomon et al., 2022). Walmart may tailor its marketing techniques to individual lifestyle preferences, including budget-conscious consumers or environmentally conscientious customers, by?recognizing their?specific lifestyle preferences which shows the companies ready nature to adopt to the dynamic customer demand trends (Schuetz, 2015). Lastly, Walmart?utilizes?behavioral?segmentation to?categories?customers according to their purchase habits and tendencies wherein they include things like usage rate, commitment to the brand, advantages sought, and events. Walmart can offer?personalized?incentives, loyalty programs, and targeted advertising by studying its consumers' purchasing?behavior's. For example, they may provide unique discounts or awards to repeat customers, or they may make?customized?product suggestions based on prior purchases. Several variables influence Walmart's decision to target a specific market. First and foremost, the sector should be consistent with Walmart's broader company strategy and objectives since?the target customer segment include budget-conscious shoppers, families, and those looking for convenience. Secondly, the target market should have a large enough consumer base with a sufficient amount of money that is the purchasing power?to produce sales and income for the?organization (Solomon et al., 2022). References Schuetz, J. (2015). Why are Walmart and target next-door neighbors?. Regional Science and Urban Economics, 54, 38-48. Solomon, M. R., Marshall, G. W., & Stuart, E. W. (2022). Marketing: Real people, real choices. Pearson Higher Ed.More Articles From Marketing
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