Segmentation Criteria and Targeting

Segmentation criteria and targeting are essential components of the market segmentation process. Once a market is segmented into distinct groups, businesses need to select the most appropriate criteria for segmentation and decide which segments to target. Here are key considerations for segmentation criteria and targeting:

Segmentation Criteria:

1. Demographic Criteria:
   • Examples: Age, gender, income, education, marital status, occupation.
   • Use Case: Useful for products or services with demographic-specific appeal, such as children’s toys, financial services, or luxury goods.
2. Psychographic Criteria:
   • Examples: Lifestyle, personality traits, values, interests, attitudes.
   • Use Case: Effective for brands with products that align with specific lifestyles or appeal to consumers with particular values.
3. Behavioral Criteria:
   • Examples: Buying patterns, product usage, brand loyalty, benefits sought.
   • Use Case: Useful for understanding and targeting consumers based on their behaviors and preferences, allowing for tailored marketing strategies.
4. Geographic Criteria:
   • Examples: Location, region, climate, population density.
   • Use Case: Relevant for businesses with products or services that cater to specific geographic needs or preferences.
5. Socioeconomic Criteria:
   • Examples: Social class, income level, education level.
   • Use Case: Helpful for products or services that are priced or positioned based on socioeconomic factors.
6. Usage Rate Criteria:
   • Examples: Heavy users, moderate users, light users, non-users.
   • Use Case: Beneficial for understanding different levels of engagement with a product or service and tailoring marketing efforts accordingly.
7. Benefit Criteria:
   • Examples: Specific benefits sought from a product or service.
   • Use Case: Useful for products with multiple features or benefits, allowing businesses to target consumers based on their primary motivations.
8. Generational Criteria:
   • Examples: Baby Boomers, Generation X, Millennials, Generation Z.
   • Use Case: Relevant for businesses tailoring products and marketing messages to specific generational preferences and characteristics.
9. Family Life Cycle Criteria:
   • Examples: Stage of family life, presence of children.
   • Use Case: Beneficial for products and services that cater to specific family needs and life stages.
10. Occasion-Based Criteria:
    • Examples: Regular occasions, special occasions, specific life events.
    • Use Case: Helpful for businesses offering products or services suitable for specific occasions.

Targeting:

Once segments are identified based on chosen criteria, businesses need to decide which segments to target. This involves evaluating the attractiveness of each segment and the organization’s ability to serve them effectively. Key considerations for targeting include:

1. Segment Size:
   • Assess the size of each segment to ensure it is large enough to be economically viable and justify the resources allocated to it.
2. Growth Potential:
   • Consider the growth potential of each segment. Targeting segments with higher growth rates may lead to increased sales and market share.
3. Competitive Environment:
   • Evaluate the level of competition within each segment. Choosing segments with less intense competition may offer better opportunities for differentiation.
4. Compatibility with Business Objectives:
   • Ensure that the selected segments align with the overall objectives and capabilities of the business.
5. Resource Allocation:
   • Consider the resources required to target and serve each segment. Assess whether the organization has the necessary resources to effectively reach and serve the chosen segments.
6. Distinctiveness of Segments:
   • Target segments that are distinct from each other, ensuring that marketing efforts and product offerings are tailored to the unique needs and preferences of each segment.
7. Accessibility of Segments:
   • Ensure that the chosen segments are accessible through the organization’s distribution channels and marketing channels.
8. Compatibility with Brand Image:
   • Consider whether targeting a specific segment aligns with the brand image and positioning of the organization.
9. Legal and Ethical Considerations:
   • Ensure that targeting strategies comply with legal and ethical standards, avoiding discriminatory practices.
10. Feasibility of Implementation:
    • Assess the feasibility of implementing marketing strategies for each segment, considering factors such as product adaptation, communication channels, and distribution logistics.