Marketing Analysis : Proctor T Essay

995 Words Oct 9th, 2014 4 Pages
Proctor T (2000) asserts that segmentation is a marketing management tools used by firms to establish a competitive advantage. According to Miklos and Elberse (2006), Market segmentation consists of segregating a market into a number of distinct segments of potential customers; each with different and distinct behaviors, needs and characteristics. Using market segmentation, a firm can more effectively identify and target and fulfill consumer needs. Markets can be segmented either by the benefits customers seek or by an observable characteristic, like age, sex, gender or lifestyle. To illustrate both types of market segmentation, let us look at the market for running shoes, for benefit sought, one particular runner may prefer trendy design and aesthetics, while others may prefer durability and comfort. While for segmentation based on observable traits, for example older runners may prefer durability and comfort, while younger runners may prefer running shoes that are trendy with up-to-date aesthetics or design.
According to Miklos and Elberse (2006), targeting is the next logical step in marketing after market segmentation. Targeting refers to the process of evaluating all possible marketing segmentation options and selecting the best option/s that will maximize profit. Targeting not only identify the market segments to be targeted, but also determine how an organization will target those segment/s. In order for an organization to determine which market segment they should…

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