Mkt 571 Market Segmentation Essay

1085 Words Feb 8th, 2015 5 Pages
Segmentation and Target Market Paper

MKT 571

November 20, 2011

Introduction

A market segment consists of a group of customers who share a similar set of needs and wants. The major segmentation variables by different sets of characteristics such as geographic, demographic, psychographic, and behavioral. (Kotler and Keller, 2012) Using this market-based strategy assist marketers to study the behavior of shoppers by categorizing markets. It also provide marketers a better vision to satisfy the needs and wants of customers and to gain more of their business. In this paper, I plan to discuss the market segments and target market of the small box discount retailer
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(Kokemuller, 2014). Dollar General operates in 40 states within the U.S. territory. Operating nearly 11,000 facilities with the largest amount of stores in Texas. The chain stores give General Dollar exceptional buying power to keep prices low. The stores operate in a 7,300 facility large enough to operate as small-box market but small enough not to be a super store. The stores serve communities too small to benefit from a super store. The number of dollar stores has doubled in the past decade and more accessible than the average superstores.
Stores are conveniently located in urban, suburban, rural locations and access to all customers in mid-sized communities. The store sells a variety of products categories to meet the needs of customers. Family needs is a major market segmentation for Dollar General. Families all have one thing in common the needs of everyday products such as cleaning supplies, health and beauty. The company recently increased its store based and opened a Dollar General Market to sell more food items.
Demographic Segmentation

The characteristics of a demographic segmentation include age, family size, family life cycle, gender, income, occupation, educations, religion, race generation, nationality, and social class. Kotler &

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