Segmentation And Target Market Analysis Essay
Segmentation & Target Market Analysis
Wal-Mart Market Segmentation
Wal-Mart market segmentation indicates the way they identify group or divide their customers into groups. They conduct research that is aimed at identifying trends and predilections among certain groups of customers. Wal-Mart uses market segmentation to identify where they should open stores and what types of products they should carry in the stores. Wal-Mart uses age based and geographical segmentation. Geographical segmentation involves doing market research to identify where the greatest needs for stores. Geographical segmentation involves pairing customers based on their physical location. One example would be that Wal-Mart would sell snow shelves and ice-melt in cities like Miami because there is no snowfall in that part of the country. The second segmentation is by ages of customers in a targeted area. When a company uses this segmentation they will stock items that meet the needs of that age range of customers (Wal-Mart 2013).
Target Market Selection Process
Wal-Mart uses five methods to identify their target markets. They also use these to identify segmentation variables. The steps are:
1. Identifying their target market.
2. Determining a strategy.
3. Develop market segment profiles.
4. Evaluate relevant market segments by using the target market selection process.
If the needs of the classified customers are similar, the best approach that Wal-Mart should use is the…