The Process Of Market Segmentation In Online Marketing

809 Words 4 Pages
DQ1WK3Q1 – DGutierrez On average, one can be exposed to about 5,000 ads in one day whether it be through social media, magazines, television, or online surfing (Johnson, 2006). For example, if you are doing some online shopping, you might find an ad on Facebook that is related to clothing or shoes. Similarly, if you are on a specific channel, like the Food Network channel, most of the ads you will see are food related. The following describes how marketers are able to make this happen, the steps they take, and why it is so important to do so. Market segmentation is “the process of dividing a market into groups of similar consumers and selecting the most appropriate group(s) for the firm to serve” (Peter & Donnelly, 2013). In other words, …show more content…
The first step, delineating the firm’s current situation, occurs when a business does a complete situational analysis that determines the “objectives, opportunities, and constraints for when selecting target markets and developing marketing mixes” (Peter & Donnelly, 2013). The second step is determining the needs and wants of a segment. In this step, a business may ask “what are the needs of the customers and how can we group those customers based on their needs” (Bhasin, …show more content…
The first is that market growth has slowed and there is more competition so there is an increased “need to identify target markets with unique needs” (Peter & Donnelly, 2013). Secondly, social and economic factors, such as social media and more global awareness, “have produced customers with more varied and sophisticated needs, tastes, and lifestyles” (Peter & Donnelly, 2013). Thirdly, the technological advances have made it easier to target a specified market. Fourthly, “marketers now find that minority buyers do not necessarily adopt the social and economic habits of the mainstream” (Peter & Donnelly, 2013). Lastly, there is a group of people within the population that “identify with some segment or niche group that does not reflect the white, heterosexual consumer that historically defined the marketing mainstream” (Peter & Donnelly,

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