Question

’To interpret consumer demand, one should understand target market and consumer motivations.’

What do you mean by target market? Describe four segments of the target market.

Answer 1

Target market: It is defined as the category of consumers one is targeting at for selling the product.

Four segments of the target market:

1. Demographic segmentation is on the basis of population, age, sex, occupation, education and income.
2. Geographic segmentation is on the basis of cities, states and regions. The climate of various places may vary and it plays an important role as choice of merchandise, especially as selection of clothes is climate dependent.
3. Psychographic segmentation is on the basis of lifestyles like social activities, interests, leisure pursuits, needs and wants. People having similar lifestyles can make up a target market group.
4. Behavioural segmentation is on the basis of opinion on specific products or services. Many times a rating of usage of products and services is done. This helps in improving the service/product and making it different from others.