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  • Date Submitted: 12/16/2013 7:04 PM
  • Category: Business
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Segmentation and Target Marketing
S Crown
October 21, 2013
Erica Hayes

Segmentation and Target Marketing

What is segmentation and target marketing?
Segmentation is the process breaking down a large market into smaller specific markets (Kotler & Keller, 2012). Major segments include geographic, demographic, psychographic, and behavioral segments according Kotler and Keller, 2012. Once the markets have been determined then specific markets are targeted to sell certain products. For example Pro Activ facial cleanser is targeted to teens and young adults. The size of the segments can vary from being small and specific to being very broad and general. Identifying the target market is the first step to developing a marketing strategy.
CVS Caremark has a long withstanding reputation throughout American communities and they have experienced a rise in success in recent years. They have remained successful despite the difficult economic times and now CVS has the number one pharmacy based revenue in the U.S. They have maintained their success by tracking the needs of their consumers through the use CVS ExtraCare reward program and acquiring many new locations. CVS uses market segmentation to identify their target geographic, demographic, psychographic, and behavioral segments.
Geographic segments entail nations, states, regions, counties, cities, and neighborhoods (Kotler & Keller, 2012). Geographic segments provide information about the needs and wants of the customers in that location. For example customers in Florida can expect to find sunscreen year-round while customers in Chicago will find earmuffs and gloves on the shelf in late October through March. Geographic segmentation allows marketers to targeted specific zip-codes’ needs, so the CVS next to the train station will carry fare cards in the front of the store next to the snacks. CVS uses the geographic segment to identify the area’s demographics....

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