189
Section 10.1 Introduction to Marketing
Copyright Goodheart-Willcox Co., Inc.
also known as market identification. A market is
the group of people who might buy a product. A
target market is the specific group of people at
which a company aims to promote its goods and
services. These are the individuals whose wants
and needs are fulfilled by the products offered
by a business. They are also the people most
likely to buy the goods or services. Correctly
choosing the best target market is one of the most
important decisions a marketer makes. Selecting
the wrong target market can mean the business
loses an opportunity for success in a different
target market.
After the target market is selected, the market
is segmented. Market segmentation is the process
of dividing the market into smaller groups. The
segments are determined by different variables.
The variables used for market segmentation are
geographic, demographic, psychographic, and
behavioral, as shown in Figure 10-4. Within
those groups, customer types can be refined
even further by using additional variables.
Photographee.eu/Shutterstock.com
Teens are the target market for many companies that produce school supplies, such as backpacks.
Segmenting the Market
Psychographic
Demographic
Geographic Behavioral
Goodheart-Willcox Publisher
Figure 10-4 Market segmentation divides the market
into smaller groups based on certain variables.