SEGMENTATION AND TARGET MARKET PAPER
Segmentation and Target Market Paper Marketing strategies such as segmentation are based on dividing a larger population of consumers into smaller segments that can be grouped by common needs and or priorities. These different groups can then be targeted by different marketing methods to entice them to purchase goods and services (Wikipedia-Market Segmentation, 2014). Marketing segmentation can be very important for a company because it can help the company expend its’ resources more efficiently. This will increase the return on investment of the money spent on marketing. It allows a company to target those consumers most likely to purchase from them. Best Buy is an electronics chain superstore that employs marketing segmentation and target marketing to more effectively increase sales.
Marketing Segmentation
Demographics
Best Buy’s largest customer demographic population is the Baby Boomer population. Their most vital population segment is actually the young twenty-something’s to early 30s adults who are college educated and do not have children. This population is important because of their perceived preference for discriminating tastes and their exposure to a wider range of products and services due to their college education. Not having children is also an important factor as they can potentially have more disposable income to spend on themselves (Smith, 2012).
Psychographics
The psychological variables for this demographic population is that they tend to seek immediate gratification, are prepared to make immediate purchases, and tend to not want sales person interactions unless needed (Smith, 2012). Best Buy has responded to this mind set by having more inventory on the shelves and available for purchase immediately. The customer does not have to wait to get it delivered from a central warehouse. The