Segmentation and Market Target Essay Example for Free

Segmentation and Market Target EssayTo master advant sequence, and accordingly retain success, giving medications need to determine which securities industry plane sections to focus (Kotler Keller, 2012). Additional consideration is necessary to fit that the organization can effectively serve this market segment. jibe to Kotler and Keller (2012), the finest marketing plans identify and embrace segment differentiation by determining the demographic, psychographic, geographic, and behavioral characteristics. For example purposes, this white paper discusses sectionalisation and target market for Your nerve. Consumer SegmentationOrganizations entrust not benefit from mass marketing, however will gain success through the insight of consumer segmentation. As mentioned above, the four primary segmentation variables are demographic, psychographic, geographic, and behavioral characteristics. For clarification purposes, a brief description of each is shown. Demographic segmen tation separates consumers by variables such as age, family size, family life cycle, gender, income, occupation, education, religion, race, generation, guinea pigity, and tender class (Kotler Keller, 2012, p. 216). Psychographic segmentation takes into consideration the consumer values, attitudes, and lifestyles. Geographic segmentation addresses the variables of region, climate, population growth rates and density. Lastly, behavioral segmentation considers price sensitivity, usage, brand loyalty, and attitudes. Examples of Your Organizations segmentations is below, using data provided by the organizations nerve operating system Your Organization Server (2014), effective for June 1, 2014. Demographic SegmentationYour Organization is a fellowship chartered trust amount in Richmond, Virginia. The demographic information includes age, income, and gender. When accessing the age brackets for members age 12 or older, management found the primary age bracket of 47 65 years old at 41.8%. The chart below provides details on each age bracket. Based on this information, thecredit centre needs to determine how to shift the average age of our membership to 33 46 years of age to firmly establish a strong future membership base.Gender is the final demographic position the credit union reviews. Each gender is broken down within the age brackets. The credit union was originally formed to serve the Richmond employees of DuPont, leading management to the assumption of a significantly large male percentage of members. As shown below this assumption was incorrect thus, additional marketing focus to the distaff segment is ideal. Currently, the credit union focuses on largetruck, motorcycle, and SUV loan target mailings, leaving the mid-size and minivan opportunities unaddressed.Information was for sale regarding the occupations of the membership however, the disorganization of the data lead to inconclusive results. Consequently, the senior management made the decisio n to cut off the results from this demographic group. Geographic SegmentationYour Organization, as a community charter credit union, faces the contend of a small geographic area in which to serve consumers. Potential membership must live, work, worship, volunteer, or attend school in the counties of Chesterfield, Hanover, Henrico, and the city of Richmond. In order for management to gain insight into the placement of members households, the credit union segments the membership by city or county. The geographic information is as follows metropolis of CountyPercentage of MembershipChesterfield43.21%Hanover14.38%Henrico10.63%City of Richmond28.97%Undetermined2.8%Behavioral SegmentationYour Organization reviews the following behavioral groups, credit driven, fee driven, upscale, middle market, middle income depositor, and low income depositor. These groups are then cross compared with age and income brackets. The chart below provides a visual on Your Organizations percentages, along with credit union national averages (Open Solutions Inc., 2011). Age Income18 3435 4445 5455-6465+$125,000+Credit set10%10%Upscale6%, 9%$50,000 $125,000 shopping centre Market26%, 24%Middle Income Depositor17%, 17%Less than $50,000Fee Driven19%, 18%Low Income Depositor22%, 22%Your Organization Credit Union National AveragesBased this information the credit union should focus on further targeting the upscale segment and relying less on the fee driven. As regulations continue to change, fee income will potentially decrease. Psychographic SegmentationIn regard to the psychographic segmentation, Your Organization has relied on member loyalty throughout the years. However, as economic turbulence continues to impact the organization, per the Vice-President of Marketing (2014), the credit union is seeking to further exploration into psychographic segmentation. According to Kotler Keller (2012), Strategic Business Insights (SBI) VALS framework signifies the values and lifestyles of c lassified Unites States adults using questionnaires to identify the consumers motivation and resources. Information from SBI states that with the ongoing evolution of the pecuniary industry, consumers are becoming increasing multidimensional (SBI, 2004). The VALS mind takes into consideration for channel or interface preferences, trust in institutions, control within the household, and much more to determine financial patterns. The credit union would benefit from conducting research on the psychographic segmentation of the membership, as no longer demographic and behavioral segmentation is enough. Positioning StatementA positioning statement for Your Organization which accepts the current brand and strategies is as follows. Your Organization will assist our community members in reaching their financial goals. We are committed to supporting and serving fellow community members through financial needs, charity events, and volunteering. Our credit union promises to serve ourmembers through each stage of life. This supports the current psychographic segmentation of brand loyalty, and a willingness to support the membership financially through each stage of life. ConclusionRegardless of the organization, the ability to obtain success, and then retain it is due in part to ability to focus on the correct market segments. However, the organization must ensure that it possesses the resources to this market segment. Your Organization is working to create the highest level of marketing plans by identifying and cover segment differentiation through demographic, psychographic, geographic, and behavioral characteristics. However, further improvements are necessary to achieve the ultimate mark of success.ReferencesYour Organization Server. (2014). Segmentation data. Retrieved from Your Organization on June 1, 2014. Kotler, P., Keller, K. L. (2012). Marketing management (14th ed.). Upper Saddle River, NJ Pearson Prentice Hall. Open Solutions Incorporated. (2011). Overv iew analysis. Retrieved from Your Organization corporate library on June 1, 2014. Strategic Business Insights. (2004, June). Segmentation in the twenty-first century Financial behavior of the VALS segments. Retrieved from http//www.strategicbusinessinsights.com/cfd/MRsummaries/MR.VI-09.shtml.