Advertising and Public Relations
Quesadra D. Goodrum
Class Discussion Phase 2
Advertising and Public Relations
Colorado Technical University
Instructor: Heather Weller
10/13/2014
TARGET SEGMENT IDENTIFICATION AND SELECTION
In marketing there are some strategies which can be used so as meet the needs and demands of customers effectively. In viewing these strategies it is of importance to understand some of the concepts which are to be used.
Demographics:
It shows the statistics concerning a certain given data. Normally used to give the trends and changes that have been occurring in the past. It includes the use of different variables. Therefore in marketing, demographic segmentation can be further explained as dividing the market into different variables such as age and gender so as to be able to meet the needs of the customers with ease and effectiveness.
Psychographics:
It is the study of lifestyle and behavior of people. In marketing, psychographic segmentation is dividing the targeted market on the basis of the activities, interests and opinions of customers. Customers are divided according to their personal activities and their needs are therefore met as per their lifestyles’ patterns.
Market segmentation:
Is a marketing strategy whereby an organization identifies its targeted customers in the market and into small groups. The groups are divided according to common needs, preferences and priorities of the customers. After the division it designs a plan on how to reach each group of customers and satisfy them. This strategy is basically in the effort of understanding the needs of customers in a deeper length so as to fully satisfy them.
A bank can meet its high-level strategic goals by using the above strategies. For example it can use demographic segmentation to identify the age target section. Whereby it should have services which it can offer to the minors as well as adults but in a different manner. In such a case it can come up with minors’ saving account which is more of an financial management program which will enable parents save for their children so as not to face difficulties in future. So this implies that the parents with young kids will be the targeted group and this will also generated income to the bank since it will be able to offer these services to its potential and current customers.
In using psychographic segmentation a bank can come with a service to encourage those customers who like to travel for leisure to bank with them in a certain account and in the end of every year they will have a road trip to Africa. This shows that the targeted customers are those who like to have fun. Therefore, such a strategy the potential customers will be attracted and in return will open up the account involved with such matters so as to meet their luxurious need of travelling and having fun. This in the end will be advantageous on the bank since it will be able to meet its goal.
Loans
Loans are a main segment in the banking sector. The public will always need funds for development so as to sustain themselves. In daily life people need to provide for themselves with the basics needs. Food, clothing and shelter all require some capital so as to be satisfied. As for wants, most of them have monetary value attached to them. Therefore money is still needed. Different people have different lifestyles patterns, In order to maintain current lifestyles funds availability is a major factor. Therefore, banks can take these facts to their advantage to have the loan segment so as to make the public borrow funds easily and since during repayment there are interests it will be beneficial to them. As a result a bank is able to increase more of it revenue through such a mechanism.
