Segmentation and Market Target Essay Example for Free

segmentation and Market Target EssayTo obtain success, and then retain success, organizations need to delineate which market segments to taper (Kotler Keller, 2012). Additional consideration is necessary to ensure that the organization can effectively serve this market segment. According to Kotler and Keller (2012), the finest marketing plans identify and deal segment differentiation by determining the demographic, psychographic, geographic, and behavioral characteristics. For example purposes, this white paper discusses segmentation and target market for Your physical composition. Consumer SegmentationOrganizations will 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 clearing purposes, a brief description of each is shown. Demographic segmentation separates consumers by variabl es such as age, family size, family life cycle, gender, income, occupation, education, religion, race, generation, nationality, and social class (Kotler Keller, 2012, p. 216). Psychographic segmentation takes into consideration the consumer values, attitudes, and lifestyles. geographical 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 core operating system Your Organization Server (2014), effective for June 1, 2014. Demographic SegmentationYour Organization is a community chartered mention yoke in capital of Virginia, Virginia. The demographic information includes age, income, and gender. When accessing the age brackets for members age 12 or senileer, management found the primary age bracket of 47 65 years old at 41.8%. The chart below provi des details on each age bracket. Based on this information, thecredit wedlock needs to determine how to shift the ordinary age of our membership to 33 46 years of age to firmly establish a strong future membership base.Gender is the final demographic item 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, go bading management to the assumption of a significantly larger male percentage of members. As shown below this assumption was incorrect thus, additional marketing focus to the female 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 available regarding the occupations of the membership however, the disorganization of the data lead to inconclusive results. Consequently, the senior management made the decision to disregard the results fr om this demographic group. Geographic SegmentationYour Organization, as a community charter credit union, faces the challenge 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 urban center of Richmond. In order for management to gain insight into the location of members households, the credit union segments the membership by city or county. The geographic information is as follows City 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, shopping center 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 unio n national averages (Open Solutions Inc., 2011). Age Income18 3435 4445 5455-6465+$125,000+Credit Driven10%10%Upscale6%, 9%$50,000 $125,000Middle 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 slight 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 end-to-end 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 classified Unites Sta tes adults using questionnaires to identify the consumers motivation and resources. Information from SBI states that with the ongoing evolution of the financial industry, consumers are becoming increasing third-dimensional (SBI, 2004). The VALS assessment 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 literary argument for Your Organization which supports 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 help 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 offset 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 embracing segment differentiation through demographic, psychographic, geographic, and behavioral characteristics. However, further improvements are necessary to achieve the ultimate tier 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). Overview 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.