Segmentation and Target Market
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MKT/571 - Marketing
November 22, 2014 xxxxxxxxx Segmentation and Target Market
In business marketing, market segmentation and targeting specific markets aids organizations by reducing the risks involved in decisions of how, where, when, and with whom the brand, product, or service will be advertised, directed, or promoted to. Positioning the product or service to the accurate target while controlling the marketing budget are tactics used by marketing professionals to assure reaching the largest target group and controlling costs (Boundless, 2014). Attracting the right customer is the ultimate objective of targeting specific markets by directing the research and efforts in a manner
Costco was also considered the value leader by providing the best bang for the buck. Walmart, Sam’s Club, and Target fell below Costco’s ranking in terms of popularity and value for consumers (Keshner, 2010). Psychographic characteristics typically go beyond the external focus and are not as easy to quantify, but do identify why consumers buy a particular product or service (All Business, 2014).
Geographically Costco currently operates 461 warehouse locations in 45 U.S. States. Additionally, 173 warehouses are also operated internationally in Puerto Rico, Canada, Australia, Japan, South Korea, the U.K., and Mexico. Majority-owned subsidiaries are also located in Taiwan and Korea. Costco specifically tailors product to each of these ethnically diverse locations. Currently 28% of net sales is generated from international operations with plans to expand in these markets in the near future. When considering opening new warehouse location Costco considers the region and neighborhood, the size of the area, population density, and climate (Costco Wholesale, 2013).
Behavioral characteristics appear to be directly related to how Costco operates, treats their employees, and is true to their core values. Some examples of employee treatment include paying a fair living wage,