Market Segments and Sectors

Target Market

In order to identify the wants and needs of a target market, the designer first has to identify what the target market is.
These can be considered in two ways:

Geographical sectors focus on the values, culture and characteristics of purchasers in that region along with purchasing power.

Client-based sectors focus on consumers.
Consumers are commonly categorized into industrial, public sector and commercial consumers.

The Ultimaker 3 is a 3D printer which addresses multiple market sectors.
It targets the commercial sector by appealing to engineers/designers (start-ups).
It also targets the public sector as it is intended for use in schools as well.

The Metal 3D printer from HP only addresses the industry sector on the other hand.

Bic Pen targets the market sectors consumers, industry, public sector and commercial.

Markets divided up into smaller segments where there are consistent groups of customers that have similar characteristics and tastes.
Market segments are commonly classified by income, profession, age, family, values and behavior.
By dividing up a market into segments, a company can target each individually through promotional campaigns.
The segmentation allows the company to focus on the particular characteristics and wants of the consumers and allows it to better relate its products to them.

Income (high, middle and low levels of finance).
Daewoo and Corolla vehicles for price sensitive customers whereas Mercedes and BMW aim their cars at the more affluent.

Profession (types of jobs one has which can influence social groups or personal interests).
Marketing e-book for executives.

Age (babies, toddlers, tweens, teenagers, young adults, middle aged to the elderly).
Such as diapers/nappies for babies, toys for children, clothes for teenagers.

Family (single no kids, single kids, married two kids, empty nesters etc).
A family with kids would purchase furniture that is more family orientated as opposed to a single living alone (trendy furniture).

Values (the ethical, worthiness or importance of something that is held by an individual or group, opinions).
Environmentally friendly products vs a throw away society.

Behaviour (shopping mannerisms, loyalty, occasion buying, such as impulsive, online vs brick ‘n mortar, or the researcher).
Buying turkeys at christmas and thanksgiving (occasion buying), Apple customers (loyalty).

A group of products that have common classification criteria.
Members of a product family normally have many common parts, assemblies, production processes and processing methods, are branded consistently and share aesthetic characteristics.

Companies and designers will develop a successful product or product range into product families.
This further develops a successful market segment that is already familiar with the original product. For example, iPod then iPhone, then iPad etc.