Market Segmentation

In-Class Assignment

We learned about market segmentation. Market segmentation involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action. Market segments are the relatively homogeneous groups of prospective buyers that result from the market segmentation process. The second step is targeting, in which an organization selects the segment of customers they will focus on as the target market. Organizations will determine this based on the attractiveness of the segment.
In the business environment, some marketers would use Claritas Prizm Premier to perform market segmentation to determine possible market segments before deciding on their target market. PRIZM Premier is the industry’s most widely adopted segmentation solution. Built to help marketers find prospects faster and sell smarter, PRIZM Premier provides rich insights into every household in the U.S. including demographics, lifestyle and media preferences, shopping behaviors and technology usage. Using the most robust data on the American consumer, PRIZM Premier identifies over 68 different segments, allowing you to target your marketing with greater precision. The system, which was originally created over 30 years ago, now classifies U.S. households into one of 68 distinct categories based on Census data, leading consumer surveys and compiled household files, and other public and private sources of demographic and consumer information.
Learning Objectives in this assignment:
• Increase knowledge about how marketers would segment their markets.
• Identify similarities and differences between different markets (using zip codes).
• Determine products/services that could be marketed into a geographical area.

Your To-Do List:

1. Click on this link to go to Claritas Prizm: https://claritas360.claritas.com/mybestsegments/ (Links to an external site.)
2. Go to the Zip Code Look-up.
3. Select a zip code and then summarize the key demographic facts about in this zip code neighborhood such as household descriptions, ethnicity, age, income, etc. (Hint, hint: you can “copy and paste” the information and graphs displayed on the Claritas website to this word document file)
4. List or briefly describe the best 5 market segments generated by Claritas PRIZM’s market segmentation process. (Hint, hint: you can “copy and paste” the information and graphs displayed on the Claritas website)
5. Based on the best 5 market segments that were generated, perform “targeting” by picking a primary target market from the 5 segments,
6. Summarize the key features of residents living in this target market in terms of their demographic and psychographic information shown on the website.
7. Describe a business with a product/service that would succeed in this zip code based on the chosen target market. You must justify your answer with reason/s why this business will succeed in your chosen neighborhood.