Market Segmentation and Targeting for MBA Capstone Projects

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Market segmentation and targeting are essential for identifying and reaching the right audience with your product or service. In your MBA Capstone project, effectively segmenting the market and choosing the right target audience can make the difference between the success and failure of a business strategy.

4.1 Steps in Market Segmentation

  • Identify Segmentation Criteria: There are several ways to segment the market, including:
    • Demographic Segmentation: Based on age, gender, income, education, etc.
    • Geographic Segmentation: Dividing the market based on location (country, region, city, etc.).
    • Psychographic Segmentation: Based on lifestyle, personality traits, values, or interests.
    • Behavioral Segmentation: Dividing the market based on buying behavior, product usage, and brand loyalty.
  • Collect Data: Use surveys, customer interviews, and market research to gather information on consumer demographics, behavior, and preferences.

4.2 Targeting the Right Market

  • Evaluate Segments: Analyze each segment for its potential profitability, size, growth rate, and accessibility.
  • Select Target Segments: Choose one or more segments that align with your company’s strengths and market opportunities.
  • Positioning: Define how your product or service will be positioned to meet the needs of the target segment. Create a unique selling proposition (USP) that differentiates your offering.

Published by Lisa