Marketing Strategy: Segmentation, Target Markets, and SERVQUAL

Marketing Fundamentals: MIS and SERVQUAL

Marketing Information System (MIS)

The MIS conducts internal studies within a company to gather relevant marketing data.

SERVQUAL Model: Service Quality Research

The SERVQUAL Model is a type of market research focusing specifically on service quality. It measures customer expectations against perceived performance across five dimensions:

• Tangibility: Appearance of facilities, personnel, equipment, and use of logos.
• Reliability: Opportune opening, regular times, and consistent results.
• Responsiveness: Personal training, awards, and incentives to increase identification and prompt service.
• Security: Diplomas and recognition, media references, and experiences of other customers.
• Empathy: Suggestion boxes, surveys and assessments, extra service relationships, and listening to customer suggestions.

Market Segmentation Strategies

Segmentation is the process of dividing a market into distinct groups of buyers.

Types of Segmentation

• Demographic: Characteristics of the individual, such as population data and personal traits.
• Psychographic:
  • Social: Relationship with the environment.
  • Psychological: Emotions and values.
• Geographic: Location, territory, climate, and physical location.
• Behavioral:
  • Benefit: What the customer hopes to receive from the product.
  • Rate of Use: Customer loyalty and frequency of purchase.

The Segmentation Process (6 Steps)

1. Select the product category market.
2. Choose a basis for segmentation.
3. Select the segmentation descriptors.
4. Profile and analyze the segments.
5. Select the target market.
6. Design, implement, and maintain the marketing strategy.

Defining the Target Market

A target market is a set of consumers to whom the company directs its goods or services.

Key Features of a Target Market

• Measurable: Knowing the size and composition of the target market.
• Accessible: The ability to reach the consumer and meet their expectations.
• Profitable: Sufficient size and potential to generate sales.
• Actionable: The likelihood that the target market will purchase the product.

Importance and Benefits of Segmentation

Effective segmentation provides numerous advantages:

• Improves the quality of the service offered.
• Adds value through adequate benefits.
• Improves sales in stagnant markets.
• Allows for effective reaction to the target market needs.
• Reduces brand cannibalization.
• Responds effectively to the search for diversity.

Strategic Advantages of Segmentation

• Ability to adapt the product precisely to the market.
• Efficient use of resources and effort.
• Facilitates segment achievement and specialization.
• Improves profitability.
• Generates barriers to entry for competitors.
• Allows the company to anticipate competition.
• Generates competitive income and advantage.