Ch. 8 - Segmenting and Targeting Markets

The Importance of Market Segmentation

Markets are usually categorized into different market segments which caters to a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. The market segmentation plays an important role in valued business as it divides a market into meaningful segments and allows the company to define subgroups based on preferences, characteristics, wants, age, gender and more. For a brand like Godiva, it is really important to have an appropriate market segmentation. Therefore, using these marketing strategies Godiva has been focusing on their customer's wants and needs by providing comprehensive selection of products available at their stores. Godiva Chocolatier mainly work with milk, dark, and white chocolate out of which they create large variety of products such as truffles, bars, candies, cakes, drinks, biscuits, coffees etc., Godiva surely wants to reach every single customer of all ages and make them satisfied with the variety of products they carry. Over the years, Godiva has been taking every step in segmenting a market by reaching out to grocery and drugstores as well with lower priced chocolate bars and candies other than their luxury items available at Godiva Boutiques.

Selecting Target Markets

The selection of a target market is a very important decision for a company as it requires significant effort and commitment to implement an appropriate and targeted marketing mix. There are some important considerations involved before choosing a target market which includes segment size, segment growth rate, profit margins, competitors, distribution channels, role of brand, goals and resources. Godiva continues to be the leader in the premium confectionery brand worldwide. There are two key markets that Godiva targets, the affluent retail market and the corporate market segment. The affluent retail market caters to customers who have a preference for premium confectionery products and look for something exquisite to indulge. The corporate segment seeks for gifts for special events such as, weddings and parties. Godiva's target market is just not limited to these segments and events but they also produce seasonal and limited edition chocolates for all major holidays providing an increased level of business throughout the year.