Before selecting an appropriate target market, DiGi must establish certain parameters to ensure alignment with their organization. DiGi should comprehend the product or service they wish to provide and identify their preferred business partners. Consequently, DiGi has opted to provide a variety of mobile communication services catering to all individuals utilizing mobile phones and possessing prepaid cards, post-paid plans, or similar offerings.
DiGi will then design an appropriate single market segment using one marketing mix to target the entire market. In order to determine which segmentation variables to use, DiGi will conduct research based on demographic variables, geographic variables, psychographic variables, and behavioristic variables, carving larger markets into smaller sections known as segmentation. DiGi should have knowledge of customers’ demographic variables, including age, gender, race, and more.
DiGi must consider various geographic variables such as customers’ religion, market density, and terrain to determine segmentation. Psychographic variables, including personality attributes and lifestyles, should also be taken into account. Additionally, behavioristic variables such as volume usage, end use, and benefit expectations are important factors. By analyzing these variables, DiGi can identify suitable and unsuitable segments for their organization’s niche market.
Developing marketing profiles, DiGi aims to describe their potential customers in the market through suitable research-based segmentation. By focusing on these segments, DiGi can increase their opportunities. However, for now, they will only focus on a few segments as the market is expected to grow and strategies will be further developed in the future.
Evaluating relevant market segments, DiGi considers those that can benefit the company. To assess success, they ask questions such as sizeability, growth potential, profitability, accessibility, and compatibility with resources and capabilities. This analysis helps them easily evaluate segmentations and address any issues.
Selecting specific target markets is crucial for determining the size of DiGi’s target market.
DiGi will evaluate if the market they are targeting is big enough to sustain their business. The market must meet a minimum size requirement to be viable. In fact, it could be beneficial to focus on a specific niche within those target markets. This means that DiGi needs to concentrate on a particular type of telecommunication service, such as phone prepaid cards, post-paid plans, and other services offered by DiGi. By customizing its product for its target market, DiGi can determine its success based on it.
