Target Market Strategy

Market strategy is the relationship that Ataco hopes to create with its customers.  "The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships" (Marketing: An Introduction, 10th Edition. Armstrong 49).  Target segmentation helps marketers target a group of customers.  This is important to be able to better understand the needs of the market segment.  "A market segment consists of consumers who respond in a similar way to a given set of marketing efforts" (Marketing: An Introduction, 10th Edition.  Armstrong 50).  The example that the book "Marketing: An Introduction" gives is with cars.  Some consumers don't care what something cost, they just want a car that is comfortable and big.  Other consumers pay attention to price and operating economy.

"Market targeting involves evaluating each market segment’s attractiveness and selecting one or more segments to enter" (Marketing: An Introduction, 10th Edition.  Armstrong 50).  "A marketer has to try different segmentation variables, alone and in combination, to find the best way to view the market structure" (Marketing: An Introduction, 10th Edition.  Armstrong 175).  Different segmentations include geographic segmentation,  demographic segmentation,  age and life-cycle segmentation, gender segmentation, income segmentation, psychographic segmentation, behavioral segmentation, occasion segmentation, benefit segmentation, and intermarket segmentation.

Geographic:
Geographic in few words means location or area.  For Ataco, the geographic segmentation is Las Vegas.  Las Vegas is a city and therefore Ataco will be local.  It is a little difficult to properly target the market with geographic segmentation.

Demographic:
"Demographic segmentation divides the market into segments based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality" (Marketing: An Introduction, 10th Edition.  Armstrong 177).  The demographic segmentation that Ataco targets are Hispanic families.  Using a demographic segmentation does make it simpler to understand the target market.  Families sizes may be big and small.  Families isn't the only target because Ataco is really trying to reach out to everyone that has talent, creativity and is hungry.  Ataco is mainly reaching out to recent generations.  Having younger people may keep a community going for years to come.  Younger people also have more energy to create and bring new ideas.

In order to be able to better target the market, Ataco must spend more time carefully analyzing the segments.  "A marketer has to try different segmentation variables, alone and in combination, to find the best way to view the market structure. Table 6.1 outlines the major variables that might be used in segmenting consumer markets" (Marketing: An Introduction, 10th Edition.  Armstrong 175).  "Yet, business marketers also use some additional variables, such as customer operating characteristics, purchasing approaches, situational factors, and personal characteristics" (Marketing: An Introduction, 10th Edition.  Armstrong 183).