The process of naming broad product-markets and then segmenting them in order to select target markets and develop suitable marketing mixes is called
The process you are referring to is called market segmentation. Market segmentation involves dividing a broad product-market into smaller, more manageable segments based on certain characteristics such as demographics, psychographics, geographic location, or behavior.
To name broad product-markets, you need to first identify the main category or industry where your product or service operates. For example, if you have a line of fitness equipment, the broad product-market could be "Fitness and Wellness Industry." This helps to establish the overall market context.
Once you have identified the broad product-market, you can then proceed to segment it. This involves breaking down the overall market into smaller, homogeneous groups of consumers who have similar needs, preferences, or behaviors. This allows for better targeting and customization of marketing efforts.
To segment the market, you can use different criteria depending on the nature of your product and the available data. For example, you can segment based on demographics (age, gender, income), psychographics (lifestyle, values, interests), geographic location (region, country, urban/rural), or behavior (usage rate, brand loyalty, buying patterns). The specific criteria used for segmentation will depend on the product, target audience, and available research data.
After segmenting the market, you then select one or more target markets. A target market is a specific segment(s) within the broader product-market that you will focus your marketing efforts on. This is where you identify the most profitable and attractive segments that align with your business objectives and resources.
Finally, with the target market(s) identified, you develop suitable marketing mixes. A marketing mix refers to the combination of product, price, place, and promotion strategies that are tailored to the specific needs and preferences of the target market. This ensures that your offering is positioned and communicated effectively to the chosen segment(s).
In summary, the process you described is called market segmentation. It involves naming broad product-markets, segmenting those markets based on specific criteria, selecting target markets, and developing appropriate marketing mixes to effectively reach and satisfy the chosen segments.