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Segmentation and Target Market Paper

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Segmentation and Target Market Paper
State Farm originated in Bloomington, Illinois June 7, 1922 and was founded by retired farmer, George J. Mecheire. Mecheire deemed State Farm insurance company owned by its policy holders, which specialized solely in automobile insurance for farmers. . The company now has a large grouping of insurance and financial services companies throughout the United States and Canada. “State Farm is ranked 41th in the Fortune 500, which list companies based on general revenue for the current year” ("Fortune 500", 2014).
State Farm continues to lead the insurance market by realizing when it is time to make a change. The company primarily deals in the baby boomer market as this is the majority of their business even today. However, when realizing that its competitors are focusing more on price point and online functionality, the company chose to still keep its “good neighbor” and personal agent branding but offer consumers the ability to still do a bit of the leg work on their if they chose to.
State Farm and Demographic Segmentation
Among the most common market segmentation parameters, demographics play an important role in an organization’s upcoming marketing strategies. With this strategy a company might simply divide a larger area into specific consumer traits. Traits such as age, income, gender, race, occupation, education, race, gender, marital status, occupation, education and income are among the most commonly considered demographics segmentation traits for insurance companies. Demographic information is about the equivalent of what one might find when researching Census Bureau reports or other sources such as American fact finder. Demographic information is an excellent tool when deciding where to place a new location for the business as the information will entail where your target market is located. Demographics give a...

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