Analysis of Market Segmentation and Targeting for SnapCap Lending

This report delves into SnapCap's market segmentation and targeting strategies within the context of its B2B business model, focusing on small business lending. It begins with an introduction to SnapCap, highlighting its commitment to providing secure and fast lending processes, particularly within the hybrid finance sector. The report then outlines the company's products and activities, emphasizing their focus on business health over credit scores and their commitment to simplifying the lending process. The core of the report examines different bases for market segmentation, including demographic, geographic, psychographic, and behavioral segmentation, with a specific focus on how SnapCap utilizes behavioral segmentation. It explores how factors such as occasion, user status, usage rates, and loyalty status influence SnapCap's promotional strategies, emphasizing the importance of customer engagement and readiness stages in their marketing communications. The report also touches on how technology enables SnapCap to streamline lending decisions and tailor its approach to the needs of its clients. Finally, it concludes with the significance of B2B marketing principles and the importance of building long-term relationships with their type of business, emphasizing their focus on processes and customer satisfaction.

Running head: UNDERSTANDING MARKET SEGMENTATION AND THE TARGETING
Understanding Market Segmentation and the Targeting
(SnapCap)
Name of the student:
Name of the university:
Author Note

1UNDERSTANDING MARKET SEGMENTATION AND THE TARGETING
Understanding target marketing at SnapCap:
Introduction to the chosen company:
SnapCap is a business that is committed towards the rise of small business success towards
credit following a B2B or Business to Business Model. Working with alternative lender is scary
since this is the new idea at that industry. It is the reason why there are fully dedicated towards
confidentiality and delivering of secure and fast lending processes. They are born out of the financial
crisis and opened doors official during 2012 ("Business Lending Redefined Achieve Great Things
With SnapCap", 2019). Further, they are the helping to lead revolution under hybrid finance. Thus
they can concentrate less on the credit score of the business owner and much more on the entire
business health. They are developed on the easy concept that any sort of lending never need to be
complex or based on one number. They let the clients understand properly where they stand for the
point they begin any application to the time one receive funds. The needs of business landings must
be personal that works as catalyst behind their business.
Examples of SnapCap’s products and activities supporting the business model:
Providing for small business loan is expensive and confusing measure as one move to the
wring lender. They concentrate to facilitate the quickest loan decisions at lesser rates having the
minimum quantity of hassle. Their team is equipped with the most effective financial technology
regarding alternative lending such they are equipped for serving better. The owners of business
require more than only fast lean decision with competitive rate. Moreover, they stand out of the
competition through delivering the business owners with the relationship they depend on at present
at for future ("Shop millions of handmade and vintage items on the world’s most imaginative
marketplace", 2019).

2UNDERSTANDING MARKET SEGMENTATION AND THE TARGETING

3UNDERSTANDING MARKET SEGMENTATION AND THE TARGETING
Explaining different bases for segmenting the consumer markets:
They are discussed below.
Demographic
segmentation
It distinguishes the market to groups on the bass of variable like
nationality, race, religion, education, occupation, income, family
size, age and gender. Additionally, it is simpler to calculate than the
other kind of variables.
Geographic
segmentation
It indicates to divide markets to distinct geographical units like
neighborhoods, cities regions, states and nations.
Psychographic
segmentation
It pertains to personality traits and lifestyles. At specific products, the
behavior of buying predominantly relies on personality characteristic
and lifestyles.
Behavioral
Segmentation
Here, the buyers are distinguished to different groups as per
knowledge, the distinct attitude towards, various usages of and further
responses to products. This involves the segmentations according to
user status, loyalty status of distinct usage rates, occasions, attitude and
stage of buyer-readiness (Keegan, 2017).
Bases for Segmenting Consumer Market at SnapCap:
Here, Behavioral Segmentation is used. The ways the segmenting options are achieved for
SnapCap is discussed hereafter. The segmentation of consumers through which various products
owned by the clients does little to help SnapCap improve their marketing effectiveness. The tracking
of the consumer engagement with economic lives are effective predictor of the growth of customer
relationship and the referral behavior. This helps SnapCap to develop the focus and relevance of the
marketing communications (LendingTree, 2019).

4UNDERSTANDING MARKET SEGMENTATION AND THE TARGETING
Examining how the factors affect the promotional strategies of SnapCap:
Firstly, there is the occasion. The consumers can be differentiated as per the occasions as
they intend to take loan. This helps SnapCap to expand their activities. At many times the markets
are been segmented as per the user status and as per the basis of various ex-user, different non-user,
the first-time users, potential users along with regular users of the products. SnapCap commonly
targets their potential users. Next, there is the usage rates. Activities of SnapCap can be
differentiated as per the usage rates. This indicates the foundation of dense, mediocre and light level
users. The heavy users are of smaller percentage of market. Nonetheless, they account for the greater
percentage of the overall consumption. They prefer to attract the heavy users instead of various light
users. They vary as per their promotional efforts as per that (Bailey et al., 2017). Further, there is
loyalty status. The clients can be further distinguished as per loyalty status. Examples of this are the
hardcore loyal, the split loyal, then the shifting loyal and various switchers. Then, there are
consumer readiness stages. Here, the psychological steps across which clients can pass while
deciding to take loans. The stages includes the awareness about loans, knowledge of what they
perform, product interest, and preference over competing products, product sustainability
convictions and purchasing. These campaigns are there in huge sections for moving the targeted
audiences with the stages of consumer readiness. All the factors makes SnapCap to be focused on
processes. Thus SnapCap can put intense focus on applying and process of funding such that one can
get quickest recommendation possible. In this way it helps to access the funds needed for running
the business (Turner & Knoepfler, 2016). They are also helpful for better evaluation and evaluate the
business in distinct way. Irrespective of the fact one is helpful to get qualified to make funding lies
on the basis of real business performances and never on any obsolete set of the data points that the
banks utilize. The technology can cut across the minutia of the big bank that makes the lending and
make easy recommendations on the basis of the cash flow. There is no necessity for waiting and

5UNDERSTANDING MARKET SEGMENTATION AND THE TARGETING
collateral weeks for gaining loan decisions (Palmatier, Stern & El-Ansary, 2016). Currently, the
lending is available, simple and personal. Having, the SnapCap one have the single funding outlet
that can guide towards the loan process from beginning to end. They have gone across the first-hand
lending process and it is known that by making that simple for the clients, one can gain the clients
for the lives (Roberts et al., 2016).
The B2B techniques of marketing depends on some primary principles like consumer
marketing that are executed to unique way. Since, B2B marketing is integrated nearly with business
principles. It is advisable to SnapCap to also earn minor in business. Thus, this additional
experiences with business principle and economics are helpful to better prepare to build prolonged
relationships with their type of business. Lastly, it must be reminded through B2B is critical for
success of various industrial areas, while considering the potential of the company, SnapCap must
never limit themselves to just one model.