Page 0
Description To better understand the market and then to deliver it with the best quality of products, the organization divides markets into segments. Market segmentation is the process of dividing market into different groups of homogenous needs. Market segmentation is not a very old concept. Every firm these days is adhering to market segmentation. The reason is that it’s better to apply the customized marketing mix for a particular segment rather than applying the same marketing techniques through the market. This way customer satisfaction is achieved to a great extent by specifically focusing on their needs. It should be ensured by the marketers that the market segment should be measurable, accessible, different in response, durable and have potential for profits. Consumer Market Segmentation Market can either be segmented on basis of consumers or on the basis of industries. When the market is segmented on consumer basis, it takes in consideration different factors that varies in different groups but are same in one group. There are four bases to segment the consumer market, they are:
Geographical Segmentation: that is based on regional variables. For instance, population density, climate, growth etc. Demographical Segmentation: is done on the basis of variables as age, sex, education, income, occupation etc. Psychographic Segmentation: is done on variables as lifestyle, attitude and values. Behavioral Segmentation: is based on variables as brand loyalty, price sensitivity, patterns and consumption rate and benefits retrieved.
Business Market Segmentation The consumer market is segmented on the above four factors. However these factors vary for different markets. To know which factor is most suitable for segmenting a market group is by conducting marketing research, and observing the trends. While the consumer market is mostly divided into segments on the basis of above four segments, yet the business market division is also very important. The business market is divided on the following basis:
Geographic Segmentation: is based on regional variables that differ with the geographic segmentation of consumer market. These variables are international macroeconomics, industrial growth rate and customer density. Customer Type: is based on size of the industry, organization and its place in value chain. Buyer Behavior: is based on variables as customers’ consumption pattern, size of orders and suppliers loyalty.
The market segmented that is identified is summarized by profiles with description. Then a profile can be taken in consideration and the custom activities can be applied to them. The results from that particular segment are recorded and evaluated.
Page 1
Reference: http://www.researchomatic.com/Market-Segmentation-90168.html
Page 2