Market segmentation is the division of the total market into relatively homogeneous, but distinct segments. It is used to identify target audiences and strengthen a campaign's effectiveness in reaching selected segments. Segments usually respond to campaign elements differently and different techniques are required to reach and motivate various segments.
We will discuss Market Segments and Targets, and we will know:
What are the different levels of market segmentation?
How can a company divide a market into segments?
How should a company choose the most attractive target markets?
What are the requirements for effective segmentation?
Steps in Market Segmentation, Targeting, and Positioning
1. Identify segmentation variables and segment the market
2. Develop profiles of resulting segments
3.Evaluate attractiveness of each segment
4.Select the target segments
5.Identify possible positioning concepts for each target segment
6.Select, develop, and communicate the chosen positioning concept
Before we identify segment market we have to identify Market and know what mean.
“Market: people or institutions with sufficient purchasing power, authority, and willingness to buy” 1
“Market: A aggregate of people who as individual or as originations have need for certain products and the ability willingness and authority to purchase such products” 2
We can say, it’s consisting of all the people or organizations that may have an interest in purchasing a company’s products or services. In other words, a market comprises all customers who have needs that may be fulfilled by an organization’s offerings.
1.“Contemporary Marketing 12e”
2.Marketing Concepts and Strategies (sally Dibb, Lyndon Simkin. Marketing Concepts and Stratigick)
Define Segment Market:
“Segment Marketing: A market segment consists of a group of customers who share a similar set of needs and wants” 1
“A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. A true market segment meets all of the following criteria: it is distinct from other segments
(heterogeneity across segments), it is homogeneous within the segment (exhibits common attributes); it responds similarly to a market stimulus, and it can be reached by a market intervention” 2
“Market segmentation is the process of dividing the market into groups such that individuals/businesses within each group share common characteristics” 3
1.“Kottler Marketing Management 12e”
Market segmentation identifying different groups (segments) in a population. It is more beneficial for an organization to focus its marketing efforts on a group who have similar characteristics, needs, and wants, than it is to a group of undifferentiated people. There are many different ways a group can be segmented. The most common characteristics included: demographic (age, income), geographic (state, city), psychographic (social class, lifestyle), and use (frequency, user status). An organization can increase their revenues and decrease their expenses by focusing their efforts on a market segment. There are many different ways a group can be segmented. The most common characteristics included: demographic (age, income), geographic (state, city), psychographic (social class, lifestyle), and use (frequency, user status). An organization can increase their revenues and decrease their expenses by focusing their efforts on a market segment.
Why we segment market?
It’s hard to matching between customers without segment and knows what the specific they needs, so the segment market increases Knowledge Companies and help them to build strong profile for customers in market, to enhance opportunity for growth in profit.