Identify and profile distinct group of buyers who might require separate products and/or marketing mixes. Market segmentation can be segmented in different ways.
MASS MARKETING- is when the seller engages in the mass production, mass distribution \and mass promotion of one product for all buyers it is also create s the largest potential market which leads to the lowest costs, which in turn can translate into either lower prices or higher margins.
LEVELS OF SEGMENTATION
Four Levels of Level of Segmentation:
1. SEGMENT MARKETING- It consists of a large identifiable group within a market. 2. NICHE MARKEITNG- It is more narrowly defined group, typically a small market whose needs are not being well served by identifying niches, marketers dividing segment into sub segments or by defining a group with a distinctive set of traits who may seek combination of benefits. 3. LOCAL MARKEITNG- Marketing programs being tailored to the needs and wants of local customer groups. 4. INDIVIDUAL MARKETING- The ultimate segmentation leads to “segments of one “, customized marketing” or “one to one”
FORM OF INDIVIDUAL MARKETING
* SELF MARKETING- is a form of individual marketing in which the individual consumer takes on more responsibility for determining which products and brands to buy.
PATTERNS OF MARKET SEGMENTATION
Three (3) different patterns that can be emerge:
1. Homogeneous Preferences- shows a market where all the consumers have roughly the same preference. 2. Diffused Preferences- showing that the consumers vary greatly in their preferences. 3. Clustered Preferences- market might reveal distinct preference clusters called natural market segment.
MARKET SEGMENTATION PROCEDURE
Three (3) step approach used by marketing research firms.
1. Survey stage- the researcher conducts exploration interviews and focus groups to gain insight into consumer motivations, attitudes and behavior. 2....