Manager
Market Segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs, and then designing and implementing strategies to target their needs and desires using media channels and other touch-points that best allow to reach them.
Market segments allow companies to create product differentiation strategies to target them.
Criteria for segmenting
An ideal market segment meets all of the following criteria: * It is possible to measure. * It must be large enough to earn profit. * It must be stable enough that it does not vanish after some time. * It is possible to reach potential customers using the organization's promotion and distribution channel. * It responds consistently to a given market stimulus. * It can be reached by market intervention in a cost-effective manner. * It is useful in deciding on the marketing mix.
What are the main ways of segmenting a market?
There are quite a number of potential market segmentation bases (also referred to as segmentation variables), which an organization could effectively utilize to come up with market segments.
As a simple guide, segmentation bases can be classified into five major categories: * geographic, * demographic, * psychographic, * behavioral
By using any of these segmentation bases, either individually or in combination, a company can construct market segments for evaluation to help them select appropriate target markets.
Basis for segmenting consumer markets 1. Geographic segmentation
Geographic bases allows us to segment a market that is spread over a large geographic area into sub-markets that cover smaller geographic areas. Geographic segmentation usually involves dividing up geographic markets by using existing political boundaries, natural climatic zones, or population boundaries.
The market is segmented according to geographic criteria—nations, states, regions, countries, cities, districts. With
Market segments allow companies to create product differentiation strategies to target them.
Criteria for segmenting
An ideal market segment meets all of the following criteria: * It is possible to measure. * It must be large enough to earn profit. * It must be stable enough that it does not vanish after some time. * It is possible to reach potential customers using the organization's promotion and distribution channel. * It responds consistently to a given market stimulus. * It can be reached by market intervention in a cost-effective manner. * It is useful in deciding on the marketing mix.
What are the main ways of segmenting a market?
There are quite a number of potential market segmentation bases (also referred to as segmentation variables), which an organization could effectively utilize to come up with market segments.
As a simple guide, segmentation bases can be classified into five major categories: * geographic, * demographic, * psychographic, * behavioral
By using any of these segmentation bases, either individually or in combination, a company can construct market segments for evaluation to help them select appropriate target markets.
Basis for segmenting consumer markets 1. Geographic segmentation
Geographic bases allows us to segment a market that is spread over a large geographic area into sub-markets that cover smaller geographic areas. Geographic segmentation usually involves dividing up geographic markets by using existing political boundaries, natural climatic zones, or population boundaries.
The market is segmented according to geographic criteria—nations, states, regions, countries, cities, districts. With