The most common methods of market segmentation

Geographic segmentation can take many forms urban versus rural, north versus south, seacoasts versus interior, warm areas versus cold, high-humidity areas versus dry areas, high elevation versus low-elevation areas, and so on.

There should be something common among the individuals in the segment that the marketer can capitalise on. It is believed that the knowledge of the product and its use affects the buying decision of an individual.

As companies constantly try to balance their risk in different technologies and markets, they are left with no choice but to enter into new markets with existing products or introduce new products into existing markets or even develop new products and launch them into new markets see figure 2.

The six psychological stages through which a person passes when deciding to purchase a product.

Customer Segmentation – A Technique for Effective Marketing

For instance, private elementary schools might define their target market as highly educated households containing women of childbearing age. If the goal, however, is to develop the strategic positioning and advertising messages for a new smartphone or a new car, then occasion-based segmentation would not be applicable.

However, it needs to be combined with other factors to draw a realistic picture. This segmentation process works on a premise that consumer buying behaviour can be influenced by his personality and lifestyle.

RFM analysis in Putler is available in the customer dashboard. This is one of the most common segmentation practice among the marketers. The final step is to attach a segment code to each market segment identified and then cross-tab all of the questionnaire variables by the segments.

Go for the whole hog. A great deal of money is wasted on psychographic segmentations that never lead to any marketing actions. Personal characteristics of buyers age, education, job title and decision style play a major role in forming the customers purchasing attitude as whole.

Industrial market segmentation

Demographic segmentation almost always plays some role in a segmentation strategy. However, with the advent of digital communications and mass data storage, it has been possible for marketers to conceive of segmenting at the level of the individual consumer.

You can contact your Champions and Loyal Customers even before building a product. And airport terminals would need different degrees of access control and security monitoring than shopping centres.

If you segment the market by psychographics, there are several essential uses of the segmentation: Then show promotions to that group of people. What can you improve in your business with much better understanding of your customers.

This makes the buying institution already a highly experienced one and the suppliers are normally involved at the beginning of the decision-making process. Markets can be also segmented by hobbies, by political affiliation, by religion, by special interest groups, by sports team loyalties, by university attended, and by hundreds of other variables.

A company that sells protective coatings for human implants would adapt a totally different communication strategy for doctors than hip-joint manufacturers. If all of your marketing is direct mail, and you can identify the addresses that belong to each segment, then you can attack all segments assuming your product is relevant to all segments.

Business Segmentation

He may be reached at or This group of people will also happily refer your product to their circles of influence. Examples are Coca-Cola and some of the General Electric businesses. So you have carefully subdivided your target market into five mutually exclusive psychographic segments, and your boss tells you to develop a marketing plan to attack each segment.

Occasion-Based Segmentation People tend to behave differently, and think differently, at different times or occasions.

Market segmentation

Education levels often define market segments. First, there are companies who contact familiar suppliers some have vendor lists and place the order with the first supplier that fulfils the buying criteria.

Football is played in the fall, basketball in the winter and spring, and baseball in the spring and summer or at least this used to be the pattern. Unfortunately, cluster analysis regardless of its many types and forms has inherent limitations and seldom yields coherent market segments.

This type of segmentation is usually seen in the case of cosmetics, clothing, and jewellery industry, etc. However, promotion should not be seen in isolation, as it cannot facilitate log-lasting success, unless supported on all the relevant functions such as product, price and place.

Market segmentation

The telephone is not recommended for segmentation studies because of questionnaire length. But this note is from and may need updates. It ultimately helps them to target the niche user base by making smaller segments. Age group Segmenting market according to the age group of the audience is a great strategy for personalized marketing.

This is sometimes known as one-to-one marketing. If the goal, however, is to develop the strategic positioning and advertising messages for a new smartphone or a new car, then occasion-based segmentation would not be applicable.

Psychographic, Behaviouristic. 1. Geographic Segmentation: Geographic location is one of the simplest methods of segmenting the market. People living in one region of the country have purchasing and consuming habit which differs from those living in other regions.

Business Market Segmentation. Many firms will have business target markets in addition to consumer target markets.

For example, consider a bank or an airline. Jul 05,  · There are many other ways to segment a market, but demographic is the easiest and effective enough for most businesses. I would say that ecconomic is part of demographic and product sampling is merely a tool to find out if people will buy the Resolved.

Market Segmentation – Definition, Bases, Types & Examples

Market segmentation is the activity of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on some type of shared characteristics. 3 Processing Raw Text. The most important source of texts is undoubtedly the Web.

It's convenient to have existing text collections to explore, such as the corpora we saw in the previous chapters. Thinking about consumers in terms of the way they are represented by categorical tiers can be useful. The first tier includes the most common categories for describing consumers, such as demographics, socioeconomic status, and product usage.

The most common methods of market segmentation
Rated 5/5 based on 84 review
Market Segmentation Theory