tags # # # #
The division of a market into different homogeneous groups of consumers is known as market segmentation.
Rather than offer the same marketing mix to vastly different customers, market segmentation makes it possible for firms to tailor the marketing mix for specific target markets, thus better satisfying customer needs. Not all elements of the marketing mix are necessarily changed from one segment to the next. For example, in some cases only the promotional campaigns would differ.
A market segment should be:
- measurable
- accessible by communication and distribution channels
- different in its response to a marketing mix
- durable (not changing too quickly)
- substantial enough to be profitable
A market can be segmented by various bases, and industrial markets are segmented somewhat differently from consumer markets, as described below.
Consumer Market Segmentation
A basis for segmentation is a factor that varies among groups within a market, but that is consistent within groups. One can identify four primary bases on which to segment a consumer market:
-
Geographic segmentation is based on regional variables such as region, climate, population density, and population growth rate.
-
Demographic segmentation is based on variables such as age, gender, ethnicity, education, occupation, income, and family status.
-
Psychographic segmentation is based on variables such as values, attitudes, and lifestyle.
-
Behavioral segmentation is based on variables such as usage rate and patterns, price sensitivity, brand loyalty, and benefits sought.
The optimal bases on which to segment the market depend on the particular situation and are determined by marketing research, market trends, and managerial judgment.
Business Market Segmentation
While many of the consumer market segmentation bases can be applied to businesses and organizations, the different nature of business markets often leads to segmentation on the following bases:
-
Geographic segmentation - based on regional variables such as customer concentration, regional industrial growth rate, and international macroeconomic factors.
-
Customer type - based on factors such as the size of the organization, its industry, position in the value chain, etc.
-
Buyer behavior - based on factors such as loyalty to suppliers, usage patterns, and order size.
Profiling the Segments
The identified market segments are summarized by profiles, often given a descriptive name. From these profiles, the attractiveness of each segment can be evaluated and a target market segment selected.
The End, what is next?
Note: the page content was squeezed for you with a focus on , by Paperfree Magazine Team, editor -
Go ahead and share it!
check this out, Market Segmentation Tweet
Want more content related to "" ? Subscribe PaperFree Magazine!
We will send an email from PaperFree Magazine with the top content on this subject: , .
- PUBLISH CONTENT
- Real Estate Investment Principles by Billionaire Bruce Flatt
- Real Estate Investing Basics: 2 Ways of Real Estate Investment
- Back to Basics: Understanding Real Estate
- 5 Best Ways to Invest in Real Estate For Starters
- 7 Ways On How To Make Money In Real Estate
- 6 Factors To Look For Before Investing in Real Estate
- Return on Investment (ROI) In Real Estate & Its Calculation
- How Much Money To Invest in Real Estate
- Real Estate Business: 7 Challenges You Need To Know Before You Start
- Real Estate Investment Trust (REIT)
- Introduction of Real Estate Investment Trusts (REITs)
- Direct Real Estate Investment Vs REITs - Which One To Choose?
- REITS, Real Estate Funds & Real Estate Mutual Funds: The Comparison
- Equity Vs Mortgage Real Estate Investment Trust
- Assessing A Real Estate Investment Trust (FFO and AFFO)
- Real Estate Investment Trust (REIT) and Its Risks
- Counties by population based on United States Census
- Trump's tax report and tax avoidance leveraging Real Estate business
- Demographic trends are reshaping the real estate market in the US