Introduction:
Divides the market in different subgroups or classes commonly known as segments. An organization faces a lot of problems in providing the same product for different customers with varied tastes. The organization identifies profitable segments having distinct choices or tastes in the market. Then, it focuses on a particular segment that has a common set of preferences and Interest. This helps the organization to focus its efforts towards a particular segment instead of providing similar products for all the segments.The media and entertainment industries have gone through radical transformation.
Bases of Segmentation:
Geographic Segmentation
- Segmenting markets based on the country or region wise.
- Market density – number of people within the unit of land.
- 4 reasons – They need to find ways to sell the products, Computerized checkout stations, new regional brands, regional brand will respond quickly.(Nokia)
Demographic Segmentation
- Widely available and related to consumer’s buying behavior.
- Age segmentation , Gender segmentation, Income Segmentation, Family life cycle segmentation.
Psycho graphic Segmentation
- Personality – reflects a person’s traits, attitude and habits. Clothing is the ultimate personality descriptor.
- Motives – Life insurance appeal to consumer’s emotional motives, Benz appeal to status- related motives, Suzuki to rational motives.(safety, Economy,relatively low price)
- Lifestyles : individuals ways of spending their time ,their beliefs .
- Flavored and frozen yogurt is promoted to consumers who are health conscious.
- Demographics: Looks into the neighborhood lifestyle categories.
Conclusion:
Thus market segmentation is very important for product and its availability.
17 Comments. Leave new
very well explained. Good article.
Market segmentation is very important because every society perceives a product in a different way. So businesses should find the society where their product is ideally suited to be used.
Amazing work. Segment marketing is crucial for the firm since it gives a base to overall product. Segmented products are homogeneous and yet differentiated. Advertising it would not only change the structure of the aggregate demand but also add more to it. Hence it is significant.
Very precise information..Keep it up!
Informative article
knowlegable
beautifully codified.
Interesting.
Well presented:);)
Making ads and marketing strategy according to the targeted segment is very important
well said..!
To understand the customers well the customers are divided into various categories. The categories above mentioned are the basic categories in which they are divided. And then one or multiple segments from these are targeted according to the suitability of the product.
Good article
Good article!
Nice compilation of information 😀 ….
I loved the idea of Psycho graphic Segmentation 😀 .
Keep it up 😀
The objective is to identify groups of customers with similar requirements so that they can be served effectively while being of a sufficient size for the product to be supplied efficiently.
Companies will not survive if the marketing strategy is dependent upon targeting an entire mass market. The importance of market segmentation is that it allows a business to precisely reach a consumer with specific needs and wants.