My Profile
Active Members
TodayLast 7 Days
more...
Awards & Gifts
Online Exams
Fresher Jobs
Our fresher job section is exclusively for fresh graduates! Find jobs for freshers in major Indian
cities including Bangalore, Chennai, Hyderabad, Pune or Kochi
Resources
Find educational articles, blogs, discussion threads and other resources.
Colleges
Find details about any college in India or search for courses.
Advertisements
|
Market Segmentation
Posted Date: 30 Apr 2008 Resource Type: Articles/Knowledge Sharing Category: Education
|
Posted By: Pournami Member Level: Diamond
Rating:  Points: 6
|
|
|
Market Segmentation
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.
• Company type - based on factors such as the size of the organization, its industry, position in the value chain, etc.
• Behaviorial segmentation - based on factors such as loyalty to suppliers, usage patterns, and order size.
|
Responses
|
No responses found. Be the first to respond and make money from revenue sharing program.
|
|
|