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.
Methods for Segmenting Consumer Markets 1 . Geographic segmentation Marketers may segment according to geographic criteria?nations, states, regions, countries, cities, neighborhoods, or postal codes. 2.Cryptographic segmentation Chirography's involves using sciences like psychology and demographics to better understand consumers. Cryptographic segmentation divides consumers according to their lifestyles, personality, values and social class. 3.
Behavioral segmentation Behavioral segmentation divides consumers into groups according to their knowledge of, attitude towards, use of or response to a product. 4. Segmentation by occasions Segmentation according to occasions relies on the special needs and desires of consumers on various occasions - for example, for products for use in relation with a certain holiday. . Segmentation by benefits Segmentation can take place according to benefits sought by the consumer or according to perceived benefits which a product/service may provide. Bases for Market Segmentation Market segmentation can be defined as the process of dividing a market into different homogeneous groups of consumers.
By segmentation, large heterogeneous markets are divided into smaller segments that can be managed more efficiently and effectively with products and services that match to their unique needs.So, market segmentation is beneficial for the companies serving larger markets. Criteria for Selecting Market Segments 0 Measurable A segment should be measurable. It means you should be able to tell how many potential customers and how many businesses are out there in the segment. Accessible A segment should be accessible through channels of communication and distribution like: sales force, transportation, distributors, telecoms, or internet.
0 Durable 0 Substantial Make sure that size of your segment is large enough to warrant as a segment and argue enough to be profitable. Unique Needs Segments should be different in their response to different marketing efforts (Marketing Mix). Bases for Consumer Market Segmentation 1 . Geographic Segmentation In geographical segmentation, market is divided into different geographical units. 2.
Demographic Segmentation In demographic segmentation, market is divided into small segments based on demographic variables. 3. Cryptographic Segmentation A segment having demographically grouped consumers may have different cryptographic characteristics. 4. Behavioral Segmentation is considered most favorable
