Failed to execute CGI : Win32 Error Code = 2

Market Segmentation

Knowledge Center





Description of Market Segmentation. Explanation.

 

Market SegmentsDefinition Market Segmentation. Description.

Market Segmentation is the marketing process of identifying and breaking up the total market into groups of potential customers with similar motivations, needs, characteristics or behavior, who are likely to exhibit homogeneous purchase behavior.


Undertaking this process allows marketing efforts to be targeted at select groups. In determining their segmentation strategy, organizations can choose to pursue the whole market with a single offer (Undifferentiated Marketing), pursue only certain segments with specific offers (Niche Marketing) or pursue individual customers with specific offers designed just for them (Customization).


The process enables a company to develop a suitable Marketing Mix for each of the chosen market segments.

A Market Segment is a (relatively) homogeneous group of customers with similar characteristics, wants, needs or behaviors which is likely to respond similarly to a given marketing mix.
 

5 Ways or bases of market segmentation

  1. Geographic Segmentation (continents, countries, nations, states, regions, counties, or cities).

  2. Demographic Segmentation (age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation, etc). Compare: JICNARS Scale

  3. Psychographics Segmentation (values, attitudes, social class, lifestyle, personality characteristics, aspirations). Compare: Values and Lifestyles

  4. Behavioral Segmentation (consumer knowledge, attitudes, uses, or responses to a product, occasion, benefits sought, loyalty status, user status, buyer readiness).

  5. Product differences.

Steps in segmentation. Process

  1. Identify the total market.

  2. Determine the segmenting dimensions.

  3. Profile each segment.

  4. Assess segment attractiveness.

  5. Select target market.

  6. Determine positioning (marketing mix) for each segment.

Segmentation Requirements



To be useful, market segments must be:

  • Measurable
  • Accessible
  • Substantial
  • Differentiable
  • Actionable

Strengths of Segmentation. Benefits

  • Organization get to know its customers better.

  • Provides guidelines for resource allocation.

  • It helps focus the strategy of the organization.

Limitations of Segmentation. Disadvantages

  • Targeting multiple segments increases marketing costs.

  • Segmentation can lead to proliferation of products.

  • Narrowly segmenting a market can hamper the development of more broad brand equity.

Book: Dowling, G. - The art and science of marketing; Marketing for marketing managers -

Book: Kotler, P., Brown, L., Adams, S. & Armstrong, G. - Marketing, 6th edition -

Book: Simpson, P.M. - Marketing segmentation and target markets; Marketing best practices; 2nd edition -


Special Interest Group - Market Segmentation


Special Interest Group (315 members)


Forum - Market Segmentation  

Discussions about Market Segmentation.


  Disadvantages of Segmentation
I kindly request you to please provide with some more limitations or disadvantages of segmantation. (...)
 
 
 
 
  Disadvantages of Demographic Segmentation
I need to know the drawbacks of demographic segmentation. Thanks (...)
 
 
 
 
  Segmentation Examples
I need 2 examples of segmentation process for psychographic and behavioral in retail consumer produc (...)
 
 
 
 
  Is Segmentation of Taxpayers Possible?
How successfully could segmentation be applied to servicing taxpayers treated as customers of the go (...)
 
 
 
 
  Forward and Backward Segmentation
When you have selected the data, segments should be deduced. Two types or approaches of segmentation (...)
 
 
 
 
  Segmentation and Marketing Mix
How are Segmentation and the Marketing Mix interrelated? (...)
 
 
 
 
  Conditions for a Segment
A group of potential buyers or customers can be called a "segment" if the following four conditions (...)
 
 
 
 
  Market Segmentation and Target Marketing
The concepts of market segmentation and target marketing, are they the same? (...)
 
 
 
 
  Market Segmenting Process
This article discusses and explains the various steps in the market segmentation process and criteri (...)
 
 
 
 
  Ideas for Demand Segmentation based on the Total Need for a Product
Traditionally, marketers have been interested in cracking demand by making more sales using tools li (...)
 
 
 
 
  Target Groups of Puma
I am trying to find out what are the target groups of Puma. Which consumers are buying their shoes, (...)
 
 
 
 
  Segmentation Requirements
Market segmentation requires accurate and reliable info, and a triangulation of the major environmen (...)
 
 
 
 
Hot Trading Market Analysis
I have been asked to put together a presentation with this title: What does a ".Company's Name" Trad (...)
 
 
 
 

Best Practices - Market Segmentation

Here you find the most valuable discussions from the past.



Expert Tips - Market Segmentation

Here you will find advices by experts.


 

The Importance of Customer Differences in Markets with Network Effects: the Limits of Scale

Network Effect, Network Strategy, First Mover Advantage, Second-mover Strategy, Customer Intimacy, Market Segmentation (...)
 
 

Resources - Market Segmentation

Here you find powerpoint presentations, micro-learning videos and further information sources.


Target Marketing and Market Segmentation

Target Marketing, Market Segmentation, Strategy (...)
 

Marketing Research: Introduction and Techniques

Marketing Research, Qualitative Marketing Research Methods, Research Experiments (...)
 

Marketing Strategy: Opportunity Analysis; Targeting and Segmentation

Marketing Strategy, Target Marketing, Market Segmentation (...)
 

Customer Segmentation by Emotion: The EMO-index

Consumption Behavior (...)
 

Compare with: 3 C's (Ohmae)  |  Multi Channel Marketing  |  Target Marketing  |  Positioning  |  Marketing Mix  |  Extended Marketing Mix (7-Ps)  |  4S Web Marketing Mix  |  Competitive Environment  |  Competitive Intelligence  |  Competitive Position  |  Values and Lifestyles  |  Profit Pools  |  SOSTAC

Special Interest Group Leader

You here? Sign up for free


 
 

Return to Management Hub: Marketing  |  Strategy


More on Management  |  Return to Management Dictionary  | 

 

This ends our Market Segmentation summary and forum.



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2019 12manage - The Executive Fast Track. V15.2 - Last updated: 12-12-2019. All names of their owners.