Description And How Segmented Market Segmentation

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Description/How Segmented

Market Segmentation

Market segmentation is a strategy that involves breaking down a business’s current target market into smaller subsets in order to establish a more defined set of market categories. It is important to first look at the tools available to assist with segmenting the market prior to beginning your segmentation. These tools include the following:

Characteristics of Buyers The typical consumer of precision machined parts includes distributors, original equipment manufacturers, wholesalers, and retailers.

Product Use For Falmer, their consumers typically purchase items in one of four categories including heavy truck and truck related parts, high performance automobile parts, hydraulic
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However, once the useful segments are discovered, the information found can be utilized to assist the company to achieve a better understanding of who their correct target market is and allow them to understand how to advertise to them appropriately. For Falmer, it was determined that the general market segments that best suit them include the following:

Behavioral Segmentation This specific segment describes the consumers behavior toward the products that they purchase. For example, most customers in the precision machined parts industry rely on variables including low price, high quality, short lead time and good service. If they receive these specific characteristics from Falmer, it will most likely increase their usage rate, loyalty and readiness to buy products that they require. In order to meet these customer specifications, Falmer must work toward obtaining their ISO 9001 certification to prove their quality exists, be open to the possibility of a second shift in order to decrease their lead time on products, and continue their impeccable customer service.

Geographic Segmentation It is important to ensure that the suppliers are within a certain geographical location of the customers in which they would like to serve. For manufacturing facilities, shipping costs can be a reason that a customer selects one supplier over another. It may be beneficial for Falmer to cover the shipping costs for their products for
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