Market Segmentation

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Market Segmentation:

Market segmentation is the process of dividing the market into parts that are different from one another. It is the identification of potential customers who would buy your products. Different customers have different needs and it is not possible to satisfy these needs by treating all customers in a similar way. Most organisations do not have all the resources to satisfy the needs of all the customers. Therefore, it is necessary to identify the similar groups of customers and to serve one or two group with the available resources. When market segmentation is done well the members in each segment of the market are as similar to each other as possible inside a segment and are also as different as possible
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For example, sports products are used by people having a sports personality.

Behavioural segmentation: Behavioural segmentation refers to the purpose of a consumer buying a product or service. It is simply the benefit a customer seeks from a product he/she buys. Every customer looks for different benefits from different products. For example, a customer could seek various benefits from toothpaste purchased. Some buy it for teeth whitening, some for gum care, some to control tartar, some to freshen breath. Hence, the marketer needs to understand and segment the benefit sought by each customer. Some more examples of behavioural segmentation include, airlines divided into first class, business class and economy class. Similarly restaurants have non-smoking seating as well as smoking seating. Based on these factors appropriate marketing mixes can be developed. There is another variable under the behavioural segmentation which is occasion. This determines the need for the product on the right time or occasion. For example, Christmas trees have the maximum demand during Christmas. Also the rate of usage of a product is another important variable. It divides the users into light, medium and heavy users. The marketers must aim to attract the heavy users as they provide most of the business.

Targeting is the second stage of the
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