Market Segmentation

1550 Words7 Pages
MARKET SEGMENTATION 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. Market segments allow companies to create product differentiation strategies to target them. Market segmentation is the technique used to enable a business to better target it products at the right customers. It is about identifying the specific needs and wants of customer groups and then using those insights into providing products and services which meet customer needs. Segments are usually measured in terms of sales value or volume. In the diagram…show more content…
Geo-cluster approach combines demographic data with geographic data to create a more accurate profile of specific [1] With respect to region, in rainy regions you can sell things like raincoats, umbrellas and gumboots. In hot regions you can sell summer wear. In cold regions you can sell warm clothes. A small business commodity store may target only customers from the local neighborhood, while a larger department store can target it 's marketing towards several neighborhoods in a larger city or area. In geographical segmentation, market is divided into different geographical units like: • Regions (by country, nation, state, neighborhood) • Population Density (Urban, suburban, rural) • City size (Size of area, population size and growth rate) • Climate (Regions having similar climate pattern) A company, either serving a few or all geographic segments, needs to put attention on variability of geographic needs and wants. After segmenting consumer market on geographic bases, companies localize their marketing efforts (product, advertising, promotion and sales efforts). Demographic Segmentation: In demographic segmentation, market is divided into small segments based on demographic variables like: • Age • Gender • Income • Occupation • Education • Social Class • Generation • Family size • Family life cycle • Home Ownership • Religion • Ethnic group/Race • Nationality Demographic factors are most
Open Document