Market Segmentation

5468 WordsJun 25, 201322 Pages
Segmentation Segmentation is essentially the identification of subsets of buyers within a market who share similar needs and who demonstrate similar buyer behavior. The world is made up from billions of buyers with their own sets of needs and behavior. Segmentation aims to match groups of purchasers with the same set of needs and buyer behavior. Such a group is known as a 'segment'. Think of you r market as an orange, with a series of connected but distinctive segments, each with their own profile. Of course you can segment by all sorts of variables. The diagram above depicts how segmentation information is often represented as a pie chart diagram - the segments are often named and/ or numbered in some way. Segmentation is a form of…show more content…
This briefing will explore each of these categories, hopefully bringing some measure of clarity to this space. Personalisation This covers all situations in which the end user is given the capability to customise or tailor the features provided, or how information is delivered to them. This covers simple functionality such as: • my links • my documents • choosing portal elements (’portlets’) Personalisation also includes richer functionality such as selecting news channels, or setting preferences in HR and travel systems. Personalisation (as defined here) is the most commonly implemented functionality, and is often the simplest to deploy. Doubts are raised, however, about the degree to which users make use of this functionality, and simple personalisation can struggle to demonstrate the benefits delivered to the organisation. Segmentation Instead of leaving it to end users to configure interfaces, segmentation involves the organisation more actively tailoring what is delivered to specific groups or roles. This may include: • targeting the delivery of individual documents • providing tailored ‘portals’ for specific groups • segmenting the whole site by audience There is a strong argument for benefits delivered by segmentation, particular as a way of overcoming the ‘information overload’ experienced by end users. The challenge is, and always will be, the considerable resources that need to be devoted to
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