Segmentation Analysis Literature Review

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Segmentation Analysis Literature Review

To match the needs of costumers, consumers and producers, not only in case of private people but of businesses or companies, target marketing is needed. To obtain the particular market firstly a marketer has to prepare a market research, after which he segments the market, and then targets a single segment or series of segments, and finally positions within the segment(s).
From these processes, I have chosen Segmentation Analysis as the topic of this essay, because it is a crucial element in the “formula” of marketing. In marketing plans mass media strategies are very popular, but it is dangerous to rely on them entirely. In addition, Swenson (1990) says, “Such strategies are no longer as
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Segmentation variables for consumer market are the following:

• Geographic
Region, country/county size, city size, density, climate
• Demographic
Age, gender, family size, family cycle, race, income, religion, occupation, education, nationality
• Geo-demographic
Type of dwelling, type of neighbourhood, singles living with parents, Dinks,
• Psychographic
Lifestyle, social class, generation next, personality, generation x, the millenials
• Behavioural
Purchase occasion, benefits sought, user status, usage rate, loyalty status, readiness state, product attitudes

Bases for segmenting business markets are the following:

• Demographic
Industry, company size, location
• Operating variables
Technology, user status, customer capabilities
• Purchasing approaches
Power structure, purchasing-function organization, nature of existing relationships, general purchase policies, purchasing criteria
• Situational factors
Urgency, specific application, size of order
• Personal characteristics
Attitudes toward risk, buyer-seller similarity, loyalty

Adapted from Thomas V. Bonoma and Benson P. Shapiro, Segmenting the Industrial Market (Lexington, MA: Lexington Books, 1983).

Developing the customer segment profile
All customer and business segments have to be examined in different aspects. Further segment descriptors are needed, such as their psychographics, mediagraphics, demographics,
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