Answered: List the steps involved in segmenting…

MARKETING 2018

19th Edition

ISBN:9780357033753

Author:Pride

Publisher:Pride

Chapter6: Target Markets: Segmentation And Evaluation

Section: Chapter Questions

Problem 3SC

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List the steps involved in segmenting markets?

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Step 1

Market segmentation, selection of appropriate target markets, and appropriate and competitive positioning are critical to success in most markets. Marketing strategy starts with segmentation, so learning the stages of market segmentation is important for any business.

Step 2

Following are the steps in segmenting markets:

Define market: The first and most important step is to identify the target market. Marketers need to be very clear about why everyone should be included in a common category.
Create market segments: Now that one has clearly defined the product or market, one needs to determine what kind of consumer the overall market is. To do this, one needs to review the list of segmentation bases and select two or three variables that they think will affect book users' purchasing behavior.
Evaluate segments for functionality: Now that some market segments have been progressed, they need to be evaluated to ensure that they are useful and sensible. To do this, the segments against a checklist of components need to be quickly evaluated.
Create segment profiles: One may need to describe the segments. The following is a checklist of factors that one might consider. For some such items, one may not really know - if so, either make an analytical hypothesis or do not include elements in the segment profile.
Evaluate the attractiveness of each segment: If one wants to select a target market from the list of market segments, one has to use some kind of objective assessment.
Select the target market: Using the evaluation information currently generated by one person, one can select the most suitable target market for the organization. There are many factors to consider but one should at least take into account. They are the strategy of the organization, the attractiveness of the segment, the competitive hostility of the segment, and the ability of the organization to compete successfully.

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