MARKET SEGMENTATION

MARKET SEGMENTATION- BASES / IMPORTANCE

DEFINITION:

Market segmentation as the word contains segmentation means the managers of the company
divide the consumers or their market in many segments or in many parts such as there will be
some very potential customers, some will be both loyal as well as the potential customer.

 

The other will be divided on their geographical area some on their lifestyle, taste, needs, other may
be a divided business to business customers some will be divided on the basis of business to customers
this segmentation of the consumer will help the organization to get the most potential and targeting customer,
on whom the firm should pay more attention and fulfill those customers needs should be the target of the firm.

Market segmentation

does not only help in finding out the most profitable and potential customer
it also helps the business to know about other customers on whom the organization should pay attention
in order to increase their profit.

 

Market segmentation believes that every segment need are different and we should use
different approaches, to fulfill their needs such as every segment needs different prices,
offers, distribution system, different promotion of the brand

 

Market segmentation helps in identifying and targeting of goods and services in not only
one segment but in many more segments.

 

In other words, we can say that market segmentation is the process of dividing a large number of the market
into same needs and demands customers in order to achieve more and more advantage and profit by the firm.

 

The firm should, first of all, identify the customers with the demand of their industrial product,
the second step should be that the industry should target on fulfilling the demand of those customers
and the most important third step should be that the firm should target on the variable offers and prices
which industry should give to the customers in order to achieve a big market share and more and more profit.

 

BASES OF MARKET SEGMENTATION:

 

  1. GEOGRAPHIC SEGMENTATION:

The first step of any international market should be the geographical segmentation of the consumer
which can be done on the basis of country, climate, neighborhood, region, population etc

 

For example
we can say that a product which a company launches worldwide is having its different prices in different country even different prices in different postal codes to their different offers also this is so because every country every region or even every other climatic condition needs, power of investment, nature of consumer is different so there should be different prices and offers so that firm can achieve its profit.

 

 

  1. DEMOGRAPHIC SEGMENTATION:

The market should be differentiated on the basis of age, gender, occupation, marital status,
lifestyle, size of the family, education and even religion of the consumer.

 

According to this differentiation of the consumer done by the firm helps in manufacturing the goods
which can fulfill the demand of different type of customers according to age and gender the industry
will try to make those products only  marital status can be differentiated as a newly married couple,
couple with no children, and couples with children because all of these will be having different needs in occupation.

the market can be divided according to the job and income of the family some can be businessmen,
clerks, managers, unemployed, students etc according to their occupation the demographic segmentation
is made by the firm.

 

  1. PSYCHOGRAPHIC SEGMENTATION:

This segmentation is measured when the firm try to understand the psychology of the customers such as what is their opinion about the product what is their lifestyle and how do they spend their free time what is the interest of the customer which external or internal thing effect the customer mostly

This segmentation is all about learning the psychology of the customer.

 

  1. Behavioral SEGMENTATION:

This segmentation divides the customers according to the study of their behavior which can vary time to time such as it can vary in special occasions such as Diwali in this occasion the customer  try to buy the product which he hasn’t tried first

His behavior can be changed according to the change in his status also for example if an employee gets promoted he will try to update his status as well he will try to buy that product which he was not buying earlier.

The benefit can also be the main reason for the change in the behavior of the customer if he is finding benefit in the product he will buy the product the benefit can be of health, price or some beneficial offer.

 

  1. GENERATION SEGMENTATION:

    in this segmentation the industry try to differentiate according to the generation such as the people born in 1990 to 2000 other can be from 2000 to 2018 because there will be a generation gap the product which the 90s kids loved to use at that time product which was in trend at that time it is not necessary that they will be trending at the same level as 20s kids so the industry should improve their product in according to be in the market.

 

  1. ONLINE SEGMENTATION:

Nowadays online shopping by the customer is in trend so the segmentation is somewhat different the industry should keep an eye that how much time a customer is spending on one site, which type of product he is searching what does he need

The customer wants good and fast service,  no fake deals, no popup windows or chatting and most importantly the quality of the product in a reasonable price if an industry can provide all this the customer will be happy and satisfied.

 

IMPORTANCE OF THE MARKET SEGMENTATION:

 

 

 

The importance of market segmentation or dividing the market is beneficial to both the customers as well as the industry as we segment the market we know more and more about our customers their needs their demand nature what type of product can satisfy the customer most ,it also helps in knowing about each groups lifestyle ,their different approach to the product and difference In their choices

 

The importance of segmenting the market is that you can find many more things about your customers who help in making more and more advantage and making more share as well as more profit in the market.

 

FOR CUSTOMERS:

 

A MORE CHOICE OF GOODS AND SERVICES:

For the customer, the segmentation of the market is important because it helps the customer to find more and more choices of the product at variable prices and offers which benefit the customer most.

 

B GOODS AND SERVICES CAN MATCH THE DEMAND:

This differentiation can help the customer to find the most nearly product of their demand and they can be satisfied with the product more, it helps in fulfilling the demand of the customer.

 

FOR INDUSTRY:

 

 A BETTER MARKET PLANNING:

The firm can make better marketing planning or strategies because as a result of this study the firm will target more on their potential customer and the firm will also know about other consumers also on whom they had to target.

 

B SALES:

It helps in keeping a close eye on the sales of the goods which should be high and to low the cost of production which will automatically result in the profit to the firm.

 

C SMALLER SEGMENT:

This helps in focusing on the smaller segment of the customer which is ignored if there is no segmentation of the market this helps the firm to get deeper in the market and will help in more and more profit.

 

D BUDGET:

This segmentation of the market helps the firm to maintain their budget that what amount of cost should they spent on the production of goods for the targeted customers and non-targeted customers which will help in lowering the cost and will not allow any wastage of cost, time and energy of the employee.

 

Examples of market segmentation

 Market segmentation is a usual practice among the industries, let’s understand them by the following illustrations.

  • Marketers waste their time and also makes fun of themselves if they do not segment the beauty product marketing.

 

  • Company with the product related to nutrition’s food markets their product to the older people whereas the fast food products target the geographical area teens.

 

 

Market segmentation helps the marketers to target their proper audience who is directly related to the product of the company which eventually increase the sale of the products and the profit of the company

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