Segmenting consumer markets geographic segmentation dividing a market into different geographical units such as nations, states, regions, counties, cities, or neighborhoods. Consider, for example, the nine nations of north americagarreau, 1982, latitudes and attitudes. As difficult as segmenting consumer markets is, it is much simpler and easier than segmenting industrial markets. Small businesses divide large markets into multiple, individual market segments, which group customers who share particular characteristics. They want a simple, singlepurpose remedy, which is safe and free from side. For example, an individual may buy one brand of beer if he or she were taking a sixpack to a party, and another if it was for a occasion with a friend. Bases for segmenting consumer markets geographic demographic age, gender, family size and life cycle, or income psychographic social class, lifestyle, or personality behavioural occasions, benefits sought, user status, usage rate, loyalty nations, states, regions or cities. A marketing plan is then developed that includes a situational analysis, market research, management of the marketing mix, and stp. The market structure is best viewed by the marketer by applying different segmentation variables both in the alone form as well as in the combined form. Demographic segmentations dividing the market into groups based on demographic variables such as age, sex, family size, family lifecycle, income, occupation, education, religion, race and nationality.
We know that the business market consists of four broad segments described as producers, resellers, institutions, and governments. American journal of business education june 2011 volume 4. Market segmentation is the activity of dividing a broad consumer or business market, normally consisting of existing and potential customers, into subgroups of consumers known as segments based on some type of shared characteristics in dividing or segmenting markets, researchers typically look for common characteristics such as shared needs, common interests, similar lifestyles or even. Understanding market segmentation and basis of segmenting a. The purpose of market segmentation is not just to sell products and services, but to inform research and development. It makes it easier for them to personalize their campaigns, focus on whats necessary, and to group similar consumers to target a specific. Segmentation variables are the criteria that a company uses to segment its market. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Bases for segmenting consumer markets segmentation variables. The overall goal of this series is to improve the marketing skills of food business managers and owners in new york state so that they. Market segmentation bases for segmenting business markets bases for segmenting business markets personal demographics. By segmenting the market and identifying the group of people most likely to. Segmenting a market facilitates the creation of marketing mixes a combination of product, price, place and promotion that respond to.
Market segmentation is a process, in which groups of buyers within a market are divided and profiled according to a range of variables, which determine the market characteristics and tendencies. Most companies use it to get the right population in using their products. Segmenting and targeting market free download as powerpoint presentation. There are five different ways to consider segmenting a market. How to use situational analysis and stp in your marketing. There can be more minor bases for segmenting industrial markets. Segmenting consumer and business markets bases for segmenting consumer marketsform segments by looking at descriptive characteristics. The related concepts of market segmentation, target marketing.
It makes it easier for them to personalize their campaigns, focus on whats necessary, and to group similar consumers to target a specific audience in a costeffective manner. Marketer will identify the customer need and want then only decide if it is. Many of the same bases used to segment consumer markets are also used to segment b2b markets. Customer type customer type segmentation is used when an n organization need to influence a certain consumer type. It deals with the issues that are already discussed by the researchers and also identifies the research gap for the further researches. Bases for segmenting industrial markets consumer markets and business markets use many of the same bases to segment their markets. The method by which whole markets are subdivided into different segments is referred to as the stp process. Products need to be tailored to a specific customer who makes up a target market. Segmenting markets based off purchase behaviors enables marketers to develop a more targeted approach. Learn vocabulary, terms, and more with flashcards, games, and other study tools. This article addresses the research question, what is the best method of consumer market segmentation.
Demographic segmentation is segmenting the market based on certain characteristics of the audience. Chapter 8 market segmentation, targeting, and positioning. Bases for segmenting consumer and business markets. Segmenting industrial product markets introduces additional bases, whilst precluding others. Geographic segmentation this is perhaps the most common form of market segmentation, wherein companies segment the market by attacking a restricted geographic area. Market segmentation free download as powerpoint presentation. The major segmentation variables for consumer markets are geographic, demographic, psychographic, and behavioral. What is the basics of market segmentation in service sector. For example, corporations may choose to market their brands in certain. However, just as with consumer markets, further segmentation can help b2b marketers to better refine their marketing mix. After completing this chapter, student should be able to understand. Pdf businesses may not be in a position to satisfy all of their customers, every time. Market segmentation is the activity of dividing a broad consumer or business market, normally consisting of existing and potential customers, into subgroups of consumers known as segments based on some type of shared characteristics.
Segmenting and targeting markets chapter 4 learning outcomes describe the characteristics of markets and market segments explain the importance of market segmentation discuss criteria for successful market segmentation describe the bases. Certain brands tend to be associated with certain occasions. Oct 21, 2015 the consumer market segmentation is not confined to a single method. For a focused marketing program, market segments should be based on certain clearcut variables, like geographic, demographic, psychographic. If an organization markets its products or services to a consumer or business, it should focus on the various types of segmentation. One market segment is totally distinct from the other. Just like for consumer markets, business or organizational markets should be segmented in order for the firm to effectively develop a successful marketing program. Arnett abstract market segmentation is one of the most widely accepted concepts in marketing. Segmenting consumer markets from principles of marketing.
Secondly we present consumer segmentation by demographic segmentation, behavioral segmentation and geographic segmentation. Business to consumer market segmentation 3 quizlet. The importance of market segmentation no market segmentation segmented by gender segmented by age segmentation process criteria for effective segmentation most important point bases for segmenting consumer markets bases for segmentation segmenting consumer markets segmenting consumer markets family life cycle psychographic segmentation. Kotler 2010 describes segmentation as the classification of consumers within a market that share related needs and establish related. Many of the same bases used to segment consumer markets are used to segment businesstobusiness b2b markets. Neha sharma presentation on market segmentationin foreign markets 2. Market segmentation template free powerpoint templates. Consumer and business markets cannot be segmented on the bases of same variables because of their inherent differences. Nov 07, 2019 market segmentation is one of the most efficient tools for marketers to cater to their target group. Market segmentation is a marketing concept which divides the complete market set up into smaller subsets comprising of consumers with a similar taste, demand and preference. All material 201220 and for educational purposes only.
Firstly we have the bases for segmenting consumer markets. Segmenting industrial market 10 bases your article library. As a marketer, you work to evaluate markets, to explore, to research segments, and to apply stp. Market segmentation free training guide for students and.
It should be clarified that theses bases are too general and interrelated. Jun 17, 2015 bases for segmentation segmentation of consumer based on factors like climate zone, continents country, region, state, district, and urbanrural area, constitutes geographic segmentation marketer, who operate globally, often segment the market segments the market by continentscountryregion in the first instance, and then go for segmentation. Market segmentation strategy, competitive advantage, and public policy. Psychographic segmentation takes into account the psychological aspects of consumer behavior by dividing markets according to lifestyle, personality traits, values, opinions. Segmenting and targeting markets chapter 4 learning outcomes describe the characteristics of markets and market segments explain the importance of market segmentation discuss criteria for successful market segmentation. Stp refers to the three activities that should be undertaken, usually sequentially, if segmentation is to be successful. Bases for segmentation segmentation of consumer based on factors like climate zone, continents country, region, state, district, and urbanrural area, constitutes geographic segmentation marketer, who operate globally, often segment the market segments the market by continentscountryregion in the first instance, and then go for segmentation. This topic discusses segmentation bases for consumer markets, there is a separate topic area relating to business market segmentation bases variables. Identify bases for dividing a market into smaller segments targeting evaluate segments and decide which to serve best positioning. Often the same industrial products have multiple applications. Market segmentation is a technique for using market research in order to learn all you can about your customers. By using any of these segmentation bases, either individually or in combination, an organization can construct market segments for evaluation to help them select appropriate target markets. However, there are generally fewer behavioralbased segments in b2b markets.
Bases of market segmentation introduction to marketing. The market segmentation means dividing the entire consumer market into the subgroups, such that the customers in each group share the common set of needs and wants and have more or less similar or related characteristics. Segmenting and targeting market market segmentation. The major segmentation variables for consumer markets are. So, considering demographic factors, while defining marketing strategy, is crucial. Geographic segmentation is one type of customer segmentation that is extremely easy to implement, as many companies often have their customers addresses from landing pages, or their credit cards. Besides, almost all bases used to segment consumer markets are equally applicable to segment industrial markets. Apr 23, 2011 segmenting business markets consumer and business marketers use many of the same variables to segment their markets. Segmenting consumer marketsbusiness markets, market targeting strategy, the positioning process. Grounding segmentation strategy in resourceadvantage theory shelby d. In marketing, segmenting, targeting and positioning stp is a broad framework that summarizes and simplifies the process of market segmentation.
Consumer markets are segmented based on consumer characteristics geographic. Segmenting consumer markets consumer markets can be divided in various ways and marketers have to try different segmentation variables, alone and in. Segmentation generally divides a population based on variables. The present paper highlights the definition and major basis of market segmentation. Launch a plan to use different types of market segmentation and sign up for a free trial of alexas advanced plan. Market segmentation market segmentation consumer behaviour.
A market segment is a small unit within a large market comprising of like minded individuals. There are number of variables involved in consumer market segmentation, alone and in combination. Segmenting and targeting market market segmentation marketing. Psychographic segmentation takes into account the psychological aspects of consumer behavior by dividing markets according to lifestyle, personality traits, values, opinions, and interests of consumers. Geographic segmentation calls for dividing the market into different geographical units such as nations, states, regions, counties, cities, or neighborhoodthe company can. Segmenting consumer markets from principles of marketing by. Is the pet rock a perfect birthday gift for everyone. The criteria that a company chooses should be good predictors of differences in customer needs and the way they buy. Segmenting consumer markets by ethnicity, age, income and household buying patterns. Business buyers can be segmented geographically, demographically or behaviorally. Demographic segmentation is one of the simplest and most widest type of market segmentation used.
The process of market segmentation, including its benefits and conditions for use. Some of the major bases for market segmentation are as follows. Geographic market segmenting takes into account what country, region, city or area a potential consumer resides in. Instead of offering a services or products to everyone, organizations tailor each product and marketing tactic to a specific target markets. Presentation on market segmentation in foreign markets. In response to this need, we offer this marketing modules series of eight modules which constitute a comprehensive training course in marketing management. It focuses on the definition, basis of market segmentation and issues related to. Market segmentation helps your brand get clear about your audience and goals.
Lamb and carl mcdaniel 2003, the first step in segmenting markets is to select a market or product category for study. Pdf segmentation of markets based on customer service. Market segmentation strategy, competitive advantage, and. Bases for segmenting organizationalindustrial markets in. A strategy of market segmentation attempts to regain some of the benefits of the closer. Although there has been a considerable debate on market segmentation over five decades. This is evident from observation and from the proliferation of popular books describing the heterogeneity of local and global markets. The market segmentation template in powerpoint format includes four slides. Types of market segmentation 1 demographic segmentation. Rate of growth, inflation, savings, exchange rates. Yet business markets also use some additional variables, such as customer operating variables, purchasing approaches, situational factors, and personal. Bases for segmenting consumer markets geographic demographic age, gender, family size.
You can get to know your audience, see how to better serve and reach them, and find new markets to grow into. In cryptographic segmentation, segments are defined on the basis of social class, bases for consumer market segmentation by messes interests opinions personality self image activities values attitudes. The basic approach to segmentation, targeting and positioning does not differ greatly between consumer and organizational markets. The segmentation basesvariables for business markets vary a little in terminology, but are quite similar in concept and application to the process of segmenting consumer markets. Business buyers segment geographically or by benefits sought, user status, usage rate, loyalty status, readiness state and attitudes. These are main bases for segmenting industrial markets.
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