Friday, July 26, 2013

What Is A Market Segmentation Strategy?

By Michael Obrien


The process of dividing market into groups is known as market segmentation strategy. This procedure is carried out due to variances in consumer needs and wants. The needs and wants are derived from the service product. The division can be based on basis of economic wealth, culture and also individual character. In other academic publications, the idea is referred to the process of separations.

The separation and part is all about particular segments with the related needs, demand characteristics and requirements. Market segmentation strategy therefore is a key area in promotions. The concept is significant because it aids in accomplishing some important purpose. It helps an organization attain viable benefit.

The firm may develop specific marketing mixes for each targeted segment.

This idea is majorly the groundwork upon which other promotion actions are based on. Management dedication is also needed for the process to be successful.

The concept is therefore the foundation on which all other marketing actions can be based. For the process to be successful the management commitment is core. The management should be committed to customer-oriented planning, research and finally implementation and control. Through the division, companies are able to create product differentiation strategies to target them.

For the market segmentation to be successful, it must meet the following criteria. The stability of the segment, possibility of generating revenues, capability of measurement, ability of getting clients through advertisement and finally allocation control.

Have the knowledge on needs of customer and finding the way to satisfy the needs are some of important considerations. This is important because it aims at creating a competitive advantage through producing some brands.

The idea can also be obtained through carrying out a research. Because satisfaction of the consumers need is difficult, an explained method of promotion is important in generating the sense of economic. This idea is also important in introducing a wide understanding on the variances on the consumers.

The concept also helps in the understanding of various segments and several news. In any industry, the division is based on some variables. The variables used for the market segmentation are; geographical differences, behavioral and demographic differences. A geographical difference is done by dividing consumers into different environmental locations.

A geographical diversity plays a significant role. For instance, promoting commodities in winter regions is most likely not to work for summer wear. Population distribution is concerned with the study of possible consumers. When selling goods and services, there are factors that one should put into considerations. They include: culture, family, job occupation, gender and education.

This will play an important role in determining as to whether a product is designed for a specific customer or not. Behavioral division is based on the needs of the customer and succeeding reaction to those needs or towards the purchase of intended product and service.

A behavioral difference is carried out through a study based on some variable such as loyalty to some brand as well as the expenditure. As a core concept in management, market segmentation strategy should be given a priority.




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