What is market segmentation

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First you need to define the concept of the word segment - a group of customers with similar needs or specific wishes.Dividing the market into segments allows companies and organizations to focus only on the perspective and profitable market segments cutting others.

Market segmentation can be performed both in the industrial and consumer market.

consider market segmentation consumer type.This market can be divided in the process of segmentation according to several criteria.So the criteria for market segmentation are: geographic, psychographic, demographic, behavioral.

consider each criterion separately.

Market segmentation by geographical criterion is to divide the market into various geographic regions (units).For example, for the Russian market, the following units: population density, the size of the city, region, region, district.Analyzing a segmentation of the market where the company will be able to define its marketing efforts are most effective.In Russia, the market is divided into regions such units: Siberia and the Urals, in Moscow and Leningrad regions, districts and Kolomna Resurrection, size cities of less than 5 thousand inhabitants, 5-20 thousand, etc.

demographic criterion of market segmentation is to divide the market on grounds such as age group, gender, family size, life cycles, and occupation, nationality, education, religion, etc.This segmentation is usually performed by companies at the stage of research to marketing.It is this segmentation allows a more accurate form of goods demand in certain segments of the population.

regards segmentation of behavioral factors that are taken into account in the criteria for the combined group of customers based on their qualifications, knowledge of both the users and their reactions to the provided (promoted) goods.The variables of this segmentation is the intensity of use (high, medium, low), the willingness to purchase a product (know about the product or do not know about the product) status as a user of the product (the user of the product categories s not a user of the product), the utility purchases (prestigethe need), the degree of loyalty to the product (no or mean absolute and strong).

now that with regards to psychographic segmentation criteria.This type of segmentation is done with a scientific approach based on a science as "psihorafika."This science deals with such matters as the classification of lifestyle consumers.Because of this, you can research-based "psihografiki" divide consumers into certain groups according to their way of life and especially the character and personality.

There is market segmentation on operational grounds.It is characterized by such variables - technology, user status, the volume of the offered goods or services.

As well as the segmentation of so-called procurement basis with variable - the organization of supply (centralized, decentralized) power structure (the prerogative of the department is a commodity - financial, industrial, etc.), the structure of the relationship, policies and types of purchases (contract, lease, etc.)

It should be noted that the principles of segmentation of consumer markets is not always possible to determine the selection of goods for a certain range consumers.They only helps marketers identify opportunities for interested category of buyers, but otherwise the selection and definition of the category for each product group is the art of marketing.It depends on its ability to correctly group segmentation he chose for his goods or not.