Market segmentation - the process of separation of the market (consumers) into groups according to certain criteria.The main objective of this action is to study the reaction of a group on a particular product, as well as the selection of the target (main) market segment.Segmentation of the market occupies a dominant position in any market research customer base.
What is market segmentation
Any company working for its clients.Naturally, they all differ somehow apart.Market segmentation - the process of selection of certain parameters that distinguish one group from another.One customer may differ from another place of residence, habits, social status, religious beliefs, and even approach to life.Taking into account all these differences, the company can produce different products for each segment.Each group is of course different from each other.One of the differences is their number.Many companies are focusing only on the most numerous group.Although there are many companies, which focus on one narrow segment.This allows them to avoid the big competition and have regular customers.Segmentation allows you to explore the better of their customers, and to identify which groups do not use the services of a particular company.Thus, the segmentation of the market - is an integral part in the activities of any company.This phenomenon is based on certain principles.
principles of market segmentation
segments may vary according to several criteria:
- geographically.Consumers can be divided into urban and rural population, as well as in the community - by regions, cities and even countries.
- demographically.The most common is the separation of potential customers by age, income level and marital status.Among other: religion and occupation.
- In psychographic basis.The division is based on consumers' specific characteristics of the individual.There are various methods for determining the psychographic type human, which occurs segmentation.Example: a person can be attributed to one of two groups - to psihotsentrikam or allotsentrikam.
Other signs can be distinguished by their customers towards the product, the style of consumption and personal characteristics.
How to allocate segments
The choice of a product can affect not just one age consumers, but also, for example, income level or geographic location.Therefore, the more criteria will be highlighted in the study of consumers, the clearer will be visible to the whole situation on the market.At the same time a large number of signs greatly complicates the situation.Simply put, the more segments, the fewer users per group.How to allocate segments and for some parameters depends on the individual company.
Thus, market segmentation - a process that should take place in a specific pattern, depending on the goals of the enterprise.
