Market segmentation (SR) is the division of the target audience (TA) into groups. Each of the groups includes consumers with the same characteristics and needs. This is essential when developing a marketing strategy. Allows you to see the needs of all consumer groups and satisfy them.

What does market segmentation mean?

The company in the production and sale of products can focus both on all segments and on individual groups of consumers. Segmentation allows an organization to determine its place in the market. Its main goal is to increase sales of products, targeting various consumers in the development of goods.

Segmentation is divided into two stages:

1. macro segmentation. At this stage, the market in which the product will be sold is determined.
2. Microsegmentation. Within a certain market segments of consumers are determined. That is, a search for small market segments is carried out to form an effective marketing strategy.

Working with small groups of consumers allows you to find more subtle marketing tools.

Market Segmentation Goals

Market segmentation is a tool that should not be ignored. Its efficiency is very high. Consider the goals of market segmentation:

• Product development based on the needs of the target audience.
• Satisfying the needs of the consumer.
• Formation of competitive advantages.
• Orientation of the marketing strategy to the actual consumer.
• Formation of scientific and technical base on the basis of existing requests.
• Transition to a narrow segment with low competition.
• Orientation to the consumer.

Market segmentation is a tool that is suitable for both small and large companies.

Stages of segmentation

Segmentation accuracy is critical. This affects the effectiveness of the marketing strategy. If consumer groups are not defined correctly, it will be impossible to find an adequate method to increase sales. Consider the stages of market segmentation:

1. Research of the company's market resources.
2. Formation of segmentation criteria.
3. Segmentation.
4. Market research.
5. Formation of a strategy for the company's behavior in market conditions.
6. Selection of specific market segments.
7. Product positioning.
8. Formation of a marketing strategy.
9. Organization of the company's work in a new segment.

At the stage of preliminary segmentation, the maximum number of suitable market segments is studied. At the stage of final segmentation, a limited number of segments are explored in which it is planned to continue work.

Selecting a specific segment

As a rule, the company specializes in 1-2 segments. More segments are not recommended. This will reduce the targeting of sales. Once a segment is selected, there are 5 possible actions:

1. Focus on one segment.
2. Work on satisfaction of one need, characteristic for all groups of consumers.
3. Work on meeting all needs within the same group.
4. Concentration on several segments.
5. Meeting the needs of the entire market.

ATTENTION! Most effective method marketing - focus on one group.

Market Segmentation Criteria

Segmentation criteria are indicators that allow you to determine the reasonableness of choosing a particular group. They can help inform your marketing strategy. Consider the main criteria, as well as their characteristics:

• Consumer feedback differentiation. Representatives of each group should respond to the proposed product in a similar way.
• Adequacy. The volume of products that can be sold within a given time period is determined. At the same time, such indicators as the number of consumers and the area of ​​the selected segment are taken into account.
• Availability. Resources are determined to expand the area of ​​product sales.
• measurability. Availability of resources to research segment size.
• Materiality. Each group is analyzed to see if it can be considered as a segment.
• Compatibility. The degree of compatibility of the segment with the market captured by competitors is checked.
• Profitability. The profitability of working with the selected group is determined.
• Competition. The level of competition is analyzed.

You can select all or several criteria for analysis.

Signs of market segmentation

There are the following signs of segmentation:

• Geographical. The market is divided geographically. That is, the company chooses in which geographical area the products will be sold. This takes into account the climate of this area, population density, characteristics of consumers. For example, it does not make sense to count on a large demand if warm jackets are sold in areas with a very warm climate.
• Demographic. Representatives of the target audience are divided into groups according to the following criteria: gender, age, marital status, income level, education, and so on.
• psychographic. The group is classified on the basis of the following features: lifestyle, status, personality traits. Segmentation based on personality types is possible. For example, consumers are divided into introverts and extroverts. Depending on the type of personality, the optimal way of influencing the consumer is selected.
• Consumer motives. At this stage, consumer preferences are determined, prioritization when making a purchase. It is desirable to define the value system of the target audience.
• Behavioral. The actual behavior of the buyer is analyzed. For example, the volumes of purchases that are made by the consumer are determined. Loyalty scores are calculated.

The listed features make it possible to divide the existing target audience into groups.

Development strategies taking into account market segmentation

Based on market segmentation, a further development strategy is determined. You can choose one of the following strategies:

• Unified. In this case, segmentation practically does not play a role. The advertising strategy will be homogeneous. When developing and implementing a product, they are guided by the most common features consumer. This strategy is relevant for those cases where the product does not have distinctive features.
• Differentiated. A specific product is selected for each group of consumers. Distinctive features this method is a higher probability of making a purchase, a higher value of the goods.
• concentrated. Several groups of consumers are selected, and all the efforts of the company are concentrated on them. The differences of this strategy: increased market potential, prestige of products, provision increased profitability production. The strategy is suitable for highly specialized industries.
• Atomization. CA is divided into the smallest units. The division limit is an individual consumer. This strategy makes sense when selling expensive products.

The choice of strategy depends on the characteristics of the company and the product itself.

Market Segmentation Example

The company is engaged in the production of protein shakes. Segmentation is carried out in order to increase sales. The research method determines the groups that purchase products. It:

• Women who want to lose weight
• Women trying to gain muscle mass.
• professional bodybuilders.

The company is quite small, and therefore it is subject to competition. To reduce competition, a decision is made to select one group. AT this case this group will be professional bodybuilders. The choice is due to the fact that this group needs high-quality sports nutrition, but few manufacturers are focused specifically on professional athletes. Products are tailored to the needs of a particular group.

No market is homogeneous. Of course, one might think that all consumers are the same, but even the most superficial reflection shows that this is not the case. Some people love sweets, others are indifferent to it; some people tend to buy a car, others tend to refuse it; Some people have children, some people don't. There are many more examples that would show in what situations consumers behave differently, but perhaps enough of those that have been given.

Studying the question of whether a product is needed on the market or not, one must begin with an understanding of the essence of the process, i.e., with whether this product is needed by an individual consumer? This type of research establishes the habits, tastes, and reactions of people living within a given market. It helps answer questions about these people's behavior as buyers: who? what? where? when? as? why? How many?

Very well, the essence of segmentation, and marketing research, was outlined by R. Kipling in one of his poems:

Studying the consumer helps the manager responsible for promoting products to the market to establish:

• 1) who are the people who make up its market;
• 2) what they want to buy;
• 3) what they need and what they use;
• 4) where they buy the products they need;
• 5) how many products are purchased;
• 6) when they buy;
• 7) how often they buy;
• 8) how they use the products they buy.

To take into account this "stratification" in the market, marketers resort to such an operation as segmentation. Market segmentation- this is the division of a particular market into parts (segments) or groups of consumers that have a steady demand for a particular product, the implementation of which depends on how each of these parts reacts to the product offer, taking into account the activity of marketing promotion tools (advertising, sales forms and etc.).

There are several basic types of segmentation. Traditionally in marketing there are:

• 1) macrosegmentation - dividing the market into segments by regions, countries, levels of their development, etc.;
• 2) microsegmentation - more fractional than macrosegmentation, the division of the market depending on private parameters (characteristics of consumers by income level, age, marital status, etc.).

Market segmentation involves identifying groups that differ from each other in their behavior. At the same time, the market segment is a fairly large part of it; in fact, an enterprise can focus on an even smaller group of consumers. In this case, the following terms are used.

• 1. market niche- a subgroup of consumers within a segment. Although some points make it possible to identify these people with other consumers belonging to the same segment, they are still characterized by some additional features.
• 2. An even narrower concept - local group. Focusing on a local group, the enterprise seeks to take into account the differences in interests and needs that are characteristic of the inhabitants of a particular locality, city, village, district, or even visitors to a particular store. The concept of “local group” is especially important when an enterprise cannot satisfy the needs of the market for a particular product as a whole, and therefore it is natural to decide to limit its activities to a specific territory.
• 3. Individual marketing involves the desire to take into account the interests of one specific buyer. In fact, individual marketing takes place in the activity of a tailor who sews clothes to order. In this case, the tailor seeks to take into account as many features of his customer as possible: height, volume, his aesthetic preferences, intentions regarding the use of the clothes that will be sewn, etc.

An individual consumer is, by and large, the limit of market segmentation, since its further division is simply impossible. There is an opinion that modern production and associated with the desire to develop it technical progress tend to this limit.

Some businesses are forced to opt for individual marketing due to the fact that their markets include only a few or even one consumer. In particular, aircraft manufacturers are forced to choose such a strategy, since a very small number of organizations and people purchase their products. In the conditions of mass production, one regularity should be taken into account, which operates with a single exception: the narrower the group the company focuses on, the more expensive the product turns out to be.

Naturally, this generally does not apply to a small enterprise that has limited production volumes due to limited capacities and resources. However, on a larger scale, attempts to take into account private interests lead to a noticeable increase in production costs. For example, in order to bake a thousand identical loaves of bread, certain costs are needed; however, in this case, production will run continuously, since all rolls are the same. When a manufacturer seeks to take into account the interests of customers (for example, he starts baking three types of bread rolls that differ in size), it becomes necessary to reconfigure the equipment, use various forms for baking, etc. As a result, more demands are placed on workers, assembly line production must be rebuilt at least twice.

It makes sense to distinguish between preliminary and final segmentation. When planning to enter the market with a new product, experts proceed from some assumptions about why consumers belonging to one or another group will buy this particular product. Such assumptions are in the nature of hypotheses - provisions that must be tested in the process of marketing research. These provisions are called preliminary segmentation.

Unlike pre-segmentation, final segmentation implies already accurate knowledge of consumer preferences and more accurate assumptions about the success or failure of the project, based on data from marketing research. It is advisable to distinguish between preliminary and final segmentation because our assumptions and assumptions do not always correspond to reality, and therefore they always need to be verified.

In marketing practice, it is customary to distinguish between segmentation of the consumer market and segmentation of the market of organized consumers.

1. Segmentation of the end consumer market is aimed at identifying factors that are significant from the point of view of ordinary consumers - individuals and families. Inclusion in this series of families is due to the fact that a person's needs are not determined exclusively individually, belonging to a family imposes important restrictions on his behavior. In particular, a person who does not have a family can spend money solely on personal needs and entertainment. A person who has a family acquires a number of duties, in particular, the duty to feed, clothe, and teach his children.

Segmentation of the end consumer market. It is carried out on a number of grounds, which are presented in Table. 6. There are quite a lot of these signs, so usually marketers choose only a few as the basis, those that are the most significant, there cannot be any single basis for all cases. In practice, marketers have to determine the most important criteria based on the specific situation, i.e., from the characteristics of the product and the characteristics of consumers who may be interested in it.

Reasons for market segmentation

The basis for splitting	Split example
Demographic characteristics
	under 10 years old, 11-15 years old, 16-20 years old, 21-30 years old, 31-40 years old, etc.
	male/female
seed position	married (married), single, divorced (widower)
income level	up to 1000 rubles, from 1000 to 3000 rubles, from 3000 to 5000 rubles, from 5000 to 7000 rubles.
Education	incomplete secondary, complete secondary, secondary specialized, incomplete higher, complete higher
Occupation	worker, employee, peasant, creative worker
Religion	christian, muslim, jew, buddhist, non-believer
Nationality	Russian, Ukrainian, Belarusian, Tatar, Armenian, Jew, etc.
Family size	1 person, 2 people, 3 people, etc.
Psychological and social signs
Values	Conservative (traditionalist), radical
Political preferences	Democrat, socialist, communist
Class membership	Lower class, middle class, upper class
Behavior
Peculiarities consumption	Permanent use, occasional use, potential (possible) use, does not use
The degree of commitment to the product	Absolute, average, zero
Basic requirements for the product	High quality, low price, prestige, etc.
Attitude towards the product	positive, negative
The basis for splitting	Split example

Geographic feature
	Russia, Ukraine, Belarus, Poland, Turkey, China
	Central federal district, Southern Federal District, etc. Moscow, Moscow Region, St. Petersburg, Leningrad region, Voronezh, region, Rostov region, etc.
Locality (by administrative status)	Capital, regional center(capital of the republic), regional center
City (by number of inhabitants)	Up to 10,000 inhabitants 10,001 to 50,000 inhabitants 50,001 to 100,000 inhabitants
District of the city	City center, outskirts of the city
	Cold, warm, etc.

How more signs uses a marketer to segment the market, the more segments are obtained. This has both advantages and disadvantages. The main advantage is that with an increase in the number of parameters and segments, the accuracy of predictions increases. However, this increases the amount of information that has to be dealt with and is therefore more difficult to analyze. In addition, excessive detail makes it difficult to choose enough large segment which would be in the interests of the enterprise.

Therefore, it is absolutely not necessary to segment the market according to all possible criteria, it is necessary to select the most significant of them. The main task of the marketer in this case is to get exactly the information that is most important. And in many cases, it is enough to take into account only three or four criteria.

2. The market of organized consumers is the market of a wide variety of companies, firms and other organizations. In addition, the same market includes numerous trade organizations that mediate links between the manufacturer and end consumers. Its differences from the end-user market are very significant, first of all, they relate to the goods that are purchased in this market, as well as the volume of purchases. There are also differences in segmentation.

Successful segmentation of the market can be considered the goal of any enterprise. In the conditions of the modern economy, there are too few monopoly markets; in the vast majority of cases, competition is developed to one degree or another in the markets. The fact is that consumers who buy a certain product of a particular brand, as a whole, form a market segment identified on a special basis. It is quite natural that an enterprise should strive to ensure that its market segment is more extensive.

Obviously, market segmentation and the search for an undeveloped segment should be resorted to only if the market as a whole has already been at least partially mastered, mastered to such an extent that there is no shortage on it. In a situation of scarcity, consumers are ready to buy any product, and it may have qualities that do not fully satisfy consumers. Then mass marketing is much more effective.

In this case, the indicators that are most important are not the characteristics of individual consumers, but complex organizations that purchase goods or services to satisfy their own needs. It is clear that the needs of organizations are qualitatively different from the needs of people.

The most important parameters for the market of organized consumers are the following parameters:

• 1) the industry, the field of activity of the company (usually in this case they say three areas: technology, marketing and the financial sector);
• 2) the size of the company: distinguish between large, medium and small companies;
• 4) geographical region;
• 5) technologies used by the company;
• 6) the volume of goods and services that the consumer needs: it can be large and small;
• 7) features of the size and frequency of orders: non-periodic small, non-periodic large, periodic large, periodic small;
• 8) the qualities and characteristics of goods and services necessary for the company: price, quality, service, the possibility of systematic purchases, the obligation (optional) of urgent deliveries;
• 9) features of the use of goods and services at the moment: they can be used widely, limitedly or not used at all; respectively, active users of the product, inactive users of the product and potential (possible) users are distinguished.

There are two grounds for market segmentation, which are directly related to the product and its qualities.

• 1) the benefit that the buyer is looking for. The same product can be purchased by different consumers different reasons. For some, the price is important, for others - the fact that other people buy this product, for the third, quality is most important, for the fourth - some special quality associated with the specifics of the product. So, according to research conducted by marketer R. Haley, there are four main consumer groups of toothpaste buyers: for the first group, cost savings is in the first place, for the second - the therapeutic effect, for the third - the ability of toothpaste to whiten teeth, for the fourth - taste;
• 2) commitment to the product (brand). A buyer who is committed to some product, or rather, to the brand of the product, is ready to purchase it at a higher price; if in one store this brand is not available, he is usually ready to go to another.

Naturally, only approximate bases of division are given here: in fact, they can be different, more or less detailed, fractional. When determining the grounds for division, it is necessary to proceed, first of all, from what signs will be really significant, and to avoid excessively fractional division. The first requirement is clear in itself: improper market segmentation will lead to the fact that the marketing strategy of the enterprise will be ineffective, all efforts will be in vain.

As for the second requirement, it is due to the fact that too much fragmentation of the market as a result of research provides too much diverse information that is difficult to streamline and generalize. Usually, when starting segmentation, specialists have some assumptions about what they are interested in, and have information about what resources are available to the enterprise. Therefore, whenever possible, market segmentation should be aimed at ensuring that it is commensurate with the real needs of the enterprise.

One important recommendation should be made here. When segmenting the market, it is far from always necessary to rely on standard, already existing grounds. As noted researcher Madjaro pointed out, a marketer who is able to discover a new basis for market segmentation can avoid intense competition. And this means that the most profitable for the enterprise is such a basis for segmentation, which is not used by other enterprises operating in the same market.

Suppose that there is a book publishing house that focuses on producing cheap products that are accessible to a wide range of readers. A natural, but wrong decision for another book publishing house would be to focus on the production of expensive book products (for example, gift books). However, in reality, the second publisher will gain much more if it starts publishing books for children, for example, and does not play by the rules that a competitor ultimately sets.

We should not forget about the search for “market windows”. This is the name of the market segment, which for some reason remained undeveloped by other manufacturers of the same type of product. As a rule, "market windows" arise when a new product appears that is simply not able to satisfy the needs of a certain part of the population.

For example, copying equipment was originally created by analogy with printing equipment, and therefore there were only expensive and large equipment on the market. Several Japanese firms took advantage of this by producing inexpensive and less powerful equipment that could be used by small firms and individual consumers. A similar situation was observed in the market for shampoos and pet food. The thing is that traditionally they were washed with the same things that people themselves washed, and fed with ordinary food.

Market segmentation is a universal way of dividing any industry into homogeneous groups. This process is applied not only to consumers to determine the target audience. Segmentation helps to analyze the assortment of all manufacturers on the market, build a map of competitive groups and determine the boundaries of price segments. In this article, we will take a closer look at seven universal ways to segment a product market.

Product segmentation of the market helps to look at any industry from a strategic angle. Combining all market products into homogeneous groups helps to conduct a qualitative analysis of the market situation, identify the most popular product groups in the industry, assess the capacity of each segment and make a forecast of its growth dynamics, identify key market trends and, as a result, develop a working long-term assortment strategy.

7 Basic Segment Search Methods

In world practice, there are 7 main methods for segmenting the assortment on the market: by product groups, by basic functions / characteristics of the product, by volume and size of the product, by type of product packaging, by manufacturer, by price segments, as well as a combination of several parameters.

The first principle - product groups

Product groups are large categories of goods, united by purpose and principle of use. Product groups are a more detailed view of the industry as a whole. Product groups in which the company's product is not represented are in fact good sources of business growth. Entering new product groups, as a rule, does not lead to a decrease in sales of sales of the current assortment, as it covers completely new needs of the buyer.

For example, commodity groups of the market household appliances are: washing machines, refrigerators, kettles, TVs, etc.

The second principle - according to the purpose of the goods

This type of segmentation is the most common and widely used. At the core this method market segmentation by product groups are the key functions and characteristics of products that the consumer takes into account when buying. The more detailed the segmentation by the main functions of the goods, the easier it is to find free market niches for the development of the company.

Here is an example of segmenting the chocolate market:

• by color and composition: dark, milky, white
• by consistency: airy and not airy
• in appearance: bar, bar, candy, other shapes
• according to tastes: pure chocolate, with nuts, with fruits, etc.

The third principle - by price segments

This type of market segmentation is important for understanding the established price boundaries of the market. Over time, clear boundaries of price segments are established on the market, which tell the buyer about the quality of the product, its complexity, uniqueness and premium. Based on the level of their income, expectations from the effectiveness of the product or the desire to confirm their social status the buyer chooses a product from one of the established price segments. If a customer wants a basic product, they are more likely to buy the product at the lowest price. If the quality of the product, the guaranteed result and status are important to him, he is more likely to pay attention to more expensive products.

The most common example of price segmentation: low-price segment or economy segment, mid-price segment, high-price segment, premium segment.

Marketing. Short course Popova Galina Valentinovna

6.1. The concept of market segmentation (segmentation)

A market segment is made up of consumers who respond in the same way to the same set of marketing incentives. Markets are made up of buyers, and buyers differ from one another in a variety of ways. Needs, resources, geographic location, purchasing attitudes and habits can be different. And any of these variables can be used as the basis for market segmentation.

Usually, segmentation means dividing the market into groups that are homogeneous in composition, among which those with whom the organization is going to work are selected. Actually segmentation is the process of analyzing the market and selecting those groups that correspond to the marketing interests of the organization and correlate with its capabilities. Generally speaking, then segmentation is an ordered, systematic attempt to identify the areas in which the organization will work, to whom this or that type of product will be supplied. In addition, segmentation allows you to create a certain social, psychological, economic portrait of a group of customers, create certain ways to distribute products.

The entire segmentation process can be roughly divided into six stages.

1. Determination of the current position of the company. At this stage, the general direction of the organization's activities is determined; the company is trying to fix how it will develop, what production capabilities, investment resources and human resources it has. In addition, it should be emphasized that the organization at this stage is of particular importance how the current position of the company is determined, how managers determine the boundaries / limits to which the organization can move and develop. This requires very special mechanisms for analyzing the organizational situation, ways of building joint activities managers of various functional departments. There are the most different ways analysis of the current situation of the organization.

2. Determining the needs and desires of consumers. This stage is probably one of the most important in the entire segmentation process, since it is on it that the specific parameters are analyzed, which in the future will become the basis for the created product samples. It is at this stage that organizations often make key mistakes regarding the definition of consumer preferences and wishes. It is at this stage that the correct or incorrect perception of the market situation arises, which can lead to large profits or to large financial failures.

3. Dividing the market in the right areas. It is this direction that is often associated with the entire segmentation process, although such an approach, in our opinion, is not justified, since it does not take into account all the other stages of segmentation, which we have already mentioned above. Segmentation is of two types − a priori and ad hoc. As part of a priori segmentation the manager independently decides, before conducting any research, on what parameters the market should be divided. As part of ad hoc segmentation first, a study is carried out, after which the relevant market segments are determined. From a psychological point of view, in both cases, organizations in the process of market division often fall under the influence of managers and their already formed position regarding the products with which the organization works. As a rule, managers in the process of segmenting determine segments based on their own experience and the experience of their colleagues, which is always fraught with certain errors. Therefore, in the chapter on new product development, we will focus on Special attention mechanisms for highlighting and defining all that is related to the needs of clients and their inclusion in the circle of organizational opportunities.

It should be noted that in the traditional scientific understanding of segmentation, its main parameter is the grouping of consumers according to a number of characteristics, namely:

Geographic segmentation (according to place of residence potential clients );

demographic segmentation(by age parameters, family size, gender, income, nationality, religious affiliation, etc.);

psychographic(social classes, lifestyles);

cognitive(e.g. habits, behaviors, status, participation in product consumption).

However, it should be specially noted that in Russia, due to the radical changes in the social structure of society in the 90s, due to the large difference in the amount of funds possessed by different consumer groups, such segmentation does not always correspond to the real requirements of the market. Therefore, the basis for segmentation in Russia should be determined solely with the participation of customers and based on their requirements and wishes.

4. Definition of product positioning. At this stage, it is determined how the product could be fixed in the minds of consumers and in their buying habits. At this stage, the way we want our product to be perceived by potential consumers is formed, how they would analyze and read its properties and characteristics.

5. Determination of the segmentation strategy.

6. Defining a strategy for the marketing mix. At this stage, specific actions are defined at the level of the organization in terms of product characteristics, pricing, advertising campaign and distribution systems. In fact, at this stage, the actions that the organization takes to implement the chosen strategy for a particular type of product are determined.

The stages of segmentation are shown in fig. ten.

Rice. ten. Stages of the market segmentation process (according to A. V. Rubtsov)

From the book Finance and Credit. Tutorial author Polyakova Elena Valerievna

2.3. The concept and functions of the financial market The function of money as a means of accumulation is possible due to the lack of synchronism between the receipt of income and their spending. The seller is not necessarily a buyer, demand is not, by definition, supply. Subjects

From the book Banking Law author Kuznetsova Inna Alexandrovna

45. The concept and features of a security as an object of the market valuable papers In accordance with paragraph 1 of Art. 142 of the Civil Code of the Russian Federation, a security is a document certifying, in compliance with the established form and mandatory details, property rights, the exercise or transfer of which

From the book Complex economic analysis enterprises. Short course author Team of authors

5.3. Assessment of market capacity and market share of a commercial organization The market capacity is determined by the total volume of sales of a particular type of product on it during a certain period of time in physical or value terms. This indicator characterizes

From the book Economic Statistics the author Shcherbak I A

49. The concept of the stock market Under the stock market in a broad sense refers to the securities market. The process of turning savings into investments takes place on it and intersectoral capital flows are formed. The stock market consists of supply and demand and

From the book Economic Theory: Lecture Notes author Dushenkina Elena Alekseevna

1. The essence of the market. The main elements of the market The emergence of a social division of labor that arose between pastoral and agricultural tribes, as well as an increase in the productivity and efficiency of social production, led to the need for exchange

From the book Microeconomics: lecture notes author Tyurina Anna

1. The concept of the market, the conditions for its occurrence The market is a system of economic relations that develop between the seller and the buyer regarding the production and sale of the necessary goods and services that meet the needs of economic

From the book Marketing. Answers to exam questions author Zamedlina Elena Alexandrovna

24. The concept of the market and its main types The concept of "market" is one of the leading places in marketing. Very often, the concept of the market is interpreted as a set of existing and potential buyers of goods. A market may form for some product, service or other object,

From the book How to save on marketing and not lose it author Monin Anton Alekseevich

The concept of the market The market is a set of socio-economic relations in the field of distribution and exchange, through which the implementation is carried out marketable products and the social character of the work contained in it is finally recognized. The market is a form

author Dixon Peter R.

Market Segmentation Models Much of the literature has been devoted to describing how to segment a market using demographic criteria such as income, class, age, or geographic area, and almost all marketing research provides significant lists of

From the book Marketing Management author Dixon Peter R.

Limitations of Market Segmentation If the method of market segmentation does not affect the positioning of a product or service and the marketing tactics of the firm, then the market segmentation technique used by the firm leaves much to be desired. However, the market segmentation model is not simply

From the book Economic Statistics. Crib author Yakovleva Angelina Vitalievna

Question 46 The concept of economic production and its boundaries in the SNA The system of national accounts is a system for calculating macroeconomic indicators designed to characterize and analyze the development of a market economy in

author Mann Igor Borisovich

89. And how do you feel about the now fashionable segmentation of consumers not by socio-demographic, but by behavioral characteristics? Different markets need different approaches to segmentation. Somewhere the simplest approach is enough: for example, divide all consumers into those

From the book Marketing. And now the questions! author Mann Igor Borisovich

245. What is the best way market segmentation? One that will open up a completely new market for you - without competition for the first

From the book Business Law author Smagina I A

23.1. The concept and subjects of the securities market Currently, relations related to the circulation of securities are regulated by the following acts: Federal Law "On Joint Stock Companies"; Federal Law of April 22, 1996 No. 39-FZ "On the Securities Market"; Federal Law

by Evans Vaughan

4. Device for Segmentation (Koch) Tool Having mentioned the topic of horticulture in Pareto's work while explaining the essence of the previous tool, a common problem that every gardener who has lost all hope of a good harvest often faces, we touched on

From the book Key Strategic Tools by Evans Vaughan

16. Market Sizing and Market Creation (Evans) The Size tool does matter. Without knowing the size of the market, you cannot determine the size of the market share. Without knowledge of relative market share, it will be difficult for you to judge your competitive position and you

Market segmentation is the process of dividing the market (consumers) into groups according to certain characteristics. The main purpose of this action is to study the reaction of a particular group to a particular product, as well as the choice of the target (main) occupies a dominant position in any marketing research companies.

What is market segmentation for?

Any company works for its customers. Naturally, they all differ in one way or another from each other. Market segmentation is the process of highlighting certain parameters that distinguish one group from another. One buyer from another can be distinguished by his place of residence, habits, religious views and even attitude to life. Taking into account all these differences, the company can produce different products for each segment. Each group is naturally different from each other. One of the differences is their number. Many firms focus their attention only on the largest group. Although there are quite a few companies that focus on one narrow lets them avoid a lot of competition and have regular customers. Segmentation provides an opportunity to study your customers better, as well as to identify which groups do not use the services of a particular company. Thus, market segmentation is in the activity of any company. This phenomenon based on certain principles.

Principles of market segmentation

Segments can differ according to several criteria:

1. Geographically. Consumers can be divided into urban and rural populations, as well as by place of residence - by regions, cities and even countries.
2. On a demographic basis. The most common is the division of potential customers by age, income level and marital status. Among the additional: religion and
3. On a psychographic basis. The division of consumers is carried out on the basis of the characteristics of a particular person. Exists various methods determining the psychographic type of a person, according to which the market segmentation takes place. Example: a person can be attributed to one of two groups - to psychocentrics or allocentrics.

Among other signs, consumers can be distinguished by their attitude to products, by consumption style and by personal characteristics.

How to select segments

The choice of a particular product can be influenced not only by one age of consumers, but also, for example, by income level or geographical location. Therefore, the more criteria will be allocated when studying consumers, the more clearly the whole situation on the market will be visible. In the same time a large number of signs complicate the situation considerably. Simply put, the more segments, the fewer consumers in each group. How many segments to allocate and by what parameters depends on individual characteristics enterprises.

Thus, market segmentation is a process that must follow a certain pattern, depending on the goals of the enterprise.