Emerging Approaches to More Meaningful Clusters by Michael Richarme Consumer opinion research has a well-established track record, stretching over the past five or six decades. Conducting opinion research among businesses, however, is much more problematic. This is particularly evident at the simplest level of analysis, customer segmentation. However, segmentation techniques are evolving, and techniques that were common practice in the recent past are rapidly being supplanted by newer, more meaningful segmentation techniques.
Market Segmentation by Jerry W. Market segmentation is a much broader concept, however, and it pervades the practice of business throughout the world.
What is market segmentation? That is, the members of a market segment share something in common.
The purpose of segmentation is the concentration of marketing energy and force on the subdivision or the market segment to gain a competitive advantage within the segment. Concentration of marketing energy or force is the essence of all marketing strategy, and market segmentation is the conceptual tool to help achieve this focus.
Our focus is on consumer markets rather than business markets, but most of the following concepts also apply to B2B. Geographic Segmentation This is perhaps the most common form of market segmentation, wherein companies segment the market by attacking a restricted geographic area.
For example, corporations may choose to market their brands in certain countries, but not in others. A brand could be sold only in one market, one state, or one region of the United States. Many restaurant chains focus on a limited geographic area to achieve concentration of force.
Regional differences in consumer preferences exist, and this often provides a basis for geographic specialization. For example, a company might choose to market its red-eye gravy only in the southeastern U. Likewise, a picante sauce might concentrate its distribution and advertising in the Southwest.
A chainsaw company might only market its products in areas with forests.
Geographic segmentation can take many forms urban versus rural, north versus south, seacoasts versus interior, warm areas versus cold, high-humidity areas versus dry areas, high elevation versus low-elevation areas, and so on.
These examples also reveal that geographic segmentation is sometimes a surrogate for or a means to other types of segmentation. Distribution Segmentation Different markets can be reached through different channels of distribution. This type of distributional segmentation is common, especially among small companies that grant each channel a unique brand to gain distribution within that channel.
Other examples of distributional segmentation would be an upscale line of clothing sold only in expensive department stores, or a luxury hair shampoo sold only through upscale beauty salons.
Media Segmentation While not common, media segmentation is sometimes a possibility.
It is based on the fact that different media tend to reach different audiences.Market segmentation is the activity of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on some type of shared characteristics.
E-commerce: Market segmentation strategies can grow your sales Project Inquiry The more information you provide, the better we’ll understand your project and find the right solutions for you. Definition: Market segmentation is the process of evaluating and categorizing customer groups to enable targeted marketing efforts.
Businesses of every size undergo market segmentation to better understand and satisfy the needs of different consumers, also called target demographics, to improve. The approach to business market segmentation is conceptually similar to the approach for consumer markets. As we know, while business markets have less potential customers (as opposed to consumer markets), B2B firms still need to be selective when determining their strategic approach to the market.
Jun 29, · Segmentation is the process of dividing a target market group into sub-sections that can then be communicated with through specific communication channels and key messages.
Business markets can be. Jun 29, · Market segmentation is an integral part of a company's marketing strategy. It is the process of breaking down a larger target market into smaller, more homogeneous groups of .