Market Segmentation Strategy

Market segmentation strategy is to divide the market into groups, where individuals have the same needs and desires of the services and products. It could also be a segmentation of persons on the basis of behavior, culture and the economic situation. To have one idea more clear of what is the segmentation of the market, you can always look at the definition provided by dictionary.com business. It is defined as "The process of definition and sub-frontloading dividing a homogeneous big market in clearly identifiable segments that have the same needs, desires or characteristics of the demand".

Why a market segment?

Prior to the marketing of products or services, it is necessary to understand their customers, and find ways and means to meet your needs. This is essential to stay ahead of the competition and build the brand. This is done through extensive market research. Although it is not possible to meet individual needs and understand all of them, a clearly defined market segmentation strategy will help to create a market to serve groups of individuals that make economic sense to mass produce and distribute. The concept of objective market segmentation strategy also falls under this blanket, except the first acknowledges and understands the diversity of customers and offers them products and services that adapt to your specific needs. A successful strategy in the market strives to understand different segments and their different needs, the works exhibited in the common wants and responds immediately.

Strategies for market segmentation

How is a segmented market is based on certain variables. The variables used for segmentation include: differences behavioral, demographic, psychographic and geographic.

Psychographic segmentation

The segmentation of the people according to their style of life and its values, and how translates into consumption or purchases of products or services is what about the psychographic segmentation. Is like an interest, opinions, values, attitudes, and activities that perform, affect their decisions and why a group of people who leaned toward one product more than others.? A high status would mean an expensive habit fly, while a value of savings will result in a flight of the economy.

Geographic segmentation

Geographic segmentation is done by dividing people (markets) in different geographic locations. Country, State or district, the King of the high bourgeoisie, climate, the size of a place segmented in their population size in age of sages, etc, all play a role in the development of market strategies. This helps producers and marketers to understand what is going to sell and what not. For example, a market of winter clothes that definitely won't work in warm regions.

Demographic segmentation

Demographic segmentation refers to a comprehensive study of potential customers. Whereas the marketing of a product, many variables such as age, gender, education, income, size of family, occupation, socioeconomic status, culture, religion, language, nationality and are taken into account. There are many cases in which such segmentation has worked very profitable. This segmentation plays a vital role in the determination of whether a product can be marketed in mass or designed for a specific clientele.

Behavior segmentation

Behavioral segmentation is based on the needs of the client and the reaction back to these needs or for the purchase of products and / or services. This study is carried out in all the variables that are closely related to the product itself, as loyalty to a brand in particular, the profitability in terms of benefits and use the circumstances responsible for the purchase, if the customer is a regular, a first timer, and or has the potential of becoming a client, and if the willingness to buy is linked to the condition.