Definition of market segment .
A market segment is a group of people or organizations sharing one or more characteristics that cause them to have similar product and/or service needs.
Improved segmentation can lead to significantly improved marketing effectiveness. Distinct segments can have different industry structures and thus have higher or lower attractiveness (With the right segmentation, the right lists can be purchased, advertising results can be improved and customer satisfaction can be increased leading to better reputation.
Levels of Market Segmentation Because buyers have unique needs and wants, each buyer is potentially a separate market. Ideally,
Then, a seller might design a separate Marketing program for each buyer.
However, although some companies attempt to serve buyers individually, many
Others face larger numbers of smaller buyers and do not find complete segmentation.
• Market Segmentation
1. Identify bases for
Segmenting the market
2. Develop segment profiles
• Market Targeting
1. Develop measure of
Segment attractiveness
2. Select target segments
• Market positioning 1. Develop positioning for
target segments
2. Develop marketing
Mix for each segment
Improved segmentation can lead to significantly improved marketing effectiveness. Distinct segments can have different industry structures and thus have higher or lower attractiveness (With the right segmentation, the right lists can be purchased, advertising results can be improved and customer satisfaction can be increased leading to better reputation.
Levels of Market Segmentation Because buyers have unique needs and wants, each buyer is potentially a separate market. Ideally,
Then, a seller might design a separate Marketing program for each buyer.
However, although some companies attempt to serve buyers individually, many
Others face larger numbers of smaller buyers and do not find complete segmentation.
• Market Segmentation
1. Identify bases for
Segmenting the market
2. Develop segment profiles
• Market Targeting
1. Develop measure of
Segment attractiveness
2. Select target segments
• Market positioning 1. Develop positioning for
target segments
2. Develop marketing
Mix for each segment
