For example, an automobile manufacturer analyzes the socioeconomic traits, wants, needs, and buying habits of a target market. The information allows company leaders to create and market a small convertible car for the company's most reliable market segment--middle-aged men who want to recapture their youth.
Instead of trying to satisfy everyone in the market, the manufacturer develops a car that matches the needs of the target segment, or the consumers deemed most likely to buy the product.
Market segmentation benefits:
· Identifies consumers
Market segmentation provides a variety of benefits when creating your marketing strategy. First, it identifies the consumers you must analyze. By understanding the background and habits of your target market, you can effectively create a marketing mix tailored to the wants and needs of the people within that market.
· Enhances production, promotion, sales efforts
Market segmentation can also enhance the efficiency of your production, promotion, and sales efforts by targeting appropriate consumers. For instance, your research may identify three specific consumer groups--women, Asians, and senior citizens--that use your product but have different needs, desires, and buying habits.
By customizing a marketing mix for each segment, you can allocate the appropriate amount of time, effort, and money to successfully meet the needs and desires of each targeted consumer.
In order for your market segmentation strategy to be effective, you must understand the market and how to properly divide the consumers within it. It is important to consider several characteristics when selecting the appropriate method to implement your market segmentation strategy.
Market segmentation method:
· Demographic
Demographic segmentation is perhaps the most common method used to group members in a market. Variables in this approach include age, gender, education, occupation, and income. You should also consider the number of people in a family to better understand the buying habits of the household.
By identifying demographic segments, you can develop products that are easy for children to use, convenient for working women or retirees, or appropriately priced for a family of four. Demographic segmentation also lets you determine the proper promotional channels to use to reach groups such as Generation Xers, Baby Boomers, or senior citizens.
· Geographic
Another popular method used to divide types of consumers is geographic segmentation. This technique categorizes consumers by the ********s of their homes. You should consider whether your target consumers live in the city, a suburb, or the country. The climate experienced by each consumer may also be an important variable in the geographic segmentation strategy.
Instead of trying to satisfy everyone in the market, the manufacturer develops a car that matches the needs of the target segment, or the consumers deemed most likely to buy the product.
Market segmentation benefits:
· Identifies consumers
Market segmentation provides a variety of benefits when creating your marketing strategy. First, it identifies the consumers you must analyze. By understanding the background and habits of your target market, you can effectively create a marketing mix tailored to the wants and needs of the people within that market.
· Enhances production, promotion, sales efforts
Market segmentation can also enhance the efficiency of your production, promotion, and sales efforts by targeting appropriate consumers. For instance, your research may identify three specific consumer groups--women, Asians, and senior citizens--that use your product but have different needs, desires, and buying habits.
By customizing a marketing mix for each segment, you can allocate the appropriate amount of time, effort, and money to successfully meet the needs and desires of each targeted consumer.
In order for your market segmentation strategy to be effective, you must understand the market and how to properly divide the consumers within it. It is important to consider several characteristics when selecting the appropriate method to implement your market segmentation strategy.
Market segmentation method:
· Demographic
Demographic segmentation is perhaps the most common method used to group members in a market. Variables in this approach include age, gender, education, occupation, and income. You should also consider the number of people in a family to better understand the buying habits of the household.
By identifying demographic segments, you can develop products that are easy for children to use, convenient for working women or retirees, or appropriately priced for a family of four. Demographic segmentation also lets you determine the proper promotional channels to use to reach groups such as Generation Xers, Baby Boomers, or senior citizens.
· Geographic
Another popular method used to divide types of consumers is geographic segmentation. This technique categorizes consumers by the ********s of their homes. You should consider whether your target consumers live in the city, a suburb, or the country. The climate experienced by each consumer may also be an important variable in the geographic segmentation strategy.