This is evident from observation and from the proliferation of popular books describing the heterogeneity of local and global markets. It is one of the most common demographic variables used to segment markets. Consumer segmentation also bases on the buyers lifestyle and context because of most consumers purchases fulfill highend needs rather than simply functional ones brassington and pettitt, 2006, p. The four bases for segmenting consumer market are as follows. The bases for segmentation of consumer markets may be divided into two broad categories of variables. Describe the characteristics of markets and market segments explain the importance of market segmentation discuss criteria for successful market segmentation describe the bases commonly used to segment consumer markets describe the bases for segmenting business markets.
The goal of market segmentation is to separate the general market into categories, which can then be targeted and marketed to most effectively. Bases for consumer market segmentation behavioristic segmentation. It deals with the issues that are already discussed by the researchers and also identifies the research gap for the further researches. Normally, as stated by philip kotler, bases can be classified into two categories as shown in figure 5. Market segmentation and its impact on customer satisfaction with especial reference to commercial bank of ceylon plc puwanenthiren premkanth abstract in this competitive commercial world, an organization has to satisfy the needs and wants of the customers, and has to attract new customers, and hence. List and discuss the major bases for segmenting consumer and business markets 3. A marketer has to try different segmentation variables, alone. A set of target groups to which future marketing efforts will be focused. Consumer market can be segmented on the following customers characteristics. Market segmentation and its impact on customer satisfaction. Pdf consumer segmentation methods for the wine market. Bases for segmenting industrial markets consumer markets and business markets use many of the same bases to segment their markets.
The lifestyle preferences of these target groups to make it easier to develop practical marketing strategies. Market segmentation is one of the most efficient tools for marketers to. Demographic segmentation divides the markets into groups based on variables such as age, gender, family size, income, occupation, education, religion, race and nationality. At the heart of successful market definition is the concept of a prospect a. Business to consumer market segmentation 3 quizlet. A large number of variables are used to segment a consumer market. Products and services, presented in markets, are of very big variety. Certain brands tend to be associated with certain occasions.
Segmenting industrial product markets introduces additional bases, whilst precluding others. The analysis aids in determining objectives, opportunities, and constraints to be considered when selecting target markets and developing marketing mixes. The market segmentation means dividing the entire consumer market into the subgroups, such that the customers in each group share the common set of needs and wants and have more or less similar or related characteristics. Pdf understanding the new bases for global market segmentation. Discuss how companies position their products for maximum competitive advantage in the marketplace. Jun 17, 2015 bases for segmentation segmentation of consumer based on factors like climate zone, continents country, region, state, district, and urbanrural area, constitutes geographic segmentation marketer, who operate globally, often segment the market segments the market by continentscountryregion in the first instance, and then go for segmentation. For example, corporations may choose to market their brands in certain. A market segment is a small unit within a large market comprising of like minded individuals.
One market segment is totally distinct from the other segment. Often the same industrial products have multiple applications. Marketing strategy segmentation targeting positioning pdf. Segmenting the market for amcham finland abstract market of the 21st century, covering countries from all over the world, is enormously big. Geographic segmentation this is perhaps the most common form of market segmentation, wherein companies segment the market by attacking a restricted geographic area. Consider, for example, the nine nations of north americagarreau, 1982, latitudes and attitudes. Top 4 bases for segmenting consumer market your article library. It is usually believed that the variables of the behavior aspect are regarded as the most effective starting point for developing market segments. Explain how companies identify attractive market segments and choose a target marketing strategy.
Results showed that the consumer market online consists of three segments that are generally commonly used are. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Market segmentation is a consumer oriented process and. A firm must do a complete situational analysis when embarking on a new or modified marketing program. Overview into the dynamics of market segmentation market segmentation involve the breaking down of the total market for a product or service into distinct subgroups or segments, where each may conceivably represent a distinct target market to be reached with a distinctive marketing mix with the aim of meeting the customers needs and wants. Some companies offer different products, or use different marketing approaches for. At level three, we take presegmented definition and apply. Depending on the level of competition in the product market, segmentation is the natural response of marketers to deal with the situation in market. Scribd is the worlds largest social during one of the steps in the marketing segmentation, targeting, and positioning process, the marketer develops measures of segment attractiveness. For example, an individual may buy one brand of beer if he or she were taking a sixpack to a party, and another if it was for a occasion with a friend. Market segmentation allows marketers to reach their target audience by 4 ways to segment customer base into demographic, geographic, psychographic and behavioral segmentation demographic segmentation. Segmentation, targeting, and positioningconsumer behavior. Demographic, geographic, geodemographic, psychographic and behavioural segmentation as product markets tend to mature, customer needs often become more specialized.
May 03, 2014 lamb, hair, mcdaniel chapter 8 segmenting and targeting markets 201220 2. Pdf segmentation of markets based on customer service. It focuses on the definition, basis of market segmentation and issues related to. There can be several such bases used for segmenting consumer market.
In demographic segmentation, the market is divided on the basis of demographic. Market segmentation is a marketing concept which divides the complete market set up into smaller subsets comprising of consumers with a similar taste, demand and preference. This article addresses the research question, what is the best method of consumer market segmentation. The basic approach to segmentation, targeting and positioning does not differ greatly between consumer and organizational markets. The uses of this technique are discussed, together with the procedures for segmenting markets. Consumer and business markets cannot be segmented on the bases of same variables because of their inherent differences.
By using any of these segmentation bases, either individually or in combination, an organization can construct market segments for evaluation to help them select appropriate target markets. The consumer market segments that have high potential to be successful foster or adoptive households. These include consumer characteristics such as age, income, occupation, gender, personality, usage quantity, age, and lifestyle. In order for companies to succeed in selling their. Marketer will identify the customer need and want then only decide if it is. Market segmentation, in simple words, is dividing consumers into various groups.
Oct 21, 2015 the consumer market segmentation is not confined to a single method. Some of the major bases for market segmentation are as follows. Explain how companies identify attractive consumer and business markets 4. Decision making, market segmentation, benefits of market segmentation, philosophies of market segmentation, bases for market segmentation create new markets for their products. The main difference is that consumer segments always much larger in terms of number of potential buyers. Choice of consumer segmentation bases market segmentation. For a focused marketing program, market segments should be based on certain clearcut variables, like geographic, demographic, psychographic. Demographic segmentation is a marketing strategy that segment the market based on age, gender, family life cycle, income, occupation and education. The bases of segmentation could be classified into the following four categories. Market definition, market segmentation and brand positioning. There are number of variables involved in consumer market segmentation, alone and in combination.
After completing this chapter, student should be able to understand. Small businesses divide large markets into multiple, individual market segments, which group customers who share particular characteristics. Bases for segmenting organizationalindustrial markets in. Segmenting a market facilitates the creation of marketing mixes a combination of product, price, place and promotion that respond to. A market is a collection of consumers who can be divided into different groups using some criteria. Business buyers can be segmented geographically, demographically or behaviorally. The market structure is best viewed by the marketer by applying different segmentation variables both in the alone form as well as in the combined form. Good return is obtained with offerings that are relevant to the existing activities of individuals, made at a general price they find acceptable, made available at outlets they already frequent. Understanding the new bases for global market segmentation article pdf available in journal of consumer marketing 205. Market segmentation meaning, basis and types of segmentation. Market segmentation is the activity of dividing a broad consumer or business market, normally consisting of existing and potential customers, into subgroups of consumers known as segments based on some type of shared characteristics. As difficult as segmenting consumer markets is, it is much simpler and easier than segmenting industrial markets.
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