Mass marketing has been with us for several decades if not centuries. This method is a fairly simple method of advertisement but has the major disadvantage of lacking specific targets. It focuses on the entire population hoping that the consumers will be reached. As a result, specific concerns about goods and services are not adequately addressed. In view of this fact, many advertisers are now turning to another option, market segmentation strategy.
There are several methods that can be employed when carrying out this division. What is important to know is that, one will adopt their preferred method depending on the nature of goods and services that they produce. Another important consideration is the nature of the industry as regards, for example, the number of players and the existing laws.
There are a number of things that you need to have in mind as you segment your consumer pool. Ideal segments have to meet a set of minimum requirements. Each segment must be profitable enough to support the administration costs that are directly attributable to it as well as the costs involved in production of the goods or services. It is also important to ensure that there is homogeneity within the segment.
It is important to use stable criteria when segmenting. Attributes that only exist for a short period of time should not be used. When proper criteria are used, the segment remains in existence for a long time and this gives the marketer an opportunity to reap from the product segmentation that has taken place.
There are many characteristics of consumers that can be chosen for the process of segmentation. For example, the consumers can be divided based on their geographical location. They may be classified depending on the countries, cities or neighborhoods that they come from. Profiles that take into account their geographical location are created and used for decision making.
Behavioral segmentation refers to the creation of consumer groups depending on their degree of knowledge of different products or services. It also takes into account their attitudes towards the various products or services. A significant number of consumers will buy goods or services because of certain prevailing conditions. This is popularly referred to as occasional buying. The producer and marketer need to be aware of the existence of such groups and ensure that they avail the required products at the appropriate times. For instance, they need to provide gifts for Christians during Easter and Christmas.
Psychographic segmentation is another popular method among advertisers. In this approach, the market will be subdivided based on the demographic and psychological characteristics of the consumer pool. To achieve this, attributes such as social classes, personal values and beliefs and lifestyle have to be taken into account.
What one needs to know is that market segmentation strategy can be achieved using virtually any form of discrete variable. This includes gender, age and income among others. If one chooses to use a preexisting variable, the result is known as a priori segment. The other alternative entails conducting research on the market with the aim of identifying the most appropriate variable. This gives rise to a type called post-hoc segments..
There are several methods that can be employed when carrying out this division. What is important to know is that, one will adopt their preferred method depending on the nature of goods and services that they produce. Another important consideration is the nature of the industry as regards, for example, the number of players and the existing laws.
There are a number of things that you need to have in mind as you segment your consumer pool. Ideal segments have to meet a set of minimum requirements. Each segment must be profitable enough to support the administration costs that are directly attributable to it as well as the costs involved in production of the goods or services. It is also important to ensure that there is homogeneity within the segment.
It is important to use stable criteria when segmenting. Attributes that only exist for a short period of time should not be used. When proper criteria are used, the segment remains in existence for a long time and this gives the marketer an opportunity to reap from the product segmentation that has taken place.
There are many characteristics of consumers that can be chosen for the process of segmentation. For example, the consumers can be divided based on their geographical location. They may be classified depending on the countries, cities or neighborhoods that they come from. Profiles that take into account their geographical location are created and used for decision making.
Behavioral segmentation refers to the creation of consumer groups depending on their degree of knowledge of different products or services. It also takes into account their attitudes towards the various products or services. A significant number of consumers will buy goods or services because of certain prevailing conditions. This is popularly referred to as occasional buying. The producer and marketer need to be aware of the existence of such groups and ensure that they avail the required products at the appropriate times. For instance, they need to provide gifts for Christians during Easter and Christmas.
Psychographic segmentation is another popular method among advertisers. In this approach, the market will be subdivided based on the demographic and psychological characteristics of the consumer pool. To achieve this, attributes such as social classes, personal values and beliefs and lifestyle have to be taken into account.
What one needs to know is that market segmentation strategy can be achieved using virtually any form of discrete variable. This includes gender, age and income among others. If one chooses to use a preexisting variable, the result is known as a priori segment. The other alternative entails conducting research on the market with the aim of identifying the most appropriate variable. This gives rise to a type called post-hoc segments..
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