Thursday, May 21, 2009

market segmentation

Market segmenting is the process that a company or firm divides the market into distinct groups who have distinct needs, wants, behaviour or who might want products of different kinds & services <(Aminjonov Mirhabibjon, "Marketing Introduction"(2009))> Broadly, markets can be divided according to a number of general algorithm, such as by industry or public versus private, although industrial market segmentation is obviously different from consumer market segmentation, both have homogeneous objectives. All of these approach are merely proxies for true segments, which don't always fit into convenient demographic boundaries.
Consumer-based market segmentation can be carried out on a product specific basis, to provide a close match between specific products and individuals. However, a number of generic market segment phenomenon also exist, for example . the Claritas Prizm system provides a broad segmentation of the population of the United States based on the statistical analysis of zip codes.
The process of segmentation is distinct from targeting (choosing which segments to treat) and positioning (designing an ideal marketing mix for each segment). The overall idea is to depict groups of similar customers and potential customers; to prioritize the groups to address; get to know their behaviour; and to respond with the right marketing strategies that satisfy the different preferences of each chosen segment. Revenues are thus improved.
Advanced segmentation can lead to significantly improved marketing effectiveness. Distinct segments can have varieties of industrial structures and however have higher or lower attractiveness (Michael Porter). With the right segmentation, the right lists can be bought, advertising results can be enhanced and customer satisfaction can be increased resulting to better reputation.

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