Market segmentation strategy is a way of dividing a large market into smaller units. The units share among them some common characteristics. The use of this strategy is a growing trend that has been continually adopted by many business entities. By creating these segments, it is easier to address the specific needs of each consumer or group of consumers. In the end the consumer is happy and the returns are higher for the business.
It is important to conduct research that will guide the process. Such research helps in the identification of the problems affecting the specific groups of consumers. It also comes up with ways of solving the identified problems. At the same time, the criteria that will be used in creating the segments are determined. This research may last days, weeks or months depending on the size of market.
There are many ways that can be used to identify the required segments. These include the use of face to face interviews, questionnaires, telephone interviews and email surveys among others. The interviews are structured in a way that will help gather information on their bio data, their geographical location, and tastes and preferences. Customers who respond in a similar way are usually classified together since they are likely to be faced with the same challenges.
There are numerous criteria that can be used when segmenting. Commonly used characteristics include age, gender, consumer tastes and preferences and geographical location. Differences in age affect the type of goods that are demanded and it is important that a business appreciates this. The elderly tend to be rather resistant to change while the young are more likely to embrace changes in products and service delivery.
Gender bears great influence on the market as well. Men and women demand different goods and respond differently to changes in the market. While women are more likely to be aware of changes in fashion, men tend to be more conservative. Women are also more regular shoppers than women world over. The business should therefore ensure that this is taken into account when designing various goods and services.
Seasonality in demand is a form of behaviour segmentation that is fairly common and affects a variety of goods and services. The demand for certain goods increases during certain seasons and decreases thereafter. If the producer has this information, then they will make sure that the goods in question are produced at the required time and adjust downwards later to avoid unnecessary losses.
Behavioural segmenting is also done based on product loyalty. The customers are classified into different groups depending on the degree of loyalty. Those that are most loyal should ideally be rewarded so as to encourage them. Factors that are contributing to lack of loyalty should be identified and dealt with.
Market segmentation strategy is a way of ensuring that demands of customers are met. It is a process that helps the business to identify the preferences of different consumer groups and how to meet them. It differs from the traditional methods of doing business in which the large pool of consumers was targeted as a whole. Most businesses report an improvement in sales after adoption of this strategy.
It is important to conduct research that will guide the process. Such research helps in the identification of the problems affecting the specific groups of consumers. It also comes up with ways of solving the identified problems. At the same time, the criteria that will be used in creating the segments are determined. This research may last days, weeks or months depending on the size of market.
There are many ways that can be used to identify the required segments. These include the use of face to face interviews, questionnaires, telephone interviews and email surveys among others. The interviews are structured in a way that will help gather information on their bio data, their geographical location, and tastes and preferences. Customers who respond in a similar way are usually classified together since they are likely to be faced with the same challenges.
There are numerous criteria that can be used when segmenting. Commonly used characteristics include age, gender, consumer tastes and preferences and geographical location. Differences in age affect the type of goods that are demanded and it is important that a business appreciates this. The elderly tend to be rather resistant to change while the young are more likely to embrace changes in products and service delivery.
Gender bears great influence on the market as well. Men and women demand different goods and respond differently to changes in the market. While women are more likely to be aware of changes in fashion, men tend to be more conservative. Women are also more regular shoppers than women world over. The business should therefore ensure that this is taken into account when designing various goods and services.
Seasonality in demand is a form of behaviour segmentation that is fairly common and affects a variety of goods and services. The demand for certain goods increases during certain seasons and decreases thereafter. If the producer has this information, then they will make sure that the goods in question are produced at the required time and adjust downwards later to avoid unnecessary losses.
Behavioural segmenting is also done based on product loyalty. The customers are classified into different groups depending on the degree of loyalty. Those that are most loyal should ideally be rewarded so as to encourage them. Factors that are contributing to lack of loyalty should be identified and dealt with.
Market segmentation strategy is a way of ensuring that demands of customers are met. It is a process that helps the business to identify the preferences of different consumer groups and how to meet them. It differs from the traditional methods of doing business in which the large pool of consumers was targeted as a whole. Most businesses report an improvement in sales after adoption of this strategy.
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