WHAT IS MARKET SEGMENTATION?
Market segmentation is dividing the market into smaller specific groups, with specific needs, characteristics and behaviors, which will become the target market.
WHAT IS A TARGET MARKET?
A target market is the specific group of people who share the same needs, characteristics and behaviors that a company decides to target or to sell to.
WHY IS THERE A NEED TO SEGMENT THE MARKET?
There are several reasons for market segmentation. Some are:
- Buyers are too numerous.
- Buyers are too widely scattered.
- Businesses vary in their product.
- Business look for the market to earn the most profit.
- Business look for buyers who have the most interest in their product.
WHAT IS A VALID MARKET SEGMENT?
A valid market segment is:
- A big enough market size
- Differentially responsive to one
THERE ARE 4 WAYS TO SEGMENT A MARKET
These are the benefits desired by a market
These are age, gender, civil status, income, education, profession, location, family size, religion, nationality, climate, etc.
3. Psycho graphics
These are the attitudes, values, lifestyles, opinions, etc.
These are the purchase frequency, user status, user rate, loyalty status, readiness, etc.