Bases for consumer market segmentation behavioristic. Marketers utilise this process due to the prevalence of mature markets, greater diversity in customer needs, and its ability to provide focus for an organisations marketing strategy and resource allocation among markets and products baines and fill, 2014. Sep 15, 2014 describe the bases commonly used to segment consumer markets. Here, the segmentation is done on the basis of the geographical. Consumer markets are segmented based on consumer characteristics geographic. Segmenting industrial product markets introduces additional bases, whilst precluding others. Bases for consumer market segmentation there are number of variables involved in consumer market segmentation, alone and in combination. The reason for segmenting consumer markets there is no single way to segment a market. 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. 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. Markets may be segmented based on how the product is used. Market segmentation is one of the oldest marketing trick in the books. Geographic demographic psychographic behavioralistic 1.
The management can respond to meet changing market demand. This topic discusses segmentation bases for consumer markets, there is a separate topic area relating to business market segmentation bases variables. At the heart of successful market definition is the concept of a prospect a. After segmenting a consumer market and selecting one or several target markets, the product or service must be positioned.
Demographic segmentation divides the markets into groups based on variables such as age, gender, family size, income, occupation, education, religion, race and. Market definition, market segmentation and brand positioning. However businesstobusiness customers have more complicated needs, which can make a needsbased segmentation both difficult and even dangerous. The common bases for segmenting consumer markets include all. Consider, for example, the nine nations of north americagarreau, 1982, latitudes and attitudes. Marketing segmenting and targeting markets quizlet. A market segment is a small unit within a large market comprising of like minded individuals. The common bases for segmenting consumer markets include. Such schemes typically consist of grouping or clustering a set of specified countries on the basis of a wide array of macroeconomic variables. Demographic segmentation is based on age, gender, income level, ethnicity, and family lifecycle characteristics.
Apr 23, 2011 segmenting business markets consumer and business marketers use many of the same variables to segment their markets. Segmenting consumer markets from principles of marketing. Segmenting the market for amcham finland abstract market of the 21st century, covering countries from all over the world, is enormously big. Here, market segmentation calls for dividing the market into. Often the same industrial products have multiple applications. Customer segmentation strategy enables marketing managers to stretch budgets and achieve the desired goals by reaching the most relevant groups to becomes leads. Relevance of segmentation dimensions at least some initial dimensions can be determined from. Segmenting the chinese consumer goods market a hybrid approach.
Market segmentation bases for segmenting consumer markets geographic demographic age, gender, family size and life cycle, or income psychographic social class, lifestyle, or personality behavioural occasions, benefits sought, user status, usage rate, loyalty nations, states, regions or cities. It is usually believed that the variables of the behavior aspect are regarded as the most effective starting point for developing market segments. After segmenting a consumer market and selecting one or several. Market consists of buyers and buyers vary from each other in different ways. There are 4 types of market segmentation which are most commonly used.
This is evident from observation and from the proliferation of popular books describing the. The firms can segment the market on the following bases. Market segmentation of consumer markets segmenting consumer markets is generally much simpler and easier than segmenting industrial markets, because industrial products, such as forklifts and trucks, have multiple applications, and appeal to diverse customer groups. Pdf segmentation of markets based on customer service. Geographic segmentation this is perhaps the most common form of market segmentation, wherein companies. The common bases for segmenting consumer markets include all of the following from business 101 at rutgers university, newark. For a focused marketing program, market segments should be based on. After completing this chapter, student should be able to understand. Marketing segmenting and targeting markets flashcards. Top 4 bases for segmenting consumer market your article library. In the following the variables used in segmenting consumer markets will be explained. 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. Describe the characteristics of markets and market segments explain the importance of.
This segmentation is based on places or locations where consumers reside. Well address the development of market segmentation. Bases for consumer market segmentation behavioristic segmentation. Market segmentation helps marketers define customer needs and wants more accurately. Brands may used as segmentation bases and segment descriptors. Market segmentation and its impact on customer satisfaction with especial reference to commercial bank of. 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. Bases for segmentation in consumer markets consumer markets can be segmented on the following customer characteristics. Segmenting consumer and business markets bases for segmenting consumer marketsform segments by looking at descriptive characteristics.
An analysis on the conditions and methods of market segmentation. What are some bases for segmenting consumer and organizational buyer markets. Describe the bases commonly used to segment consumer markets. 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. Segmentation variables may be used singlycombination. A new approach to country segmentation utilizing multinational diffusion patterns country segmentation has been proposed to assist in marketing strategy decisions for international marketing man agers. Introduction d appeals market segmentation is an essential part of market segmentation presents an opportunity to any business. There are several basis available for segmenting the market where marketers may use any one or a combination of more than one basis to segment the market. Geographic segmentation is based on region, size, density, and climate characteristics.
American journal of business education june 2011 volume 4. The most important part of the global segmentation process for a marketing manager to avoid targeting issues and to sustain a marketing mix in a global economy is to first select your target market then your design, implement it next and then try to sustain the marketing mix. Segmenting the market for amcham finland abstract market of the 21st century, covering countries from all over the world, is enormously. Industrial markets can be segmented using almost the same variables employed in consumer market segmentation. This free study guide has been prepared to meet the information needs of universitylevel marketing students throughout the world. This study identifies and characterizes 12 market segments that are internally homogeneous and externally heterogeneous with regard to the product related needs and. As difficult as segmenting consumer markets is, it is much simpler and easier than segmenting industrial markets. Business buyers segment geographically or by benefits sought, user status, usage rate, loyalty status, readiness state and attitudes. The main difference is that consumer segments always much larger in terms of number of potential buyers. Market segmentation and its impact on customer satisfaction. Consumer and business markets cannot be segmented on the bases of same variables because of their inherent differences. Describe the bases commonly used to segment consumer. Variation depends upon different factors like wants, resources, buying attitude, locations, and buying practices. Positioning is the unifying element of each marketing mix because it expresses the offerings.
Decision making, market segmentation, benefits of market segmentation, philosophies of market segmentation, bases for market segmentation create new markets for their. The importance of marketing segmentation gillian martin, kaplan university, usa. Market segmentation wharton faculty platform university of. The impact of quality management systems service in strategy is to identify the needs of specific customer groups, select the distribution format. Bases for segmenting organizationalindustrial markets in. Our focus is on consumer markets rather than business markets, but most of the following concepts also.
Segmenting consumer markets geographic segmentation dividing a market into different geographical units such as nations, states, regions, counties, cities, or. Products and services, presented in markets, are of very big variety. Many of the same bases used to segment consumer markets are also used to segment b2b markets. In this article we will discuss about the bases of market segmentation. 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. The most important part of the global segmentation process for a marketing manager to avoid targeting issues and to sustain a marketing mix in a global economy is to first select your. Market segmentation is the actual process of identifying segments of the market and the. Bases for segmentation segmentation of consumer based on factors like climate zone, continents country, region, state, district, and urbanrural area, constitutes geographic. Marketer will identify the customer need and want then only decide if it is practical to develop marketing mix to satisfy those wants. Our focus is on consumer markets rather than business markets, but most of the following concepts also apply to b2b. The four bases for segmenting consumer market are as follows. Well address the development of market segmentation, how it serves as the foundation of a marketing strategy, the types of segmentation to consider and the process of developing a market segmentation strategy. The definition of market segmentation, why it matters and the nuts and bolts of how to do it will be presented within this blue paper.
Instead of offering a services or products to everyone, organizations tailor each product and marketing tactic to a specific target markets. Segmenting the chinese consumer goods market a hybrid. Customer segmentation also consumer segmentation or client segmentation is unavoidable when companies want to reach the target markets. Customer type customer type segmentation is used when an n organization need to influence a certain consumer type. The basic approach to segmentation, targeting and positioning does not differ greatly between consumer and organizational markets. Segmenting consumer markets is generally much simpler and easier than segmenting industrial markets. Some of the major bases for market segmentation are as follows.
Objective 72 list and discuss the major bases for segmenting consumer and business markets. May 03, 2014 lamb, hair, mcdaniel chapter 8 segmenting and targeting markets 201220 2. A new approach to country segmentation utilizing multinational diffusion patterns country segmentation has been proposed to assist in marketing strategy decisions for international. Bases for segmenting consumer markets segmentation variables. Develop strong positions in spealized market segment.
This is evident from observation and from the proliferation of popular books describing the heterogeneity of local and global markets. Market segmentation meaning, basis and types of segmentation. Hampton inns has opened a chain of smallerformat motels in. 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. Segmenting consumers enables marketing teams to stretch budgets and make the. Segmenting consumer markets from principles of marketing by. Important in 1 determining how well a brand may satisfy need.
Lamb, hair, mcdaniel chapter 8 segmenting and targeting markets 201220 2. 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. So, this book will present the results of a newer and better designed segmentation study of chinese consumer goods markets. Marketers utilise this process due to the prevalence of mature markets, greater diversity in customer needs, and its ability to provide focus for an organisations marketing strategy and. Consumer can be segmented along several factors, including demographics, lifestyles, usage behavior and others. Market segmentation can be defined as the process of dividing a market into different homogeneous groups of consumers.
Segmenting consumer and business markets bases for segmenting business markets business buyers seek different benefit bundles based on their stage in the purchase decision process. One market segment is totally distinct from the other segment. Market segmentation pp 2221 objective 73 explain how companies identify attractive. This study guide is a comprehensive discussion along with many examples of the key aspects of. Customer segmentation is imperative when trying to send messages to a target market. Decision making, market segmentation, benefits of market segmentation, philosophies of market segmentation, bases for market segmentation create new markets for their products. 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. Demographic segmentation divides the markets into groups based on variables such as age, gender, family size, income, occupation, education, religion, race and nationality. Niche marketing enables marketers to craft and deliver messages specifically for the target audience. Pdf on jan 1, 1994, jerry wind and others published segmenting industrial markets find, read and cite all the research you need on researchgate. Five bases are commonly used for segmenting consumer markets. In order for companies to succeed in selling their. A large number of variables are used to segment a consumer market. Market definition is a multidimensional process michael w.
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