what is segmentation? ? ? ?

BY: MUSTQEEM-UR-RASOOL

• 
•  The STP Marketing Process
•  Market Segmentation
•  Segmentation Bases
•  Segment Profiles
•  Business Segmentation
•  Target Markets
•  Product Positioning
•  Repositioning
•  Perceptual Maps
•  About
• Blog
•  Segmentation Examples

 The STP Marketing Process — What is the STP Process?— The Basic STP Process— The Full STP Process Market Segmentation — What is Market Segmentation?— Reasons to Use Market Segmentation—  Criteria for Effective Market Segmentation — — Using the Criteria for Effective Segmentation— Main Tools Used—  Defining Markets — — Understanding Markets— —  Markets, sub-markets and product-markets — — — Examples of Sub-markets and Product-markets— A Step-by-step Guide to Segmenting a Market Segmentation Bases — Choice of Consumer Segmentation Bases— Market Segmentation Examples— Advantages and limitations of the different segmentation bases— Different Segmentation Approaches? Segment Profiles — Understanding Segment Profiles— Segment Profile Sections— Segment Profile Examples— Segment Nicknames— Brand Personas Business Segmentation — Business Market Segmentation Bases— Market segmentation examples Target Markets — Overview of Target Markets— Evaluating Target Markets—  Selecting Target Markets — — Selecting a Target Market Example—  How many target markets? — — Differentiated or Concentrated Marketing?—  Niche Marketing — — Niche Marketing Examples— — One-to-one Marketing— The Challenge of Mass Marketing Product Positioning — Introduction to Positioning— Why Positioning is Used—  Positioning Categories — — Positioning Category Examples— Positioning Examples— Over and Under Positioning— Positioning and the Marketing Mix Repositioning — What is Repositioning?— Why is repositioning used?— Challenges of Repositioning— Repositioning Examples— Repositioning versus Introducing a New Brand Perceptual Maps —  Understanding Perceptual Maps — — Inputs to Perceptual Maps— — Determinant Attributes— — Perception is Reality— Benefits of Perceptual Maps—  Interpreting Perceptual Maps — — Interpreting Perceptual Maps Example—  Points-of-Difference and Points of Parity — — Points-of-Difference and Points-of-Parity Examples—  A Step-by-step Guide to Constructing a Perceptual Map — — Create Your Own Perceptual Map— Free Perceptual Map Template About — Resources— FAQ’s— AdSense Privacy PolicyBlog Segmentation Examples — Sports shoes— A bank— Grocery shoppers— Retailers— Breakfast foods— Banking— Cars— Car insurance— Charities— Drinks— Fast food— Fitness centers— A list of segment ideas

Market Segmentation » What is Market Segmentation?

What is Market Segmentation?

 

What is market segmentation?

Market segmentation is the first step in defining and selecting a target market to pursue. Basically, market segmentation is the process of splitting an overall market into two or more groups of consumers. Each group (or market segment) should be similar in terms of certain characteristics or product needs.

Definitions of market segmentation

The concept of market segmentation was first identified by Smith back in the 1950s. He was one of the first to recognize the importance of market segmentation, as shown in the following quote:

• “Market segmentation is based upon developments on the demand side of the market and represents a rational and more precise adjustment of product and marketing effort to consumer or user requirements.” (Smith, 1956)

To clarify this statement in simple language, he basically saw market segmentation being an important tool to enable marketers to better meet customer needs. Since that time, market segmentation has become a widely accepted and used marketing approach. Here are some more recent definitions of what is market segmentation:

• “Market segmentation is the process of splitting customers, or potential customers, in a market into different groups, or segments, within which customers share a similar level of interest in the same, or comparable, set of needs satisfied by a distinct marketing proposition” (McDonald & Dunbar, 2004)

• “Market segmentation involves aggregating prospective buyers into groups that (1) have common needs and (2) will respond similarly to a market action.” (Kerin, 2011)

Both of these definitions highlight that market segmentation is designed to split customers into similar groups. They also indicate that market segmentation is simply a step in the process of identifying and evaluating potential target markets, which is best achieved by breaking the overall market into smaller, related groups of consumers. Therefore, an alternate definition provided by this market segmentation study guide is:

• Market segmentation is the process of splitting a market into smaller groups with similar product needs or identifiable characteristics, for the purpose of selecting appropriate target markets.

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