Segmentation

01May09

Market Segmentation involves aggregating prospective buyers into groups that have two key characteristics.

1. have common needs

2. respond similarly to a marketing action.

 

Step Segmentation Process:

1. Group potential buyers into segment

2. Group products to be sold into categories

3. Develop market-products grid and estimated size of market

 

Two ways to segment Markets:

Based on Customer Characteristics – Geographic, Demographic, Psychographic variables

Based on Buying Situations – Usage, Benefits Sought, Frequency.

 

Market Product Grid:

Marketing Synergies run horizontally across for each market segment.

Product Synergies run vertically down for each product

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