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    Market Segmentation

    Category: Business
    Date: 16 January 2009
    It is obvious enough, that different consumers wish to get the different goods. To satisfy these various requirements, the organisations-manufacturers and the organisations-sellers aspire to reveal groups of consumers which most likely will positively react to offered products and focus the marketing activity first of all on these groups of consumers.
    Here pertinently to recollect known law (the law 80:20), based on statistical researches and according to which 20 % of consumers buy 80 % of the goods of the certain stamp, representing the generalised group of target consumers, owing to the certain reasons (what? - It is necessary to find out) focused on the given goods. The others of 80 % of consumers get 20 % of the goods of the given stamp and have no accurate choice, they most likely make casual purchases. Manufacturers aspire to focus the products and marketing activity on these of 20 % of consumers («shooting on the purposes»), instead of on all market in whole («shooting on the areas»). Such strategy of market activity appears more effective.
    Market segmentation consists in division of the market into accurate groups of buyers (market segments) which can demand different products and which it is necessary to make different marketing efforts.
    The market segment is the group of consumers characterised by the same reaction on offered product and on a set of marketing stimulus.
    The main arguments in favour of segmentation carrying out is the following:
    1. The best understanding not only needs of consumers, but also that they from themselves represent (their personal characteristics, character of behaviour in the market, etc.) is provided.
    2. The best understanding of the nature of competitive struggle in the concrete markets is provided. Proceeding from knowledge of the given circumstances it is easier to choose market segments for their development and to define, what characteristics products for a gain of advantages in competitive struggle should possess.
    3. Possibility to concentrate the limited resources on the most favourable directions of their use Is represented.
    4. By working out of plans of marketing activity features of separate market segments therefore high degree of orientation of tools of marketing activity on requirements of concrete market segments is reached are considered.
    The first step at segmentation carrying out is the choice of criteria of segmentation. Thus it is necessary to spend distinction between criteria of segmentation of the markets of consumer goods, production of industrial purpose, services, etc. Though at carrying out of segmentation of the markets of the different goods can partially be used and identical criteria, for example consumption volume.
    So, at segmentation of the market of consumer goods such criteria, as are used: geographical, demographic, social and economic, psychographic, behavioural, etc.
    Geographical segmentation - division of the market into various geographical units: the countries, regions, areas, cities etc.
    Demographic segmentation - division of the market into groups depending on such characteristics of consumers, as: an age, sex, the marital status, family life cycle, religion, a nationality and race.
    Social and economic segmentation assumes division of consumers on level of incomes, an employment sort, an educational level.
    Psychographic segmentation - division of the market into various groups depending on a social class, vital style or personal characteristics of consumers.
    Vital style characterises that, on what consumers spend time as have a rest, in what houses and apartments they live, that from itself represents an interior of their dwellings that their hobby, etc. For example is, manufacturers of cigarettes segment smokers on inveterate, usual and especially caring about the health.
    Personal characteristics of consumers are more likely used as criteria of segmentation in a case when the given product is similar to products of competitors and individual inquiries of consumers do not come to light at application of other criteria of segmentation. For example, in due time buyers of models "Ford" have been characterised as « independent, impulsive, inclined to changes and. However personal character traits difficultly precisely to measure, as their revealing is usually carried out in the medical purposes, instead of with a view of market segmentation.
    Because it is more difficult to measure psychographic criteria in comparison with other criteria of segmentation, them, frequently, use for the best understanding of the consumers prosegmented by means of other criteria.
    Behavioural segmentation assumes division of the market into groups depending on such characteristics of consumers, as: level of knowledge, relations, character of use of a product or reaction to it.
    Thus the relation is understood as steady favorable or adverse estimations, feelings and propensities to actions in relation to certain subjects and ideas; it strongly influences behaviour of buyers.
    According to it allocate segmentation: on circumstances of application, on the basis of benefits, on the basis of the status of the user, on the basis of intensity of consumption, on the basis of loyalty degree, on the basis of a stage of readiness of the buyer to purchase fulfilment.
    Segmentation on circumstances of application - division of the market into groups according to circumstances, occasions of occurrence of idea, fulfilment of purchase or product use. For example, abroad orange juice, as a rule, is consumed at breakfast. However manufacturers of oranges try to expand demand for oranges, stimulating consumption of orange juice during other time of days.
    Segmentation on the basis of benefits - division of the market into groups depending on benefits, advantage which are searched by the consumer in a product. For example, smoking for one category of consumers is one of the main vital needs, for others - only an element of certain image.
    The status of the user characterises degree of a regularity of use of any product its users who share on not using a product, the former users, potential users, on users-beginners and on regular users. For example, it is possible to focus the market activity on transformation of users-beginners into regular users. The different enterprises focus the activity on different groups of users, besides the last demand different methods of advancement of a product.
    Intensity of consumption - an indicator on which basis the markets are segmented on groups of weak, moderate and active consumers of certain products. It is obvious, that it is more favourable to serve one market segment consisting of considerable number of active consumers, than some small segments of weak consumers.
    Loyalty degree characterises degree of loyalty, adherence of the consumer to the certain stamp of a product, is usually measured by number of repeated purchases of a product of the given stamp.
    The stage of readiness of the buyer - the characteristic according to which buyers classify on unaware and informed on a product, on well informed about him, on interested in him, on wishing it to buy and on not intended it to buy. The marketing plan is developed taking into account distribution of buyers on different stages of their readiness for purchasing.



    Tags: Business, dwi, lawyer, law, loan, mortgage, credit report, lawsuit, Economy, price Business

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