The basis of market segmentation
Tell us how we can improve this post? Marketers establish the basis to segment the market. Influence of Reference Groups: A reference group may be defined as a group of people who influence a persons attitudes, values and behaviour.
The manufacturer may want to first start in the Southern region and concentrate on Karnataka, Bengaluru North Region.
Market segmentation definition and examples
Lifestyle analysis provides marketers with a broad view of consumers because it segments the markets into groups on the basis of activities, interests, beliefs and opinions. Koko Krunch, Nesquick: Chocolate milk who want to get taste of chocolate. Demographic Segmentation: Consumers in a market have different demographic characteristics such as age, gender, income, religion, education, and occupation. Measurability: The segment variables must be capable of measuring. As compared to men, women tend to go for more detailed information processing. Time consuming and expensive process: Segmenting markets involves lot of time, effort, and money on the part of the firm. Some people are well informed and are interested to buy the product. Automobile marketers commonly use income-based segmentation to divide their market and sell different variants according to affordability. Nestle Ltd selected their target market into two market coverage strategies: 25 Undifferentiated: Nestl has offered several products such as Nescafe 3 in 1 Maggi noodles, and Kit Kat to the people of the whole Bangladesh without differentiating the market segment. They endow their products with brand personality that matches to consumer personalities.They can budget funds to different segments depending upon their buying response. Accordingly, marketing strategies must be designed depending upon their likes, dislikes, moods, preferences, and fashions and buying habits.
Through internal research and development at Nestl there have also been significant advances in the environmental impact of refrigerants and packaging.
But market segmentation need not be a purely adaptive strategy: The process of market segmentation can also consist of the selection of those segments for which a firm might be particularly well suited to serve by having competitive advantages relative to competitors in the segment, reducing the cost of adaptation in order to gain a niche.
This method of segmentation is useful when variations in consumers occur with the change of coordinates. In other words, potential customers characteristics and wants must be heterogeneous i.
Unlike objective demographic variables, behavioural variables tend to be subjective constructs. The author proposes an approach whereby market segments are delineated first on the basis of factors with a causal relationship to future purchase behavior.