In marketing, there is such a thing as market segmentation. This is a division of the studied contingent into separate features. For example, needs, salary level, age, region, priorities, habits. All these data allow the manufacturer to decide whether it is profitable for him to sell his goods in the area in question.
The purpose of market segmentation is to identify similar needs for services or products for each of the selected groups of customers. The decision of the manufacturer to focus on the creation of a particular type of product depends on the result.
The following signs of market segmentation are :
- geographical: reflect the location of the area, population density and climate;
- demographic: characterize gender, age, number of people in a family .;
- psychographic: describe personality types, temperaments and lifestyle (does a person have a hobby, is he authoritarian or does everything, prefers to travel, or doesn't like moving);
- socio-economic: determine the position of a person in society, his status, income and education;
- behavioral market segmentation is:
a) the person’s attitude to making a purchase (regular or for a special reason);
b) the status of the buyer: the former consumer, potential buyer, new customer, regular user never purchased this type of product ;
c) consumption intensity: weak, moderate and active.
d) the level of commitment to the product: unconditional, tolerant, inconsistent, random;
e) desired benefit: quality, service, profitability;
e) level of need: high, medium, low;
g) attitude to the product: enthusiastic, positive, neutral, negative, hostile.
Marketers can research not only a group of consumers, but also carry out segmentation of the goods market. This procedure is needed in order to determine the most necessary products on the market, analyze the dynamics of its sales, assess the direction of the assortment and identify a strategy to increase competitiveness. There are seven categories of segmentation:
1. By product group (for example, when researching the home appliance market, this area will include kettles, washing machines, irons, televisions, etc.).
2. By purpose, features and functions of the product - the most common form. For example, to segment chocolate, you need to characterize:
- color: dark, milky, white;
- Appearance: bar or tile;
- filler: with nuts, with raisins, clean.
The more this procedure is carried out, the easier it is to find a product niche.
3. By price level: low, medium, high.
4. By manufacturer - allows you to identify all market participants, to identify the impact and level of competitors. Segmentation example: regional, by brand, by manufacturer name.
5. By packaging: determines the most popular type of container (disposable, case, protected from opening).
6. By the volume and size of the goods: reveals the most common and convenient type of purchase for consumers. For example, segmentation of beer bottles: 0.5 L, 1.5 L, 3 L.
7. The combined direction, including several others in the study at once.
Market segmentation is the best way to identify a group of consumers, and product segmentation is the identification of the most demanded type of product or service.