Definition of Market segmentation:
The process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment.
Few companies are big enough to supply the needs of an entire market; most must breakdown the total demand into segments and choose those that the company is best equipped to handle.
Four basic factors that affect market segmentation are clear identification of the segment, measurability of its effective size, its accessibility through promotional efforts, and its appropriateness to the policies and resources of the company.
The four basic market segmentation-strategies are based on behavioral, demographic, psychographic, and geographical differences.
Companies can generally use three criteria to identify different market segments:.
Market segmentation is a marketing term that refers to aggregating prospective buyers into groups or segments with common needs and who respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
How to use Market segmentation in a sentence?
- Market segmentation seeks to identify targeted groups of consumers to tailor products and branding in a way that is attractive to the group.
- Market segmentation allows a company to focus its resources on efforts that can be the most profitable.
- Markets can be segmented in several ways such as geographically, demographically, or behaviorally.
- I was doing my best to identify my target market, as an entrepreneur, and then I realized it was optimal if I engage in market segmentation .
- It is very important fora large company such as Apple to use market segmentation in order to properly define the profits garnered from their many products.
- Using market segmentation , the stationery company was able to determine that there was very little publicity directed toward women over 50 years old, and was able to adjust their marketing strategy accordingly.
Meaning of Market segmentation & Market segmentation Definition