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Market segmentation producer or how to segment the market:
1. Survey stage: this is divided into two parts, (1) focus group discussions and in depth interviews with a view to get an insight into customer motivation, attitudes and behaviour and based on this insight developing a which is administered to a sample group of the customer. The objectives of this is to collect data on
A. Attributes sought in a product and their priority ratings,
B. Brand awareness and rating of the different brands,
C. Product uses patterns
D. Customer attitudes towards the generic product and product category itself
E. Media habits of sample respondents.
2. Analysis stage: after collecting the data, it is analyzed by the factor analysis. This is used to identify the factors that differentiate customer habits. The marketer can give used to cluster customers into maximally different groups.
3. Profiting stage: in this stage each cluster is profiled in terms of the media habits, attributes, and behaviour and consumption habits. The marketer can give each segment a name based on a dominant distinguishing characteristics.
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