Market Segmentation

Market Segmentation: "Dividing a market into separate groups with different needs, characteristics, or behaviour who may require separate products or marketing mixes". Market segmentation provide a method to segment or divide the market into narrow segments (by using a variety of different meaningful variables-these bases or variables are discussed at length in the chapter) that may be better reached with the resources of the marketer. Market targeting observes each of the designated segment's attractiveness and select one or more that match the objectives of the organization and marketing desires. Several coverage strategies are described and detailed.

The concept of market positioning arranges for a manufacture to occupy a visible, distinctive, and desirable place related to competition. Many methods for achieving important differentiation are illustrated and explained. The above described three steps aid the marketer in arranging the company's marketing mix effectively so that the likelihood of consumer response and competitive benefit is maximized by the organization.

Segmentation Variables

1.   Demographic segmentation
2.   Geographical segmentation
3.   Behavioural segmentation
4.   Psychographic segmentation

Requirements for Effective Segmentation