Market segmentation is a technique of creating various segments of the universe. Segmentation is one of the basic marketing strategies, which is helpful for business research reports. Segmentation helps you identify key attributes about the customers, their behavior and various customer groups in your target market. When the population or market is divided into various relatively smaller segments, it gives a proper direction to the entire marketing campaign. Consumer opinion holds the key to success and growth of a business. Industry analysis provides a strong platform to the customers who are looking to launch a new product or revive their existing product.
Market segmentation Techniques
Although segmentation of the market is a very useful practice, it has to be done in the right way. There is a distinct difference between good and bad market segmentation. Good market segmentation provides strong direction about the customer groups who are likely or unlikely to respond to certain products. Bad segmentation on the other hand proves to be waste of time, money and resources for both the business owners and market research firm.
Segments of the market have to be big enough to draw clear attention, but not so big, that they may ignore the basic requirement of the research project. Rather than size, segments have to be bigger in potential profitability and customer responses. There are seven rules of market segmentation that help your business analysis project. These rules highlight the measurability, accessibility, homogeneity, heterogeneity, substantiality practicality and responsiveness of these segments. Many things depend on these seven pointers for segmentation.
Apart from the size, market segments should be accessible and within easy reach. It increases effectiveness of the analysis and helps the researchers to collect the information from various segments, at once. Segmentation should be based either on the similarities or differences of opinion, shopping, pattern, budget and other such factors. When you divide customer groups based on these factors, you can easily conclude the results of your marketing research project.
Groups or segments of the market should be responsive and alert. There is nothing like finding market segments with customers who are excited about industry analysis. Various tools and techniques of industry analysis can be used, if you find segments with responsive customers. Keeping a practical approach is the basic need of business research. You have to be practical while preparing market segments. Each segment of the market should be a distinctive mixture.
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