What is the role, basis and standard of market segmentation?

Role:

1, conducive to enterprises to explore and develop new market opportunities.

2, is conducive to the enterprise will be the rational use of resources to the target market.

3, conducive to the development of applicable distribution strategy.

4, is conducive to adjust the marketing strategy of the market.

Basis and criteria:

Market segmentation is based on the differences in consumer demand and purchasing habits, the overall market is divided into different consumer groups market segmentation process, each consumer group is known as a sub-segment of the market (or sub-markets, sub-markets, small markets), for example, the apparel market can be subdivided into: traditional clothing, fashionable clothing, economic clothing, luxury clothing and other sub-markets. market.

Market segmentation can help companies find market opportunities, grasp the characteristics of the target market, so as to formulate marketing strategies applicable to market segments, in order to improve the effectiveness of corporate marketing activities, therefore, has an extremely important significance to the marketing of enterprises.

Expanded Information

Whether the role of market segmentation can be given full play to, often depends on the way the enterprise on the whole market division, different enterprises, different marketing environment, market segmentation standards often differ. However, as a general standard for market segmentation, the following factors should be considered:

1, geographic factors: that is, in accordance with the natural environment of the geographic location of consumers to segment the market, including: country, region, ethnicity, city size, population density, topography, climate, natural resources, and so on. These factors have an important impact on consumer demand, lifestyle, customs and habits.

2, demographic factors: that is, according to a variety of demographic variables to break down the market, including: age, marriage, occupation income, education, family life cycle, nationality, religion, social class, etc..

3, psychological factors: that is, in accordance with the psychological characteristics of consumers segmentation of the market, including: personality, purchase motivation, life style, the pursuit of interests.

4, behavioral factors: that is, in accordance with the consumer's purchasing behavior segmentation of the market, including: the degree of consumer access to the market, the frequency of use, the degree of preference, brand loyalty and so on.

Baidu Encyclopedia - Market Segmentation