What is consumer market segmentation

Question 1: What is the difference between market segmentation and consumer segmentation? Market segmentation---is the process by which a company divides the entire market into different groups of consumers according to their different needs. Its objective basis is the heterogeneity of consumer demand. The main basis for market segmentation is the customer groups with the same demand in the heterogeneous market, which is to seek homogeneity in the heterogeneous market. The goal of market segmentation is to aggregate, that is, in the market with different needs to the same needs of consumers aggregated together.

Consumer segmentation - according to the social class of consumers, lifestyle and personality characteristics of the market to be subdivided, in the same geographic segments of the market may show very different psychological characteristics. Companies segment the consumer market according to the psychological characteristics of consumers.

Question 2: What are the bases for consumer market segmentation? 5 points Basis for consumer market segmentation:

Geographic segmentation: country, region, urban, rural, climate, terrain

Demographic segmentation: age, gender, occupation, income, education, family size, family type, family life cycle, nationality, ethnicity, religion, social class

Psychological segmentation: social class, lifestyle, personality

Behavioral segmentation: timing, benefit-seeking, user status, product usage, loyalty, purchase readiness stage, attitude.

Question 3: What does segmentation mean? Segmented market, also known as market segmentation, refers to marketers through market research, based on consumer needs and desires, purchasing behavior and purchasing habits and other differences, the market for a product as a whole is divided into a number of consumer groups of the market classification process. Each consumer group is a market segment, and each market segment is a group of consumers with similar demand tendencies.

Question 4: What are the bases for consumer market segmentation? (A) consumer market segmentation basis?

As mentioned earlier, the overall market for a product can be segmented because of the variability in consumer or user needs. Caused by the differences in consumer demand for many variables, in practice, the enterprise is generally a combination of relevant variables to segment the market, rather than a single use of a variable. To summarize, there are four main categories of variables for segmenting the consumer market, namely, geographic, demographic, psychological, and behavioral variables. Based on these variables to segment the market to produce geographic segmentation, demographic segmentation, psychological segmentation and behavioral segmentation of the four basic forms of market segmentation.

1. Segmentation by geographic variables? Segment the market according to the geographic location and natural environment in which consumers are located, for example, the overall market is divided into different sub-markets based on differences in country, region, city size, climate, population density, topography and landscape. Geographic variables as the basis for market segmentation, because consumers in different geographic environments often have different needs and preferences for the same type of product, they will have different responses to the marketing strategies and measures taken by enterprises. For example, in China's southern coastal provinces, some seafood is regarded as a delicacy, while many consumers in the interior feel that the taste is ordinary. For example, due to differences in living environments, urban residents and rural consumers have very different needs for interior decorating supplies. Geographic variables are easy to identify and are important factors that should be taken into account in market segmentation, but consumers in the same geographic location will still have very different needs. For example, in some of China's major cities, such as Beijing, Shanghai, mobile population of more than a million, these mobile population itself constitutes a large market, it is clear that this market has many different from the resident population market demand characteristics. Therefore, a simple geographic characteristics to distinguish the market, not necessarily a true reflection of consumer demand **** sex and differences, enterprises in the selection of the target market, but also need to be combined with other segmentation variables to be considered comprehensively.

2. Segment the market by demographic variables? Segmentation is based on demographic variables such as age, gender, family size, family life cycle, income, occupation, education level, religion, race, nationality, etc. The market segmentation is based on the demographic variables such as age, gender, family size, family life cycle, income, occupation, education level, religion, race, nationality, etc. Consumer needs and preferences are closely related to demographic variables. For example, only consumers with high income levels are likely to be regular buyers of high-end clothing, expensive cosmetics, and fine jewelry. Demographic variables are easy to measure and the data are relatively easy to obtain, which is an important reason why companies often use them as the basis for market segmentation.

1) Gender. Due to physiological differences, men and women have very different product needs and preferences, such as in clothing, hairstyles, and necessities of life. Some automakers, like those in the United States, have been catering to men's requirements in designing cars in the past. Now, as more and more women are joining the workforce and owning their own cars, these automakers are researching market opportunities to design cars with features that appeal to female consumers.?

2) Age. Consumers of different ages have different demand characteristics, such as the needs of young people for clothing, and the needs of the elderly differ greatly. Young people need brightly colored, fashionable clothing, the elderly need dignified and elegant clothing.

3) Income. High-income consumers and low-income consumers will be different in product selection, leisure time arrangements, social intercourse and interaction. For example, the same travel, in the choice of transportation and accommodation, high-income and low-income people will be very different. Because income is a direct and important factor causing differences in demand, it is quite common to segment the market according to income in areas such as clothing, cosmetics, and travel services.

4) Occupation and Education. Refers to the different occupations of consumers, different education and the resulting differences in demand segmentation. For example, farmers buy bicycles prefer heavy bicycles, while students, teachers like light, beautiful style of bicycles; Another example, due to the difference in the level of education of consumers caused by the aesthetic has a great difference, such as different consumers on the varieties of home furnishing supplies, color and so on will have different preferences.

5) Family life cycle. A family, according to age, marriage and child status, can be divided into seven stages. In different stages , the family purchasing power, family members of the interest and preference for goods will have a greater difference. Single stage: young, single, almost no financial burden, the leader of new consumer concepts, entertainment-oriented purchases. Newlywed stage: young couples, childless, better off financially than in the recent future. Strong purchasing power, for durable goods, big-ticket items ...... >>

Question 5: Market segmentation criteria, which can be divided into consumer market segmentation criteria. The main elements of industrial market segmentation criteria are () Consumer Market Segmentation

Typically, firms use a combination of relevant variables to segment a market, rather than a single variable. To summarize, there are four main categories of variables for segmenting the consumer market: geographic, demographic, psychological, and behavioral. With these variables as the basis for market segmentation to produce geographic segmentation, demographic segmentation, psychological segmentation and behavioral segmentation of the four basic forms of market segmentation.

① Geographic segmentation. That is, according to the geographical location of consumers, the natural environment to segment the market. For example, the overall market is divided into different sub-markets based on differences in country, region, city size, climate, population density, topography and landscape. Geographic variables can be used as a basis for market segmentation, because consumers in different geographic environments for the same type of product often have different needs and preferences, they will have a different response to the marketing strategies and measures taken by the enterprise.

② demographic variables by market segmentation. That is, according to demographic variables, such as age, gender, family size, family life cycle, income, occupation, education, religion, race, nationality, etc. as the basis for market segmentation.

Gender: Due to physiological differences, men and women have very different product needs and preferences, such as in clothing, hairstyles, and necessities.

Age: consumers of different ages have different needs, for example, the needs of young people on the demand for clothing and the needs of the elderly are different, young people need brightly colored, fashionable clothing, the elderly need to be dignified and elegant clothing.

Income: Low-income and high-income consumers are different in product selection, leisure time arrangements, social communication and interaction.

Occupation and education: The different occupations and education of consumers will also lead to different products. For example, farmers prefer heavy-duty bicycles, while students and teachers prefer lightweight and attractive bicycles.

Family life cycle: a family, according to age, marriage and child status, can be divided into five stages: single, newly married, full nest, empty nest and lonely. In different stages, the purchasing power of the family, and the interest and preference of family members in commodities can also vary greatly.

③ Segment the market by psychological variables. That is, the market is segmented according to the psychological factors such as the social class, lifestyle, and personality traits of the buyers.

Social class: refers to a group with relative homogeneity and persistence in a particular society. Members in the same class have similar values, interests and behaviors, while members of different classes have different needs for different products. Identifying the different characteristics of consumers in different social classes will provide an important basis for market segmentation of many products.

Lifestyle: The different lifestyles that people pursue will also affect their choice of products. For example, some of the pursuit of trendy fashion, some of the pursuit of quiet, simple, some of the pursuit of ***, adventure, some of the pursuit of stability, comfort. Some clothing manufacturers in the West design different clothes for "simple women", "fashionable women" and "manly women"; tobacco companies target "challenging smokers". Tobacco companies have introduced different brands of cigarettes for "challenging smokers", "easy-going smokers" and "cautious smokers", all of which are based on lifestyle segmentation.

Personality: refers to the stable psychological tendencies and traits that cause a person to respond to his or her environment in a relatively consistent and ongoing manner. Generally, personality is expressed through character traits such as assertiveness, autonomy, dominance, submissiveness, conservatism, and adaptability. Therefore, personality can be categorized according to these character traits, thus providing a basis for business segmentation. In Western countries, for products such as cosmetics, cigarettes, beer, insurance and so on, some companies have achieved success in market segmentation based on personality traits.

④ Segmentation by behavioral variables. That is, buyers are divided into different groups based on their knowledge of the product, attitude, use and reaction. Many believe that behavioral variables reflect more directly the differences in consumer needs and are therefore the best starting point for market segmentation.

Industrial Market Segmentation

Many of the criteria used to segment consumer markets can also be used to segment producer markets. For example, segmentation is based on variables such as geography, pursued interests, and utilization. However, because of the differences in purchasing motivations and behaviors between producers and consumers, new criteria can be used to segment producer markets in addition to the consumer market segmentation criteria described above.

①User size. In the producer market, some users buy a lot, while others buy a small amount. Companies should segment the market according to the size of the users and develop different marketing mixes depending on the size of the users or customers. Example ...... >>

Question 6: What are the benefits of market segmentation Market segmentation (market segmentation) is a very important concept in marketing, the market mainstream business management education, such as MBA, EMBA and the CEO must read 12 and so on are on the concept of market segmentation to give different degrees of attention to the spear.

Introduction

The concept of market segmentation is the American marketer Wendell R. Smith (Wendell R. Smith). Smith (Wendell R. Smith) proposed in 1956.

According to the consumer desire and demand for the overall market due to the size of the enterprise is difficult to serve divided into a number of sub-markets with the same characteristics of the ***, in the same segmentation of the market is known as the target group of consumers, relative to the mass market of these target sub-markets of the consumer group is a niche.

It is the end of the Second World War, the United States, many products market by the seller's market into a buyer's market, a new market form of enterprise marketing ideas and marketing strategy of the new development, but also the implementation of the enterprise to the consumer as the center of the modern marketing concept of the inevitable product.

Meaning

The famous scholar Lan Xiaohua believes that there are two extreme ways of market segmentation: complete market segmentation and no market segmentation; there is a series of transition between the two extremes of the segmentation mode.

1. Complete Market Segmentation

The so-called complete segmentation is that every consumer in the market constitutes an independent sub-market, and enterprises produce different products for each consumer according to their different needs. Theoretically, complete segmentation is only possible for small markets with a very small number of consumers, and it is not economical for companies to do so. Nevertheless, the complete segmentation in some industries, such as aircraft manufacturing industry or a large market, and in recent years began to popularize the customized marketing is the result of the complete segmentation of the market.

2. No Market Segmentation

No market segmentation refers to the market in which every consumer's needs are exactly the same, or the enterprise intentionally ignores the differences in the needs of consumers between each other, and does not segment the market.

In terms of the consumer market, segmentation variables, summarized in the main geographic environment factors, demographic factors, consumer psychology factors, consumer behavior factors, consumer benefit factors. There are five basic forms of market segmentation: geographic segmentation, demographic segmentation, psychological segmentation, behavioral segmentation, and benefit segmentation.

Foundations

Difference in Customer Needs

Difference in customer needs means that the needs are not the same between different customers. In the market, consumers always want to buy products according to their own unique needs, we can divide the market into "homogeneous needs" and "heterogeneous needs" according to the differences in consumer demand.

Homogeneous demand refers to the fact that there is no need for market segmentation because the differences in consumer demand are very small or even negligible. Heterogeneous demand refers to the geographical location of consumers, different social environments, their own psychology and different purchase motives, resulting in the price of the product, the quality of the style of the difference in demand. This difference in demand is the basis of our market segmentation.

Similarity of customer demand

In the same geographic conditions, social environment and cultural background of the formation of people with a relatively similar outlook on life, values of the subculture group, their demand characteristics and consumption habits are generally the same. It is because of the relative homogeneity of consumer demand in some aspects of the market absolute differences in consumers can be aggregated into different groups according to certain criteria. So the absolute difference in consumer demand caused by the necessity of market segmentation, the relative homogeneity of consumer demand is to make the market segmentation has the possibility of realization.

The limited resources of enterprises

Modern enterprises are limited by their own strength, it is impossible to provide the market with products and services that can meet all the needs. In order to compete effectively, enterprises must carry out market segmentation, select the most profitable target market segments, focus on the enterprise's resources, and develop effective competitive strategies to achieve and increase competitive advantage.

1. Geographic Segmentation: It is the segmentation of the market according to geographic characteristics, including the following factors: topography, climate, transportation, urban and rural areas, administrative districts, etc.

2. Demographic Segmentation: It is the segmentation of the market according to demographic characteristics, including the following factors: age, gender, family size, income, education, social class, religious beliefs or ethnicity, etc.

3.

3. Psychological segmentation: personality or lifestyle and other variables to customer segmentation.

4. Behavioral Segmentation: Evaluation of consumer behavior and then segmentation

5. Socio-cultural Segmentation: It is the segmentation of the market according to socio-cultural characteristics, with ethnicity and religion as the main segmentation

6. User Behavioral Segmentation: It is the segmentation of the market according to individual characteristics, occupation, culture, family, personality.

1. Favorable for enterprises to explore and develop new market opportunities.

2...... >>

Question 7: What is the basis of market segmentation of consumer goods The basis of market segmentation is the objective existence of differences in demand, but there are a lot of differences, according to which to carry out segmentation, there is not an absolutely correct method or a fixed model. There are many different variables that can be adopted by industries and companies, and there are many different ways to segment in order to seek the best marketing opportunities. Factors affecting the market demand for consumer goods, that is, the variables used to segment the consumer goods market, can be summarized in four categories.

1, geographic variables

Segmentation of the market by geographic variables is to divide the market into different geographic areas, such as countries, regions, provinces and cities, the South, the North, cities, rural areas and so on. Geographic variables as the basis of consumer goods market segmentation, because geographic factors affect consumer demand and response. Due to the natural climate, traditional culture, the level of economic development and other factors, the formation of different consumer habits and preferences, and have different demand characteristics, so some products are only marketed in a few areas, some are marketed throughout the country, but the focus of each region is different.

2, demographic variables

Demographic variables are broken down by age, gender, family size, life cycle, income, occupation, literacy, religious beliefs, ethnicity, nationality, social class and other demographic variables, divided into different consumer groups.

3, psychological variables

In marketing activities, often produce this situation, that is, in the demographic factors of the same consumers among the same commodity hobby and attitude is very different, which is mainly due to the impact of psychological factors. Consumer psychology is very complex, the following on its main aspects are explained.

(1) Lifestyle. Lifestyle refers to an individual or group of specific habits of consumption, work and entertainment. People form and pursue different lifestyles, have different consumption tendencies, and need different goods.

(2) Social class.

(3) personality. Many foreign companies' marketers have used personality variables to segment the market.

(4) Preference. This refers to the degree of fondness that consumers hold for a certain brand of goods.

Psychological criteria is one of the more complex criteria in market segmentation, companies must conduct market research studies based on the different psychology of consumers, so as to obtain reliable data, which can be used to determine their target market.

4, behavioral variables

In the behavioral segmentation, according to the customer's understanding of the product, attitude, use and its response, they are divided into different groups. Many marketers believe that behavioral variables are the best starting point for market segmentation.

(1) Timing of purchase. Segmenting the market by the timing of consumer purchase and use of the product.

(2) Benefit seeking. Categorizing customers according to the different benefits they seek from a product is a very effective segmentation method.

Using the benefit segmentation method, first of all, we must understand what is the main benefit sought by consumers to buy a certain product; secondly, we must understand what consumers seeking a certain benefit are; and then we must investigate what benefits are suitable for each of the competing brands in the market, as well as what benefits are not yet satisfied.

Question 8: How to do market segmentation? Market segmentation (market segmentation) is the enterprise according to the different needs of consumers, the entire market is divided into different consumer groups of the process. Its objective basis is the heterogeneity of consumer demand. The main basis for market segmentation is the customer groups with the same demand in the heterogeneous market, which is essentially to seek homogeneity in the heterogeneous market. The goal of market segmentation is to aggregate, i.e., to aggregate consumers with the same needs in markets with different needs. This concept is put forward for the development of enterprises has an important role in promoting. Beacon headhunting experts believe that market segmentation has two extreme ways: complete market segmentation and no market segmentation; between the two extremes there are a series of transitional segmentation mode. The so-called complete market segmentation is that every consumer in the market constitutes an independent sub-market, according to each consumer's different needs for the enterprise to produce different products. Theoretically, only some small-scale, very small number of consumers in the market can be fully segmented, this practice is not economical for enterprises. Nevertheless, completely segmented in some industries, such as aircraft manufacturing industry or a large market, and in recent years began to popularize the customized marketing is the enterprise to the market for the results of complete segmentation. 2. No market segmentation No market segmentation refers to the market of each consumer demand is exactly the same, or the enterprise intentionally ignores the differences between the needs of consumers, and does not segment the market. In the case of consumer markets, segmentation variables, summarized in the main geographic environment factors, demographic factors, consumer psychology factors, consumer behavior factors, consumer benefit factors. There are then five basic forms of market segmentation: geographic segmentation, demographic segmentation, psychological segmentation, behavioral segmentation, and beneficiary segmentation. [edit]Procedures