Mazda segmentation

For example a shop based in South London is unlikely to get a large number of customers from North England. In this instance the shop will have to reassess its chosen segment or think about solutions to help accessibility such as selling to customers through the internet. If is is too large, it will be difficult to create marketing activities to suit all of the groups included in the segment.

A firm also needs to know how product sales are growing in the chosen segment. If you can not measure the growth rate, it will be difficult to assess whether your chosen segment is profitable.

Twitter 0 Market segmentation is practised by most businesses in one form or another, as a way of streamlining their marketing strategy by dividing broad-based target markets into specific groups of consumers, and devising marketing methods that will appeal to each group. Actionability of Segment Even if all of the criteria listed above are satisfied a segment is unsuitable unless the business has the resources to cater for the needs of the segment.

Actionable: The market segment must have practical value — its characteristics must provide supporting data for a marketing position or sales approach, and this in turn must have outcomes that are easily quantified, ideally in relation to the existing measurements of the market segment as defined by initial market research.

Segment suitability also includes the size of the segment.

Psychographic segmentation

Measurability of Segment Before embarking on a sales strategy it is important to know the size of existing sales in that segment. If you can not measure the growth rate, it will be difficult to assess whether your chosen segment is profitable. Identifying viable segments Clearly defined market segmentation criteria not only ensure that customers are more likely to identify — and purchase — the product that is right for them; it also minimises wastage of resources, reducing the time spent marketing the wrong products to the wrong customers. Actionability of Segment Even if all of the criteria listed above are satisfied a segment is unsuitable unless the business has the resources to cater for the needs of the segment. Segment suitability also includes the size of the segment. Post is also a challenge unless you can find out where people making up your market segment live. Substantial: Simply put, there would be no point in wasting marketing budget on a market segment that is insufficiently large, or has negligible spending power. A viable market segment is usually a homogenous group with clearly defined characteristics such as age group, socio-economic background and brand perception. Otherwise there is a risk that market activities will "spill over" into different segments. Longevity is also important here: no market segmentation expert would recommend focussing on an unstable customer group that is likely to disperse, or change beyond recognition within a year or two. Conclusion An effective segment is defined as, measurable, accessible, actionable and suitable for the firm. However if target customers do not use these things it will be difficult to communicate with them.

A market segment should be: Measurable: Market segments are usually measured in terms of sales value or volume i. For example if married and unmarried men behave similarly when purchasing shoes, there is little value in placing them in different segments.

market segmentation pdf

Accessibility of Segment Accessibility includes communicating with your customers; communication is usually through the internet, TV, radio. Back To The Top.

Longevity is also important here: no market segmentation expert would recommend focussing on an unstable customer group that is likely to disperse, or change beyond recognition within a year or two.

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Market segmentation criteria