Market segmentation is the process of dividing the market according to specific criteria into uniform groups of buyers, the so-called market segments. What is the role of segmentation in customer acquisition? We invite you to read it here!
Market segmentation – what is it about and what are its objectives?
Market segmentation is the division of the market into relatively homogeneous groups of consumers, a procedure aimed at developing a product that meets the needs of customers and gains a valuable advantage in the market.
Benefits for the entrepreneur, resulting from the implementation of market segmentation, are:
- easier market selection
- establishing a profitable business
- effective planning of product-related strategies – distribution methods and types of promotional campaigns
- better matching products and services to current customer needs
- more effective analysis of market changes and flexible business management based on them
- improved communication between producer and consumers
- greater access to new customers and better promotional reach
Market segmentation – what are the B2B and B2C market segments?
A segment is a part of the market which has been separated due to its group of consumers with similar behavior towards a given product or service.
B2B market segments are most often divided in terms of such aspects as:
- field of activity
- activity profile
- size of the company
- products/services offered
As far as the B2C market is concerned, consumer segments can be distinguished on the basis of the following criteria:
- demographic characteristics (place of residence, age, gender)
- psychographic characteristics (social class, lifestyle, income)
- purchasing power
- customer preferences
- how to use the products
Multistage segmentation research is the basis for creating a marketing strategy for the company. Whether you run a transport company or a product packaging company, market segmentation will allow you to reach even more potentially interested customers. On the basis of this type of analysis it is possible to determine prices in particular product categories, as well as to determine distribution channels. Before you start a business, remember that successful sales are not possible without a thorough knowledge of your customers!