What is a market segmentation analysis?
market segmentation analysis is a business strategy that includes the assignment of various segments of the company's customer base to the specified categories. The purpose of their division into categories is better to customize products and services specific to category needs. The categories in the analysis of the market segmentation are assigned to the needs identified in a particular market. For example, the category could be distinguished into lower, medium and upper income. They can also be divided according to gender lines. Within gender, the market can still be divided into pre -school, young, young adults and older sectors. Categories are identified according to market requirements.
When the company distributes the market into segments after analyzing the market segmentation, it will know how to allocate its resources to targeting this market. For example, the company could divide its market into a literate and illiterate. Will make tens of products more attractive to the identified segment by deciding how to pack the product, fix the price and other field strategies. Advertising and pink products focused on an illiterate group will differ from focused on more educated people. The price and packaging of the product also vary.
The example of the impact of the market segmentation analysis can be observed in the way manufacturers and manufacturers are sold on segments of their consumer base in developing countries. Most powder milk producers are differently packaging on both markets. Powder milk designed for a higher class is packed in well -designed cans, while those intended for the lower class are wrapped in smaller bags. This is a strategy that has paid off very well, because canned milk is out of the reach of most lower -class members. They can afford to buy smaller product bags that are much cheaper than a canned variety.
As such an analysis of the market segmentation, it puts people into groups on the basis of identified common common value. The common value couldto be the fact that they do not have many resources, are teenagers or any other aspect. The market segmentation allows companies to strongly compete with the highly competitive market by allowing it to advertise campaigns of the equipment and other promotional efforts focused on its target audience. The opposite of the market segmentation is the type of marketing known as mass marketing. This type of marketing treats all the same regardless of preferences or needs of separate segments.