What Is a Segmented Market?

Segments are consumers who respond immediately to a given marketing campaign. ^[1]

Market segments

Segments are consumers who respond immediately to a given marketing campaign. ^[1]

Subdivision

(One)

Enterprises have many irregular and unsystematic behaviors in marketing strategies. The reason is that Chinese marketing theory books provide less help in this regard. In addition, some foreign books are not suitable for our market conditions and translation after translation.

The market segmentation process can be seen through the following examples:

An airline is interested in people who have never flown before (the breakdown criterion is the customer experience). And those who have never been in an airplane can be subdivided into those who are afraid of the plane, those who don't care about the plane, and those who have a positive attitude towards the plane (the criterion is the attitude). Among those who have a positive attitude, they also include high-income people who are able to take a plane (the breakdown criterion is attitude). So the airline concentrated its efforts on developing high-income groups who have a positive attitude towards flying but have not yet flown.

It can be seen that market segmentation includes the following steps:

1. Selected product market scope . The company should define its product market scope in an industry and use this as a basis for formulating a market development strategy.

2. List

Market segmentation, as a process of comparison, classification, and selection, should be carried out according to a certain procedure. Generally, there are several steps:

1. Choose the right market range

Enterprises based on their own operating conditions and

The purpose of market segmentation for enterprises is to achieve greater economic benefits by positioning differences in customer needs. As we all know, product differentiation will inevitably lead to a corresponding increase in production costs and marketing expenses, so companies must make a trade-off between the revenue from market segmentation and the cost of market segmentation. From this, we conclude that an effective market segment must have the following characteristics:

Measurability . Refers to each market segment

The main methods of market segmentation are

Target market selection strategy

According to the uniqueness of each market segment and the company's own goals, there are three target market strategies to choose from.

1. Indifference marketing

Indifference marketing refers to companies that only launch one product or only one set of marketing methods to attract customers. This can be considered when the company determines that there are few differences between the various market segments.

Market segment effect

Market segmentation is not based on product varieties or product series, but is divided from the perspective of consumers (referring to end consumers and industrial producers). It is based on the theoretical basis of market segmentation, that is, consumer demand, Motivation, diversity and differences in purchasing behavior. Market segmentation plays an extremely important role in the production and marketing of enterprises.

1. Conducive to selecting target markets and formulating marketing strategies.

The sub-markets after the market segmentation are more specific and it is easier to understand the needs of consumers. Enterprises can determine their own service targets, that is, the target market, according to their business ideas, policies, production technology and marketing forces. Aiming at smaller target markets, it is easy to formulate special marketing strategies. At the same time, in the segmented market, the information is easy to understand and feedback. Once the needs of consumers change, companies can quickly change marketing strategies and formulate corresponding countermeasures to adapt to changes in market demand and improve the adaptability and competitiveness of enterprises. .

Lenovo's product segmentation strategy is based on the clear differentiation of products. Lenovo has broken the traditional package promotion plan and launched different customer groups around the needs of the Fengxing, Tianjiao and Jiayue brands. "Segment" promotion plan. Customers who choose "Tianjiao" can purchase a magic disk that allows data to move around, a 3110 printer that can print digital photos wonderfully, a M700 multifunction machine of SOHO's good companion, and MP3 that allows people to enjoy digital music; choose "Fengxing" Users can purchase "Data Special Zone" dual-boot magic disk, distinctive personality printer, and "new song, choose me" MP3 player; users who love "Jiayue" can purchase "electronic small school bag" magic disk at a discount. , Complete the printer to learn to print, the network school card taught by a famous teacher, and the XP computer tutorial that makes a computer master.

2. Conducive to exploring market opportunities and opening up new markets.

Through market segmentation, companies can analyze and compare the purchase potential, satisfaction level, and competition of each market segment, and explore market opportunities that are beneficial to the company, so that the company can make production and relocation sales decisions in a timely manner. The production technology conditions of the enterprise compile a new product development plan, make necessary product technology reserves, master the initiative of product replacement, and develop new markets to better meet the needs of the market.

3. It is beneficial to concentrate manpower and material resources into the target market.

The resources, manpower, material resources and funds of any enterprise are limited. By segmenting the market and choosing the target market that suits them, companies can focus on people, finances, materials and resources to fight for advantages in local markets and then occupy their target market.

4. It is beneficial for enterprises to improve economic benefits.

The role of the first three aspects can make enterprises improve economic benefits. In addition, after the market segmentation of the company, the company can face its target market and produce marketable products, which can meet the market needs and increase the income of the company; marketable products can accelerate the flow of goods , Increase production batches, reduce production and sales costs of enterprises, improve the proficiency of production workers, improve product quality, and comprehensively improve the economic benefits of enterprises.

Market segment meaning

1. Market segmentation is a key link in formulating a marketing strategy

Marketing strategy includes the basic concepts of selecting a target market and deciding on the proper marketing mix. In practical applications, there are two ways: from market segmentation to marketing mix, that is, a heterogeneous market is first divided into several "sub-markets", and then the target market is selected from several sub-markets Target market strategies adapted to internal conditions and external environment, and design an effective marketing mix for the target market; From marketing mix to market segmentation, that is, after the marketing mix has been established, the product mix, distribution, promotion and price After making various arrangements, put the product into the market for trial sales; then, based on the market feedback information, research how consumers respond to different marketing mixes, segment the market, and select the target market; and then follow the characteristics of the target market's needs, Adjust marketing mix.

2. Market segmentation is good for identifying marketing opportunities

Marketing opportunities are demands that have appeared on the market but have not yet been met. This demand is often latent and generally not easy to spot. The use of market segmentation is easy to find such needs, and to find needs that are suitable for the development of the enterprise, so as to seize market opportunities and enable enterprises to win market initiative. For example, Hong Kong soap market competition has been fierce, but China's foreign trade department found that the fierce competition in Hong Kong soap market is mainly high-end products, while low-end soap is a "gap". As a result, the mainland soap industry successfully took advantage of low wages and successfully entered the low-end soap market in Hong Kong. As another example, China's clothing market is fiercely competitive. According to market segmentation, it can be seen that the fierce competition is mainly the youth clothing market and the children's clothing market, but the elderly clothing market is very deserted. As a result, some clothing companies have put the target market on the elderly clothing market and produced a variety of elderly clothing, with great success. These "empty" markets are market opportunities for companies.

3. Market segmentation can effectively compete with competitors

In the case of increasingly fierce competition between enterprises, market segmentation is conducive to discovering the characteristics of the needs of the target consumer group, so as to adjust the product structure, increase product characteristics, improve the market competitiveness of enterprises, and effectively compete with competitors. . For example, Japan has two of the largest confectionery companies. Previously, the chocolates produced were for the children's consumer market. In order to enhance its competitiveness, Morinaga developed a "high crown" large piece of chocolate after market research and full demonstration. It is priced at 70 yen and will be sold to the adult market. Meiji also refused to be outdone. Through market segmentation, it chose three submarkets: the junior high school student market, the high school student market, and the adult market. The company produces two large pieces of chocolate, one priced at 40 yen for junior high school students aged twelve and three years, and one priced at 60 yen for high school students aged 17 to 8. ; The two pieces are packaged together and the price is 100 yen, which is suitable for the adult market. Meiji's market segmentation strategy is superior to Morinaga's.

4. Market segmentation can effectively expand new markets and expand market share

It is not easy for an enterprise to expand the market. It must be expanded from small to large. Through market segmentation, companies can first select certain target markets that are most suitable for their occupation. After occupying these sub-markets, they will gradually advance and expand to expand market share.

5. Market segmentation is conducive to the advantages of enterprises

The marketing capabilities of each enterprise are limited to the overall market. Therefore, the enterprise must segment the overall market, determine its target market, and concentrate its advantages on the target market. Otherwise, enterprises will lose their advantages and suffer defeat in the fierce market competition. In particular, some small enterprises should pay more attention to the principle of market segmentation and choose their own market.