What is the Market Segmentation Theory?
Market segmentation means that an enterprise divides customers in the market into several customer groups according to a certain standard. Each customer group constitutes a submarket. There is a significant difference in demand between different submarkets. Market segmentation is the basic work of selecting the target market. The activities of marketing in the enterprise include segmenting a market and using it as the company's target market, designing the correct combination of products, services, prices, promotions and distribution systems to meet the needs and desires of customers in the segmented market. [1]
Market segmentation
- The concept of market segmentation was put forward by American marketer Wendell R. Smith in 1956.
- According to consumer desires and needs, the overall market that is difficult for companies to serve due to excessive scale is divided into several sub-markets with common characteristics, which are in the same
- Measurability, profitability, accessibility differences.
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- Market segmentation and target market selection is the first step in corporate activities. Without reasonable market segmentation and correct target market selection, all marketing activities will be unable to target the needs of target customers, focus on superior resources, or be unable to escape from the Red Sea competition. Looks pale and weak.
- Because of this, all marketers pay special attention to market segmentation and target market selection. However, looking at the book market, we can find that there are many books on market positioning, but the books that really analyze market segmentation and target market selection are almost zero. Even if some books cover it, it is only a detailed analysis of the market. Divided the target market choices and made a general description. Many friends in the business community have reported that the operability is not strong, and they still go by feeling in practice.
- Based on this, this book aims to develop a systematic, scientific, and executable operation process and method for enterprise marketers by analyzing western marketing classics and studying a large number of well-known companies' actual combat materials, combining theory and practice. Market segmentation and target market selection have since become simple, clear and scientific.