Segmentation


N's spirit Basic MBA > Segmentation

Segmentation

Segmentation is to divide marketing target into groups by similar purchase behavior. Segmentation helps the company to find appropriate segment to achieve marketing goal.

There is a wide variety of how to segment, for example, ages, sex, place of living, salary and feature of purchase behavior.


Effective Segmentation

Identifiable Segmentation
When a customer is chosen, it is important to recognize which segment he / she belongs to.

Segmentation including potential customers
Not only existing market but also potential market should be included to avoid opportunity loss.

Substantial Segmentation
Too fine segmentation is not substantial. Appropriate number of segment such as 5-10 pieces of segment is more substantial.

Measurable Segmentation
Number of customer in a segmentation and growth of it should be countable.


A framework of segmentation


Segmentation = customer unit * KBF
= (Demographic * Taste) * (Purchase Motive * Purchase process * Decision Making Unit)

Demographic: sex, age, occupation, place of living
Taste: living style, hobby
Purchase Motive: Value for customers such as 4P
Purchase process: AIDMA
DMU: Relationship between users and buyers

In B2B marketing, size of a customer's company or industry is often used as segment.


An example of segmentation

There is an example of segmentation dividing customers by size of company and industry.

Segmentation

Besides, profitability and competitive advantages are also used with segmentation.

Segmentation


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Marketing
Marketing Process
Segmentation
Positioning
Marketing Mix (4P)
Product Strategy
Pricing Strategy 1
Pricing Strategy 2
Pricing Strategy 3
Pricing Strategy 4
Price Strategy for Service
Innovation of Pricing Model
Channel Strategy
Promotion Strategy
Prevention of Competitor's Imitation
Brand Strategy
B2B Marketing 1
B2B Marketing 2
Estimation of Market Size
Estimation of Market Size (ATAR model)
Estimation of Market Size (Logistic curve)
Estimation of Market Size(BASS model)
Stage Gate System


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N's spirit Basic MBA > Segmentation

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