The role of market segmentation

How should market segments be divided?

Market segmentation refers to the market classification process that marketers divide the market of a product into several consumer groups according to the differences of consumers' needs and desires, buying behaviors and buying habits through market research. Every consumer group is a market segment, and every market segment is a group of consumers with similar demand tendencies.

The basis of subdividing the consumer market

1 Geographical breakdown: country, region, city, countryside, climate and topography.

Population breakdown: age, sex, occupation, income, education level, family population, family type, family life cycle, nationality, nationality, religion and social class.

3 psychological subdivision: social class, lifestyle and personality.

Behavior segmentation: opportunity, pursuit of benefits, user status, product utilization rate, loyalty, purchase preparation stage and attitude.

What is the procedure of market segmentation?

McCarthy, an American marketing scientist, put forward a set of procedures for market segmentation, including seven steps. ?

(1) Select the product market range, that is, determine what industry to enter and what products to produce. The market scope of products should be determined by the needs of customers, not the characteristics of the products themselves. For example, a real estate company plans to build a simple house in the countryside. If we only consider the product characteristics, the company may think that the rental object of this house is low-income customers, but from the market demand, high-income people may also be potential customers of this house. Because high-income people are tired of living in high-rise buildings, they may just yearn for the tranquility of the countryside, so they may become customers of such houses. ?

(2) List the basic needs of potential customers. For example, companies can understand the basic needs of potential consumers for the aforementioned houses through surveys. These requirements may include: shelter from wind and rain, safety, convenience, tranquility, reasonable design, complete indoor furnishings, good engineering quality and so on. ?

(3) Understand the different needs of different potential users. Different customers may emphasize different points about the listed basic requirements. For example, economy, safety and shelter from the wind and rain are all emphasized by all customers, but some users may pay special attention to the convenience of life, while some users have high requirements for quiet environment and interior decoration. Through this difference comparison, we can initially identify different customer groups. ? (4) Take out the same needs of potential customers and take special needs as the subdivision standard. Although the above requirements for purchasing houses are important, they cannot be used as the basis for market segmentation. If shelter from the wind and rain and safety are the needs of every user, they cannot be used as the standard of market segmentation and should be excluded. ?

(5) Divide potential customers into different groups or sub-markets according to their differences in basic needs, and give each sub-market a definite name. For example, western real estate companies tend to divide customers who buy houses into many market segments, such as active people, mature people, newly married people and holiday people, and adopt different marketing strategies accordingly. ?

(6) Further analyze the characteristics of demand and purchase behavior of each market segment, and analyze the reasons, so as to decide whether these market segments can be merged or further subdivided. ?

(7) Estimate the scale of each market segment, that is, on the basis of investigation, estimate the number of customers, purchase frequency and average purchase volume of each market segment, and analyze the product competition and development trend of this market segment. ?

The method of market segmentation?

Enterprises must pay attention to the following issues when using segmentation standards for market segmentation: First, the criteria for market segmentation are dynamic. The standard of market segmentation is not static, but constantly changing with the changes of social productivity and market conditions. Such as age, income, town size, purchase motivation, etc. Are variable. Second, different enterprises should adopt different standards in market segmentation. Because each enterprise has different production technical conditions, resources, financial resources and marketing products, the standards adopted should also be different. Third, enterprises can use a standard, that is, a single variable factor segmentation, or a combination of multiple variable factors or a series of variable factors for market segmentation. Here are several methods of market segmentation. ?

(A) univariate factor method. ? Market segmentation is based on an important factor that affects consumer demand. For example, clothing enterprises can divide the market into children's wear, juvenile wear, youth wear, middle-aged wear, middle-aged wear and old-age wear according to age; Or according to the different climate, it can be divided into spring clothes, summer clothes, autumn clothes and winter clothes. ?

(2) Multivariate factor combination method. ? Market segmentation is based on two or more factors that affect consumer demand. For example, in the producer market boiler plant, the market is divided mainly according to the scale of the enterprise, the geographical location of users, the final use of products and the potential market size. ?

(3) Series variable factor method. ? According to the operating characteristics of enterprises and the factors affecting consumer demand, the market is subdivided from coarse to fine. This method can make the target market more clear and specific, which is beneficial for enterprises to better formulate corresponding marketing strategies. Such as bicycle market, according to geographical location (city, suburb, countryside, mountainous area), gender (male, female), age (children, youth, middle-aged and middle-aged people), income (high, middle and low), occupation (workers, farmers, students, employees) and purchase motivation (novelty, beauty, low price and good quality).

Steps of market segmentation,

It can be seen that market segmentation includes the following steps: 1. Select the product market range. The company should make clear the market scope of its products in a certain industry. On this basis, the market development strategy is formulated. 2. List the needs of potential customers. List the variables that affect product market demand and customers' buying behavior from the aspects of geography, population and psychology. 3. Analyze the different needs of potential customers. The company should sample different potential customers and evaluate the listed demand variables. Understand the needs of customers. 4. Formulate corresponding marketing strategies. Investigate, analyze and evaluate each market segment, finally determine the market segment that can enter, and formulate the corresponding marketing strategy. As a process of comparison, classification and selection, market segmentation should be carried out according to certain procedures. There are generally several steps: 1. Correct selection of market scope. Enterprises determine the scope of entering the market according to their own operating conditions and capabilities, such as what industry to enter, what products to produce and what services to provide. 2. List the needs of all potential customers in the market. According to the subdivision standard, the basic needs of potential customers are listed more comprehensively. As the basic data and basis for further research in the future. 3. Analyze the different needs of potential customers and preliminarily divide the market. According to the listed demand, the enterprise will further collect relevant market information and customer background information through sampling survey, and then initially divide some market segments with the greatest difference and select at least three sub-markets. 4. Screen and analyze all market segments according to the conditions of effective market segments. Eliminate unqualified and useless market segments. 5. To facilitate operation, name the market segments. According to the characteristics of customers in each market segment, a tourism market is divided into merchant type, comfort type, curiosity type, adventure type, enjoyment type, frequent outing type, etc. 6. Review and further investigate the selected market after segmentation, and fully understand the characteristics of each market segment. The scale and potential demand of the market segments developed by this enterprise need further analysis and research. 7. Decide the size of the market segment, and select the target market enterprises to select the sub-market that is consistent with their business advantages and characteristics as the target market. Without this step, they have achieved the goal of market segmentation. After the above seven steps, the enterprise has completed the market segmentation work, and can determine the target market and adopt the corresponding target market according to its own actual situation.

Noun explanation of market segmentation

Market segmentation is a process in which enterprises divide the whole market into different consumer groups according to different consumer demands. Its objective basis is the heterogeneity of consumer demand. The main basis of market segmentation is the customer groups with the same demand in heterogeneous markets, which is essentially to seek homogeneity in heterogeneous markets. Therefore, it can be said that the goal of market segmentation is not decomposition, but aggregation. That is to gather consumers with the same needs in markets with different needs. Of course, market segmentation is not the purpose of enterprises, nor can it be segmented for the sake of segmentation. The finer the market, the better. Fiberhome headhunters believe that there are two extreme ways of market segmentation: complete market segmentation and no market segmentation; There are a series of transitional segmentation modes between these two extremes. 1. Complete market segmentation The so-called complete segmentation means that every consumer in the market constitutes an independent sub-market, and enterprises produce different products for each consumer according to their different needs. Theoretically, only some small-scale markets with few consumers can be completely subdivided, which is not economical for enterprises. Nevertheless, complete segmentation still has a big market in some industries, such as aircraft manufacturing. In recent years, the popular "customized marketing" is the result of enterprises' complete segmentation of the market. 2. No market segmentation No market segmentation means that every consumer's demand in the market is exactly the same, or enterprises deliberately ignore the differences in consumer demand without market segmentation. As far as the consumer market is concerned, the subdivision variables mainly include geographical environment factors, population factors, consumer psychology factors, consumer behavior factors, consumer benefit factors and so on. There are five basic forms of market segmentation: geographical segmentation, crowd segmentation, psychological segmentation, behavioral segmentation and benefit segmentation.

What are the basic methods of market segmentation?

Three strategies of market segmentation research;

The direct goal of market segmentation research is to determine the different reactions of customer groups to product differences or marketing mix variables, and its ultimate goal is to determine the groups that provide the company with the greatest potential profits.

Common market segmentation research has the following three strategies:

Pre-division: according to some pre-determined customer groups, they have different requirements for products and have different reactions to marketing mix variables. This subdivision is based on convenience or tradition, not on strict empirical research. Marketing practice at home and abroad has proved that this segmentation strategy is often unsatisfactory.

After division: existing knowledge or research shows that some groups already exist. Through empirical research, according to the similarities and differences of consumers' answers to some questions.

Arbitrary division: I don't know the number and types of market segments, and how or why. Identify market segments through data collection and analysis. Arbitrary division is also late division.

What is market segmentation?

First, this is a subdivision.

Study on life style and values. A lot of literature.

E-marketing/research/reading list? A study of lifestyle and values. Second, this is another valuable subdivision research model. Transfer from Market Researcher Forum/Resources * * * Enjoy some charts, and you can't copy them, but you need to look here. cmra/bbs/showbbs？ id = 87 & ampbd=8。 totable = 1 & amp； Topage=4 market segmentation research model For similar market research problems, using relevant models for research and analysis will minimize the personal errors of researchers.

It is the core of CRC research and development to combine these models with customers' specific problems and constantly supplement and revise them. "Market segmentation is one of the most attractive areas in market research. It is not only a scientific work that uses a variety of mathematical analysis methods, but also an artistic creation that requires the imagination and insight of researchers.

"First of all, why use market segmentation? China, with a population of nearly 654.38+0.3 billion, is the most potential market in the world, but today most enterprises active in it realize that they can't buy the whole market, or at least they can't attract all residential buyers in the same way. Because on the one hand, there are too many buyers, too scattered, and the demand is very different; On the other hand, there are great differences in the ability of enterprises to meet different markets.

Therefore, every enterprise must find the market part that it can satisfy best. What is market segmentation? Market segmentation: The market is divided into groups of buyers with different needs, personalities or behaviors. In market research, different market segments are defined by cluster analysis, CHAID and other methods, with the aim of minimizing the internal differences between individuals in the same market segment and maximizing the differences between different market segments.

For market decision makers, the purpose of market segmentation is to adopt a unique product or marketing combination strategy for each buyer group in order to obtain the best income. China Resources believes that the marketing scheme with the largest target customer group may not be the optimal allocation scheme of market resources.

For most products or services, there is a target market, which is more profitable than other ordinary markets. The purpose of market segmentation research is to find and describe their own target market for customers and determine the best marketing strategy for the target market.

Experience has proved that Tietong's market segmentation research can effectively improve the ability of market decision makers to cope with complex environment and make marketing easier. It will be easier to define the needs of a group of consumers, especially when they have many common characteristics (for example, seeking the same interests, having the same age, gender, etc.). ).

Determine the appropriate position. Identify markets that use services and markets that don't.

By using the segmentation method of "positioning marketing", new companies or new products aim at buyers with weak competition and help mature products find new buyers. Improve the use efficiency of marketing resources.

Designing the best product, price, promotion and distribution strategies for market segments can make more effective use of market resources. Second, when to use market segmentation If you are faced with the following problems: You have a clear concept or product, but you don't know who is most likely to buy it ... The product positioning is very clear, but you don't know that the combination of promotion and promotion can attract the target customers to the greatest extent ... Different consumers have different preferences for products, and you want to know which preferences you can satisfy ... The sales volume seems to be unchanged, but you already feel that the composition of the customer base is changing. You want to know the details of the change ... You want to enter the territory firmly occupied by competitors, hoping to get a small base area first ... You dominate the market, but some competitors begin to occupy your territory ... Although you have good products, the market data shows that the marketing plan has suffered great setbacks ... As a new market decision-maker, you need to re-examine the company's marketing plan, and market segmentation is the first step ... Research on China Resources Market Segmentation based on practical experience of several projects and advanced analysis methods.

Case Analysis of China Resources Market Segmentation In the late 1990s, the mobile phone market in China was filled with smoke. Although the market position of the three international brands is hard to shake, many local brands are also eager to try. After all, the profit temptation brought by the rapid growth of market space is enormous.

As a well-known local telecom equipment supplier, the problem our customers face is whether consumers can accept domestic brand mobile phone products. Where are the obstacles? Which consumers are most acceptable? What kind of marketing mix should be adopted to attack them? During this period, customers are most concerned about how to design price strategy and promotion strategy. Based on the research model of China Resources market segmentation, the researchers provided customers with a complete segmentation scheme and targeted marketing strategies.

The definition of target customer group in the survey conclusion is highly consistent with the results of market trial sales conducted by customers in the same period. Third, CRC market segmentation research steps The basic concept of market segmentation is to establish a certain relationship between basic variables (such as the gender and age of consumers) and behavioral variables (such as the purchase rate of products) through statistical methods.

Therefore, the selection of basic variables and the method of establishing the relationship between variables become the key to the success or failure of subdivision research. Step 1: Understand the basic situation As an expensive market research project, CRC needs to discuss the following issues with customers before starting to design the project better.

How involved are consumers in products or services? How much do consumers know about this product, service or industry? To what extent are they willing and able to discuss? Is this a new product or an existing product? What is the purpose of market segmentation research? Is it to increase the loyalty of existing customers to products, to attract new customers or to attract customers from competitors? Does market segmentation research serve short-term planning or long-term strategy? How do managers and sellers view the existing market structure? Step 2: Determine the basic variables. This is the most important step in the process of market segmentation. According to the research experience of China Resources on the mainland market, some consumers in China are different from those in Europe and America.

What is market segmentation? What's the important role?

Market segmentation: it is a process that enterprises divide the whole market into different consumer groups according to the different needs of consumers. Its objective basis is the heterogeneity of consumer demand. The main basis of market segmentation is the customer base with consistent demand in heterogeneous markets, and the essence is to seek homogeneity in heterogeneous markets. The goal of market segmentation is aggregation, that is, aggregation of consumers with the same needs in different markets.

The role of market segmentation:

Market segmentation is not carried out according to product varieties and product series, but from the perspective of consumers (referring to final consumers and industrial producers), which is based on the theoretical basis of market segmentation, that is, the diversity and differences of consumer demand, motivation and purchase behavior. Market segmentation plays an extremely important role in the production and marketing of enterprises.

First, it is beneficial for enterprises to determine their target market.

Second, it is beneficial for enterprises to discover market opportunities.

Third, it can enable enterprises to concentrate human, financial, material and information resources on the target market, and form scale effect in operation, which is more significant for small and medium-sized enterprises and non-state-owned enterprises.

Fourth, it is beneficial to formulate and adjust the marketing mix strategy.

Steps of market segmentation,

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

1. The selected product market range. The company should make clear the market scope of its products in a certain industry, and make the market development strategy on this basis.

2. List the needs of potential customers. The variables that affect product market demand and customers' buying behavior can be listed from the aspects of geography, population and psychology.

3. Analyze the different needs of potential customers. The company should sample different potential customers and evaluate the listed demand variables to understand the customers' * * * needs.

4. Formulate corresponding marketing strategies. Investigate, analyze and evaluate all market segments, finally determine the market segments that can enter, and formulate corresponding marketing strategies.

Procedures for market segmentation

As a process of comparison, classification and selection, market segmentation should be carried out according to certain procedures, usually according to the following steps:

1. Choose the market range correctly.

Enterprises determine the scope of entering the market according to their own operating conditions and capabilities, such as what industry to enter, what products to produce and what services to provide.

2. List the needs of all potential customers in the market.

According to the subdivision standard, the basic needs of potential customers are comprehensively listed as the basic data and basis for further research.

3. Analyze the different needs of potential customers and preliminarily divide the market.

Enterprises will further collect relevant market information and customer background information through sampling surveys, and then initially divide some market segments with the greatest differences and select at least three sub-markets.

sift

According to the conditions of effective market segmentation, all market segments are analyzed and studied, and unqualified and useless market segments are eliminated.

5. Name the market segments

In order to facilitate the operation, we can divide a tourism market into merchant type, comfort type, curiosity type, adventure type, enjoyment type, frequent outing type and so on. By combining the customer characteristics of each market segment.

review

Further investigate and study the selected market after segmentation, fully understand the characteristics of each market segment, the scale and potential demand of the market segment developed by this enterprise, and what characteristics need further analysis and research.

7. Decide the size of the market segment and select the target market.

In each sub-market, the enterprise chooses the sub-market consistent with its operating advantages and characteristics as the target market. Without this step, investment will achieve the purpose of market segmentation.

After the above seven steps, the enterprise has completed the work of market segmentation, and needs to determine the target market according to its own actual situation and adopt corresponding target market strategies.

How to write the market segmentation of products?

3. 1 univariate method

The so-called univariate method refers to selecting the most important factors that affect the needs of consumers or users as segmentation variables according to the results of market research, so as to achieve the purpose of market segmentation. This subdivision method is based on the company's business practice, industry experience and understanding of organizational customers, and finds a variable that can effectively distinguish customers from macro variables or micro variables, so that the company's marketing mix can produce effective corresponding variables. For example, the main influencing factor of beer market demand is season, and different quantities can be produced according to different seasons. In addition, gender is often regarded as a market segmentation variable by enterprises, and the appearance of women's clothing stores and women's streets reflects that gender standards are valued by everyone.

3.2 Dominant factor arrangement method

The leading factor arrangement method is to divide the market by one factor, such as dividing the clothing market by gender and dividing the toy market by age. This method is simple and feasible, but it is difficult to reflect the complex needs of consumers.

3.3 Comprehensive factor subdivision method

That is to say, the clothing market can be divided into different market segments by two or more factors that affect consumer demand, such as gender, income level and age.

This is the way. You can use the factors of Jiaduobao to subdivide it and hope to adopt it.