Market Segmentation

We all know Consumers are complex and to sell them, it is important to understand them well. Consumers buying behavior depends on various factors like their priorities, needs, interests and it is very difficult to understand them in a complete group.  Hence to target & cover the consumers effectively , the consumers/markets are divided into various subsets on the basis of common interests, needs, geography etc. This division helps companies to design and implement the strategies effectively and efficiently.

The process of dividing and defining large market or all consumers in the  subgroups or subsets is known as the Market Segmentation. In the process of segmentation, the consumers are divided into identifiable groups having common characteristics. The market or customers can be divided on the basis of following:

• Demographical features
• Geographical features
• Psychological features &
• Behavioral features

The groups identified under marketing segmentation should have following features:

• The group must be measurable and effectively sized
• Group must be clearly identifiable and segmentised
• It can be targeted with the promotional efforts
• It fits to the marketing mix
• It must be easily definable 

The subsets defined in the market segmentation process helps in defining the right marketing mix for the company. It helps in identifying the prospect opportunities to the companies & developing the correct promotional programs and making adjustments in the various selling strategies and tactics.

The market segmentation also helps in developing the product or solution for a particular subset. It helps in servicing the group better and correct selection of media and execution of media efforts. It helps companies in drafting distribution strategies, fixing the prices and thus better servicing to the consumers,

The customer segmentation has to be done very carefully. It not only assist in productive sales territory management but also in customer retention and thus increasing the customer life value.  

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