Monday 28 October 2013

The Process Of Making A Market Segmentation Strategy

By Alissa Gilliam


Business in general relies a lot on marketing strategies because it is through these tactics that a business entity will know how to promote the product to the right customer. Basically, one of the most important aspects of marketing would be the target segmentation because this would involve knowing how to position the product in the market. In order for a marketer to do this, he has to make a really good market segmentation strategy.

Everyone is probably familiar with the concept of the hierarchy of needs made by Maslow which states that a person has five levels of needs that have to be satisfied. These are the things needed to live, then the things needed to stay safe, then the things needed to feel a sense of belonging, and the things needed to make one feel good. All products will have to be under one of these needs otherwise the product will not do well in the market.

These categories will give one an idea on what he is going to sell. With regard to the hierarchy, one can actually relate the needs here to the type of products that are being sold in the market. For example, the survival needs are provided by the convenience products, the self esteem or actualization needs will be covered by the luxury items, and so on and so forth.

In order to know which target segment should be concentrated on, one must first be able to make an analysis on the demographics of the ideal consumer. Demographics meaning the age group that would be target, the gender, and of course the class the consumer is in whether he is in the A, B, C or D classes. When he has determined that, he can go even much further.

By going deeper, this means that the marketer has to analyze the the movements of the customers in order to know how they work. In order to do this, he has to determine the psychographics to know the cluster of behavior patterns. A marketer has to take a close look at how the consumer behaves, where he likes to go, and what he likes to do.

Zooming in on the interests and behaviors of the consumer would enable the marketer to be able to solve the brand loyalty issue. Brand loyalty means the bond that the customer has with a certain brand. By taking a look at the lifestyle of the consumer, the marketer may now connect the brand to his lifestyle so that he will keep on using the brand.

Through this process, it is now possible to make great strategies. The four Ps of marketing will be at work here now because these concepts will be the one that will mix up all the above concepts. From there, a lot of things may now be implemented.

Now if one is tasked to make a market segmentation strategy, he must first go through this basic process. He must first determine what the product is and what type of people should be targeted. Once that is done, many plans and tactics may be made.




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