Essay on Segmentation Analysis : Market Segmentation

778 Words Jul 17th, 2015 4 Pages
Market Segmentation is the process of dividing the target market into groups of smaller segments using certain parameters in order to understand the customers and target different products and services to reach the buyers in that segment, thereby shrinking the sales cycle, increasing revenues and increasing the customer retention rate.
The three steps in the marketing segmentation process are Segmentation, Targeting and Positioning.
The first step of Segmentation can be broken down into two simple points as identifying segmentation variables and segmenting the marketing, and developing profiles of resulting segments. But, it is not as simple as they sound. A market segment is a group of customers who share similar values and/or beliefs. Segmentation has four famous approaches, namely geographic, demographic, psychographic, or behavioral scale. Geographical segmentation is the act of marketing the products to a region, or country depending on variables such as language spoken, traditions, population, and climate. Demographic segmentation is the act of segmenting on the characters such as age, gender, population, income, family size, or nationality. Psychographic segmentation segments the customers based on their social class, and personality. It segments the customers depending on their interests, activities and opinions, which in totality makes up their personality. Behavioral variables such as loyalty, occasions, attitude, and benefits are used for Behavioral segmentation.…

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