Understanding market segmentation, criteria, examples, and their goals for businesses
In marketing strategies, you will find a term titled Market Segmentation. It can improve marketing and make sales and profits obtained by the company to be more maximal, but do you know the understanding of market segmentation in depth?
For those of you who want to start a business, it’s a good idea to do this process. Then, what is meant by market segmentation? What are the purposes and criteria? What is the inim of the example? Here’s the full explanation for you.
Definition of market segmentation
Definition of market segmentation is a grouping process or distribution of prospective consumers based on different characteristics. This can be intended as a different distribution of markets (heterogeneous) into homogeneous market groups. Each group can be targeted to market a product according to the needs, location and characteristics of the buyer in the market.
The purpose of the market distribution
After knowing the understanding of market segmentation, then it must know the purpose. The purpose of the market distribution is to increase sales volume. Consumer distribution is useful for knowing their needs and desires. Not only that, market distribution can also allow business people to develop their products at a lower cost.
This is because business people can improve products with certain targeted consumer groups. The benefits, marketing and sales are more effective than trying to provide products in large stocks to many groups.
Market segmentation criteria
Market distribution is practiced in the business domain to simplify marketing strategies. This is done by dividing the market with a broad base into a particular group. Then, the right marketing method is designed to attract each group.
It’s a good idea to focus on market segment resources with high growth. Here are some market distribution criteria for your business.
1. Measurable (measured)
The market segment needs to be measured by the basis of the volume or sales value. This requires reliable market research and is able to identify the size of the market segment. That way, the level of accuracy makes sense. Furthermore, business people can determine their focus to the marketing segment.
2. Substantial (substantial)
The next criteria are related to substance. In short, removing the marketing budget into a market that is not large enough does not need to be done. This will only make wasteful expenses.
3. Accessible (accessible)
When you do research on the market segment, it’s a good idea to consider how the audience can access information about your products and companies. Get to know the strength and capabilities of the marketing division on your business.
4. Differentiable (distinguished)
Basically, a good and ideal market segment must be homogeneous internally. That is, all customers in the segment have the same properties and preferences. However, externally, the segment is heterogeneous.
The difference between market segments must be clear. That way, product promotion and marketing tools can be used effectively and not overlap.
5. Actionable (can be followed up)
The market segment criteria which subsequently must have a practical value and must provide supporting information for the sales method. The results of segmentation must also be easily measured and defined.
Examples of market distribution
There are many examples of market distribution in the community. One of them is the distribution of the Samsung Galaxy Young smartphone market. As the name suggests, this smart phone is intended for young people who are young, like students and students.
Having an interesting physical appearance with many color choices, this phone is not only favored by women, but also men. With a very affordable price, this phone is intended for the lower middle class.
As a business actor, you must understand in detail about the understanding of market segmentation and all things related to this. This segmentation process is useful for increasing product marketing in a clearer direction. In addition, existing resources can also be used more efficiently and effectively.
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