Understanding of market segmentation, terms, benefits, procedures and species in business

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Understanding of market segmentation, terms, benefits, procedures and species in business

Understanding of market segmentation terms benefits procedures and species in business

Market segmentation is a dynamic related to business / business. Therefore, the elements surrounding the segmentation of product marketing must be understood by employers. However, not all business people know things related to this. On that basis, in the following article it will be explained by understanding, terms, benefits, procedures, and types of determining consumer segmentation in business.

Definition of market segmentation

Segmentation in product marketing is consumer mapping that has characteristics, purchasing power, different needs in certain market situations. Automatically this consumer will target the purchase of products according to the marketing strategy. Usually marketing segmentation is used as a company strategy to find the right consumer target. Because if this mapping has been controlled, the company can produce goods / services that are needed.

The definition of other marketing segmentation is to unite all targeted consumers widely, to be more heterogeneous. The aim is nothing but to improve the effectiveness of marketing as well as utilization of production resources.

Understanding market segmentation according to experts

In addition to the general understanding above, market segmentation is also interpreted by several experts. Here are some of them:

According to Gary Amstrong

Market segmentation is a broad market dividing activity to be printed according to the needs and characteristics of consumers. The aim is that the company can give birth to products that they are needed by them.

While according to Pride and Ferrel

Market segmentation is a system for dividing the market into several potential and targeted customers. Especially for consumers who have the same characteristics and needs.

Market segmentation requirements

To carry out strategies and zunting consumer segmentation in business marketing activities should not be careless. Because there are certain conditions that must be fulfilled first by business people. Here is the terms in question:

1. Segmentation must be measured

The requirement to determine the first marketing segmentation is segmentation must be measured. Including a large measure and market area and potential purchasing power there.

One example of the measuring results of market segmentation is the interest of female consumers towards fashion than men. If this segmentation size is certainly a businessman easier when looking for customers.

2. Logical market segmentation and can be run

The second requirement is to make marketing segmentation according to your best ideas but make sure it can be run. This is related to the strategy plan that will be used to make the segmentation.

If the strategy cannot be run out of course there is no point in making segmentation. Because certainly there will be no product that will be marketed even if the buyer’s characteristics have been bagged.

3. There must be a target segmentation to be achieved

If you want to make market segmentation determine the important points that are strategic targets. Make sure the target makes sense so that it can be achieved through the segmentation system.

The target of the company’s pemerasean segmentation is also called a targeted market. From here which market mapping will appear that is prioritized and not.

4. Market is more heterogeneous and wide target

Please make market segmentation but make sure the target market remains wide. Because if it’s too narrow, fewer consumers. This means that the company’s sales advantage is also very small.

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Benefits of Market Segmentation

Market segmentation is a good marketing strategy. Because there are several benefit benefits of the company. Here are the benefits in question:

1. Clearer marketing ideas

The first benefit is the idea of ​​marketing becomes clearer. Because before supplying goods items already pocketed consumer data that will buy products.

These data are not only related to consumer characteristics and needs. But also an interest or people’s purchasing power capabilities. Therefore companies can determine marketing ideas that are more appropriate according to consumer data.

2. It’s easier to set the product

With market segmentation can be ascertained product settings easier. Because the target of consumers of the product already exists. So the company lives just market.

This is also the reason why marketing after market segmentation is more effective and efficient. Because the best-selling product opportunities purchased by consumers are greater than those who do not apply it.

3. find comparisons between markets

If applying market segmentation of course the company has pocketed the characteristics, purchasing power, preferred type of marketing, and customer requirements. It is not denied regarding this context, consumers have different sizes.

Because of that, the company can make comparisons between markets by conducting consumer groupings. Later a comparison of which group comparisons buy more products and not.

Market segmentation procedure

Marketing segmentation is a business strategy carried out by certain techniques or procedures. Here is procedures in marketing segmentation

1. Survey Stage

The first procedure is to conduct exploration known as Survey Stage. The survey form is determined by the company itself, either by conducting interviews, streaking inquiry and asking for suggestions and public interest.

The purpose of the implementation of this procedure is that the company has initial data related to the public in certain markets. Including information about their motivation and attitude towards one product. If these initial data has been obtained, then the market segmentation application step can be continued by applying the second procedure. Namely conducting information analysis.

2. Analysis Stage.

If the company already has initial data related to consumers, then the information must be analyzed first known as Analysis Stage. One field of analysis for market segmentation is to find out the reasons for consumer attitudes and motivation. Later the results of this analysis will be the initial steps of grouping according to the same attitude, motivation and causes.

3. Profiling Stage

Profiling Stage is a market segmentation procedure where the company begins to identify several consumer groups. The benchmark is survey data at the beginning plus the results of the results of consumer analysis.

From this process of identification, the names of consumer groups will appear that will be used as a sales target. Well, if everything is complete new products are marketed to them according to the information that has been obtained.

Type of market segmentation in business

Market segmentation is not single but there are still types of segmentation that surrounds it. Here are the types of marketing segmentation that you need to know:

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1. Segmentation of behavior

As the name implies behavioral segmentation is the grouping of consumers by reviewing from their behavior on the products offered. Which includes the size in it is knowledge, loyalty, idealism and consumer response.

For example, if you sell baby equipment, please offer it on social media than in an online store. Because consumer response is faster and there are loyalty buyers there.

2. Psychographic segmentation

Psychographic segmentation means is consumer grouping on the basis of their favorites and interest in certain products. Can also be directed to consumers who pursue a special profession and hobby.

Examples of this segmentation are marketing books in the group or read lovers group. The next example is to sell fishing tools to people or groups who really like fishing.

3. Demographic segmentation

Demographic segmentation is a consumer grouping on the basis of generality. Like age, gender, education, income and other than. Even though the impression is easy but this kind of segmentation requires forehead. Because of the more broad factors of consumer and more careful analysis to determine the right market group.

4. Geographical segmentation

Geographical segmentation is the determination of marketing groups based on consumer residences. This is related to regionality such as villages, cities, provinces and islands.


Those are some types of market segmentation that people must know. If this theory has been understood new marketing can be run. If not, it’s better to delay first or the customer’s target is not right.

Also note the bookkeeping process in the business, so that business financial flows can be monitored by transparent and your business development plan can run normally.

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