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MARKETING MANAGEMENT - Market Segmentation, Targeting and Positioning

Segmentation Analysis - Market Segmentation, Targeting and Positioning

   Posted On :  18.06.2018 12:34 am

Here is a list of few general steps, referred to as segmentation analysis,

Segmentation Analysis

Here is a list of few general steps, referred to as segmentation analysis, that will be most often followed after the decision to employ market segmentation has been made. Examples of questions to be answered during each step are also given.
 
Step-1 Define the purpose and scope of the segmentation
 
1. What are our Marketing Objectives?
 
2. Are we looking for new segments or determining how to better satisfy existing ones?
 
3. Will we use existing data or invest time and money in new research?
 
4. What level of detail will be needed in the segmentation analysis?

Step-2 Analyze total Market Data
 
1. What is the character of the total market? (e.g. size)
 
2. Are there basic differences between users and non-users of the product class?
 
3. Are there any factors which clearly distinguish users from non-users or users of different brands?
 
4. What is our competitive position in the market now?

Step-3 Develop segment profiles

1. What factor seems to differentiate groups of consumers most clearly?
 
2. Are the profiles of each segment internally consistent?

Step-4 Evaluate segmentation

1. What are the major similarities and differences among segments?
 
2. Should the number of segments described be reduced or increased?
 
3. How sensitive is this segmentation of the market to growth?

Step-5 Select target segment(s)

1. Which segment(s) represent our best market opportunity?
 
2. What further details do we know about the target segment’s characteristics and market behaviour?
 
3. If complete data on market behaviour for the target segment are not available, can we make reasonable assumptions?
 
4. Are we alone in competing for this target segment?
 
Step-6 Designing the marketing strategy for the target segment
 
1. What type of product do these consumers want?
 
2. What kinds of price, promotion or distribution tactics will best suit their needs?
 
3. Would other segments react positively to a similar strategy? (if so, the segments should probably be merged)

Step-7 Reappraisal of segmentation
 
1. Do we have the resources to carry out this strategy?
 
2. If we wish to broaden or change our target definition in the future, how flexible is the strategy?

3. If we wish to change some element of the strategy in the future, how would that change probably influence the target segment?
 
4. Does the target segment/strategic plan meet our objective? Does it fit our corporate strengths?

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