Here is a list of few general steps, referred to as 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
1. What are
our Marketing Objectives?
2. Are we looking for new segments or determining how to better satisfy
3. Will we use existing data or invest time and money in new research?
level of detail will be needed in the segmentation analysis?
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
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 segmentation1. 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?
Tags : MARKETING MANAGEMENT - Market Segmentation, Targeting and Positioning
Last 30 days 729 views