Module 8 market segmentation (Entrep)

Market Segmentation

- is an entrepreneurial marketing strategy designed primarily to divide the market into small segments with distinct needs, characteristics, or behavior (Kotler & Armstrong, p. 12) - It is the process of dividing the market into homogenous part or groups. (So & Torres, p. 55

Important Factors to Consider In Market Segmentation

1. Accessibility of the market segment. It must be accessible to the business. 2. Size of the market segment. It must be wide to provide wealth to the Entrepreneurial venture. 3. Distinction of the market segment. It must be easily differentiated from the total market.

Benefits of Market Segmentation

1. Improves campaign performances 2. Informs product development 3. Reveals areas to expand 4. Improves business focus 5. Informs other business decisions

Demographic Segmentation

Market is divided according to personal traits of their consumers like Age, Gender, Income, Religion, Nationality. It is the easiest and most common used in market segmentation. -Refers to quantifiable and factual statistics of the population such as age, sex, income, occupation and any information gathered by National Statistics Office (NSO) Firms that seek to use demographic segmentation would typically look up statistics about their selected demographic criteria to get an idea about how big this segment might be.

Behavioral Segmentation

Market is divided on the way customers used and acted toward the products. It is based on the customers' knowledge, responses, perceptions, reactions, benefits and loyalty. -refers to how we behave when buying a product, whether these actions maybe conscious or unconscious in nature. This includes issues such as when do we typically buy a product, what we look for in buying the product, how loyal we tend to be towards a brand, how often and how much do we buy, what price point we can be comfortable with, how ready we are to buy the product in the first place, and for whom we typically buy the product. To get insights about customer behavior, observation and qualitative research methods are most useful. To determine how many people behave in a particular way, surveys may still be the best tool.

importance of Market Segmentation

The importance of Market Segmentation is that it allows a business to precisely reach a consumer with specific needs and wants. Buyers in any market differ in their wants, resources, locations, buying attitudes, and buying practices. companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs. Segment 7 Segment 1 Segm

Geographic Segmentation

Total markets are into cities, regions, rural and urban areas based on location. -The physical location of a market includes the general characteristics of the location, factors such as climate, traffic conditions, cultural characteristics that are inherited in a geographic area, livelihood opportunities and population density.

Psychographic Segmentation

market is divided based on mental and emotional characteristics of what the customers think and believe in. Their needs, wants, lifestyles, attitudes, personalities, social classes and other variables should be considered. - how consumers see and feel about themselves, hence, psycho or "of the mind". It includes elements such as social class, lifestyle and personality. If you are segmenting the market by whether or not they are adventurous, idealistic, or how they feel about a particular issue or who they aspire to be, then these are all factors that reside primarily in people's minds. Psychographic data is not captured by the National Statistics Office ( NSO),so the way to determine how many people fit into a particular Psychographic profile is generally through primary research methods such as surveys.