Market segment and its objects. Product market segmentation process

17.10.2019

Segmentation (segmentation) of the market is its division into separate segments, which differ in the sales opportunities of the manufacturer's goods.

A market segment is a large group of buyers identified by some characteristics (similar needs, purchasing power, region of residence, consumer priorities and habits). A market segment is made up of consumers who respond in the same way to the same set of marketing incentives. A market segment is a part of the market, a group of consumers of products that have certain similar characteristics and are significantly different from all other groups and market sectors.

The purpose of segmentation is to identify relatively homogeneous needs for a product (service) for each group of buyers and, in accordance with this, to orient the product and marketing policy of the organization.

The highlighted segments should be:

1. specific, i.e. have a clear set of needs and respond in a similar way to the proposed product (service);

2. sufficiently significant in size;

3. available for marketing activities;

4. quantitatively measurable;

5. used for a long period of time.

Types of segmentation depending on the nature of its implementation, on the type of consumers of goods / services:

  • macro-segmentation of the market - markets are divided by regions, the degree of their industrialization, etc.;
  • microsegmentation - the formation of consumer groups (segments) of one country, region according to more detailed characteristics (criteria);
  • depth segmentation - the segmentation process begins with a wide group of consumers, and then gradually deepens it depending on the classification of the final consumers of a product or service;
  • segmentation in breadth - starts with a narrow group of consumers, and then expands depending on the scope and use of the goods;
  • preliminary segmentation - the initial stage of marketing research, focusing on the study of the maximum possible number of market segments;
  • final segmentation is the final stage of market analysis, which is regulated by the capabilities of the company itself and the conditions of the market environment.

The task of the first stage, called macrosegmentation, is to identify "product markets", while the second stage, called microsegmentation, aims to identify within each previously identified market "segments" of consumers.

Target market segment - one or more segments of a specific market, the most significant for marketing activities:

1. concentration on a single segment, decide to serve only one segment of the market (a group of middle-aged people);

2. focus on consumer needs; the company can focus on satisfying any one customer need (for all types of customers - one product);

3. focus on a group of consumers;

4. maintenance of several unrelated segments; a company may decide to serve several market segments that are loosely connected, except that each of them presents an attractive opportunity for the firm;

5. coverage of the entire market; a company may decide to manufacture the entire range in order to serve all market segments.

When choosing target segments, company leaders decide whether they will concentrate their efforts on one sector or on several, on a single product (market) or on the mass market. A firm may choose to address the entire market or focus on one or a few specific segments within its core market.

Of particular importance in marketing activities is the so-called target marketing. This is the process of market segmentation, selection of the target (target) segment (s) based on its results, and positioning on the selected target segment of the company's product by developing and implementing an appropriate marketing mix. Target marketing is the differentiation of market segments, the choice of both or several segments and the development of goods and complexes.

Stages of target marketing:

  • Market segmentation – determination of the principles of market segmentation, compilation of profiles of the resulting segments.
  • Selection of target market segments - assessment of the degree of attractiveness of the obtained segments, selection of one or more segments.
  • Product positioning on the market - the decision to position the product in each of the target segments, the development of a marketing mix for each target segment.

The choice of market segmentation criteria, i.e., the parameters by which the market is segmented.

1. Quantitative boundaries - the capacity of the segment - how many goods and what value can be sold on it, how many real and potential consumers, what is the area of ​​​​the segment, what resources will need to be used to work in this segment.

2. Availability of the segment - the ability of the enterprise to obtain distribution and marketing channels for products, conditions for storage and transportation of products to consumers in this segment.

3. Information saturation of the segment - is it possible to obtain the necessary information to create a data bank on the segment, are there any closed zones.

4. The materiality of the segment - determining how realistically a particular group of consumers can be considered as a market segment, how stable it is in terms of the main unifying features.

5. Profitability of the segment - it is determined how profitable the work in this segment will be for the enterprise.

6. Compatibility of the segment with the market of the main competitors - to what extent are the main competitors ready to give up the selected market segment, to what extent does the promotion of products affect their interests?

7. Protection from competition - the management of the enterprise must evaluate its ability to withstand competition with possible competitors.

8. Efficiency in the selected segment - checking whether the enterprise has the proper experience in the selected segment, checking how engineering, production and sales personnel are ready to effectively promote the product in this segment.

At the macro-segmentation level, only general characteristics are taken into account, especially when it comes to industrial markets. Consumer products often require more subtle criteria such as age groups, benefits sought, buying behavior or lifestyle. Their determination is the task of microsegmentation.

Technologies. Here, various technological know-hows are considered that provide the performance of various functions. For example, paint or wallpaper for home interior decoration function, road, air, rail or sea for international transport of goods, bituminous or plastic films for roof impermeability function, X-ray, ultrasound and computed tomography for medical diagnosis function, etc.

Functions or combinations of functions. These are the needs that a product or service must satisfy. Examples of functions are: interior decoration of dwellings; international cargo transportation; roof waterproofing; corrosion protection; teeth cleaning; deep and subsurface drilling; medical diagnostics, etc. Features can also be defined as sets of benefits sought by different consumer groups.

Classification features: age, marital status, level of education, income level, attitude to a new product (service), lifestyle, social status, etc.

1. geographic segmentation criterion (region, districts, population density, climate);

2. demographic, socio-economic (sex, age, family size, family life cycle stage, education level, income level, occupation, religious beliefs, race, nationality, social status (top - top management), average (entrepreneurs, managers, independent workers: lawyers, journalists, teachers, employees and workers, working pensioners), lower (non-working pensioners, low-skilled workers, unemployed). Needs and preferences, the intensity of consumption of a product are often associated with demographic characteristics. They are easier to measure;

3. psychographic criterion - social class, temperament, personality type (addicted nature, lover to act "like everyone else", authoritarian nature, ambitious nature), lifestyle (sedentary, nomadic);

4. Behavioral - the reason for making a purchase (ordinary purchase, special case), user status (non-user, former user, potential user, novice user, regular user), consumption intensity (weak consumer, moderate consumer, active consumer), degree of commitment (unconditional adherents, tolerant, fickle, wanderers), by the desired benefits (quality, service, economy), by the speed of reaction; according to the degree of need (strong, low, medium); by the degree of readiness to buy (ignorant, informed, informed, interested, willing to buy, intending to buy); according to the level of purchase intensity (regular, irregular), attitude towards the product (enthusiastic, positive, indifferent, negative, hostile).

Marketing segmentation of the market is subject to the strategic goals of the commodity producer and is aimed at:

  • increase in market share;
  • mastering new markets;
  • weakening the position of competitors;
  • maintaining its positions in the most important markets, etc.

The most used methods in segmentation are:

1. Method of groupings. It consists in the sequential breakdown of a set of objects into groups according to the most significant features. the entire underlying market is divided into groups in stages - at each stage of sequential splitting, only one segmentation criterion is used.

2. Method of multidimensional classification ("tabular"). Classification is carried out according to the complex of analyzed features simultaneously. The underlying market is divided into groups of consumers at once according to several simultaneously used segmentation criteria. The results obtained are presented in the form of a table.

Based on the results of segmentation, “customer segment profiles” should be obtained. These are the respective descriptions of each of the resulting consumer groups. For example, “the profile of the segment of consumers of French perfumes” may sound like this: these are young ladies with an income level per family member of at least 24,000 rubles / month, with an active lifestyle, with high brand loyalty and an average propensity for risky purchases ... ".

After identifying market segments, it is necessary to evaluate their attractiveness and select one or more segments for development. Criteria for assessing the attractiveness of the segment: the size and rate of change of the segment; structural attractiveness; goals and resources of the organization itself.

Target market (basic) - selected on the basis of segmentation, the most important and promising segment of the commodity market for a commodity producer. Actions of the organization when choosing target segments:

1. Concentrate efforts aimed at the sale of one product (service) in one segment.

2. Offer one product (service) to all market segments.

3. Offer all goods (services) to one market.

4. For some selected segments, offer different products (services).

5. Do not take into account the results of segmentation and supply all manufactured goods (services) to the entire market.

Positioning is the development of a product (service) and the creation of an image that, in the mind of the buyer, would compare favorably with competing products. Positioning is the logical continuation and completion of the market segmentation process and the starting point for detailed planning and programming of the marketing mix.

The purpose of positioning is to help potential buyers distinguish a product from among its analogues-competitors on any basis and give preference to it when buying. Determine the possible place of the product on the market now and in the future. Strengthen the competitive position in a specific market segment by creating preferential incentives for a potential buyer to purchase it.

The main approaches to product positioning are based on:

1) on certain advantages of the product (service);

2) to meet specific needs or special uses;

3) with the help of a certain category of consumers who have already bought a product (service), or by comparison;

4) with the help of stable representations.

Options for determining the organization of its market position:

  • positioning yourself next to a competitor and starting to compete for market share.
  • creation of a product of market novelty, with the help of which it is possible to fill the existing "gap" in the market in the absence of competition.

Source - Marketing: teaching aid / comp. I.V. Ilyichev. - Ulyanovsk: UlGTU, 2010. - 229 p.

Market segmentation in marketing is a set of actions aimed at dividing the consumer into different groups, they are also market segments. Such a policy is carried out by many analytical departments or marketing departments in large organizations. Segmentation allows you to more clearly understand which consumer should be directed to advertising, and, accordingly, what types and methods of advertising should be used. And although segmentation is carried out mainly only by large companies, it is useful to absolutely all firms, regardless of the size and direction of activity. You can read more about what marketing is in the article:

Thanks to market segmentation in marketing, the entire mass of potential consumers is divided into groups according to different criteria. For example, it can be age, gender, nationality, etc. Moreover, each of these groups receives a certain status. There are three such statuses:

1. Segments with a priority consumer. As you might guess, all members of this group are the main customers of the company that conducts segmentation. For example, for car manufacturers, these are middle-aged people (30-40), and for manufacturers of women's cosmetics, girls and women under 40-50 years old. Of course, the data is usually inaccurate, but it is enough to determine the main direction of marketing.

2. Segments with an impossible consumer. This group is the opposite of the first. Under no circumstances will its representatives use your services or they will, but in small volumes. An example is black caviar for low-income people or cheap clothes for rich members of our society.

3. Alternative segments. Representatives of these groups, for the most part, do not use services of a certain kind, but they can use them with proper marketing. Many marketers classify such people as the second type of segments, but in fact, they can bring significant profit. Just think that there is a mass that, under certain circumstances, can start buying goods from you, while ignoring your competitors, because it was you who attracted them. For example, why not run a jewelry marketing campaign to young people, or try to sell computer games to adults. To achieve a positive result, you need to conduct really professional marketing, but if everything works out, your income will increase significantly.

Why is market segmentation important in marketing?

1. Directed marketing is usually much more effective than general marketing. If you know who your main consumer is, then you will only do the advertising that has the greatest impact on him. So, for example, it is better to involve young people through social networks, and older people through newspapers, magazines and TV advertisements.

2. In addition to efficiency, targeted marketing also has a better price. You only pay for the ads that your potential customers read, while with general advertising you are wasting a lot of money. If your main client is teenagers, then why pay for a commercial between Wait for Me and the soap opera Wedding Ring?

3. Any company sooner or later conducts market analytics in order to improve work efficiency. So it's much more convenient if you know who buys your product. Then you just have to analyze the preferences of a certain group of people, and not try to please absolutely everyone.

4. Knowing who uses your services, you can determine why this is happening. And knowing the answer to this question, you will understand what needs to be done to increase sales efficiency.

Segmentation is a complex system!

As a rule, when segmenting the market in marketing, it is not enough to define a group of potential consumers by one criterion. You need to take into account several characteristics at once and determine the segment you need more accurately. For example, these may be elderly males with low incomes or middle-aged women who are on a business trip. In this case, you do not have to choose one group at all. Basically, large companies have dozens of such specialized segments that marketers work with. For example, the tenants of an inexpensive apartment can be young students, employees of firms with average incomes on a business trip, young families with average incomes, etc.

Statistics are an important element of segmentation!

Without a large amount of statistical data, it is impossible to carry out normal segmentation. As a rule, there is a lot of information in the public domain about what product or service is popular among a particular population group. If there is no data of interest to you, you will have to conduct research yourself. The best option for this is social surveys. They won't cost you a lot of money to run, and the results will be fresh and relatively accurate. Many organizations post opinion polls on their official website or ask customers to fill out a questionnaire. Having received the necessary statistical data, you can easily segment and select groups of potential consumers.

What are the segment groups?

In modern marketing, there are many groups among the population, and no one forbids entrepreneurs to create new ones. Following are the main ones:

1. The most traditional classification of the population is by age. You can single out young people, middle-aged people and the elderly, or you can decompose the entire society into a larger number of age groups. As a rule, over the years, people's preferences change, just like their income, so most companies segment the consumer market first of all by age.

2. The division of the population depending on gender is also quite popular among marketers. So, men are unlikely to buy women's cosmetics or clothes, and women will not be regulars in hardware stores or bookmakers.

3. Revenue is an important part of any segmentation system. If a person receives little, then there is no point in trying to sell him an expensive car or a precious ring. Conversely, if a person earns a lot, then you do not need to attract him with sales and five percent discounts on discounted goods. Selling Zhiguli or cheap jewelry to such people will also fail.

4. A person's occupation often determines his tastes. So, businessmen prefer to dress in solid business tuxedos, which cannot be said about the workers at the factory. If these are education employees, then they will be regulars in stationery and bookstores.

5. The physique of a person is an important characteristic for manufacturers and distributors of clothing. Statistical data of this kind can be found in the public domain, and they are constantly updated as a result of scientific research. Assessing which people are more in a particular region, you should plan the volumes of each of the sizes of a particular clothing.

6. Having the statistics of human tastes and preferences, you can conduct really competent and effective marketing. Unfortunately, obtaining such information is very difficult. We will have to conduct mass opinion polls, and it is not always possible to achieve an objective result, because sometimes people themselves do not understand what they want.

7. Another important indicator for segmentation is the permanent place of residence of a person. If he came from afar to rest, then he is a potential consumer of apartment landlords and souvenir shops. But a person who permanently lives in a particular city is unlikely to buy fridge magnets with the image of the sights of this very city.

Segmentation requires imagination!

The number of options for dividing into groups depends only on your imagination. The population can be classified according to completely different criteria that matter only in your field of activity. For example, you can divide people into those who wear watches and those who do not wear them. The bottom line is that when sewing shirts for the first, you can’t make the button on the sleeve fasten too tightly, because in this case a person will not be able to see the time without unbuttoning it. And there are a lot of options, believe me.

Market segmentation is the process of dividing the market (consumers) into groups according to certain characteristics. The main purpose of this action is to study the reaction of a particular group to a particular product, as well as the choice of the target (main) occupies a dominant position in any marketing research of the company.

What is market segmentation for?

Any company works for its customers. Naturally, they all differ in one way or another from each other. Market segmentation is the process of highlighting certain parameters that distinguish one group from another. One buyer from another can be distinguished by his place of residence, habits, religious views and even attitude to life. Taking into account all these differences, the company can produce different products for each segment. Each group is naturally different from each other. One of the differences is their number. Many firms focus their attention only on the largest group. While there are quite a few companies that focus on one bottleneck allows them to avoid a lot of competition and have loyal customers. Segmentation provides an opportunity to study your customers better, as well as identify which groups do not use the services of a particular company. Thus, market segmentation is in the activity of any company. This phenomenon is based on certain principles.

Principles of market segmentation

Segments can differ according to several criteria:

  1. Geographically. Consumers can be divided into urban and rural populations, as well as by place of residence - by regions, cities and even countries.
  2. On a demographic basis. The most common is the division of potential customers by age, income level and marital status. Among the additional: religion and
  3. On a psychographic basis. The division of consumers is carried out on the basis of the characteristics of a particular person. There are various methods for determining the psychographic type of a person, according to which the market is segmented. Example: a person can be attributed to one of two groups - to psychocentrics or allocentrics.

Among other signs, consumers can be distinguished by their attitude to products, by consumption style and by personal characteristics.

How to select segments

The choice of a particular product can be influenced not only by one age of consumers, but also, for example, by income level or geographical location. Therefore, the more criteria will be allocated when studying consumers, the more clearly the whole situation on the market will be visible. At the same time, a large number of signs significantly complicates the situation. Simply put, the more segments, the fewer consumers in each group. How many segments to allocate and by what parameters depends on the individual characteristics of the enterprise.

Thus, market segmentation is a process that must follow a certain pattern, depending on the goals of the enterprise.

One of the main areas of marketing activity is market segmentation, which allows the company to accumulate funds in a certain area of ​​its business. To date, in the economic literature, the concepts of the target market and the target segment are quite clearly defined, the selection of which is the main goal of market segmentation.

The target market is the potential market of the firm, which is defined by a set of people with similar needs for a particular product or service, sufficient resources, and the willingness and ability to buy.

A target segment is a homogeneous group of consumers in a firm's target market that share similar needs and buying habits with respect to the firm's product.

Thus, market segmentation is the breakdown of the market into clear groups of buyers, each of which may require separate products and / or marketing mixes.

Segmentation goals.

Any activity of people pursues certain goals, including market segmentation. There are three purposes of segmentation. The first follows from the fact that the company is not able to master the entire market, and is forced to be content with only part of it. Having singled out this part through segmentation, she gets the opportunity to purposefully concentrate her efforts on those groups of buyers that will be more attractive to her.

The second goal is due to the fact that the identified group of buyers (target market) may be partially inaccessible to the company due to the actions of competitors. An analysis of the capabilities of competitors in the structure of selected segments makes it possible to identify those in which competitors are either less active or buyers are skeptical about their products. These segments, if the company does not want to fight competitors, will be the most preferable for it.

The third goal of segmentation is reasonable in cases where the market does not have a complex multidimensional segment structure. Its essence lies in the fact that if there are few segments, the company should strive to ensure that it has its presence in each of them, i.e. offer each segment a special, most suitable product model for it.

In other words, the purpose of segmentation is to single out one or more target groups of consumers, for which the entire range of marketing activities is "sharpened" - from product development and branding to the choice of tone and media of marketing communications. The purpose of segmentation is to increase the company's profit by increasing competitiveness in a particular segment.

Several important conclusions can be drawn from this:

  • 1. To assess the feasibility of segmentation, it is necessary to be able to assess the demand in the selected segments.
  • 2. The segment must be large enough and must exist for a long enough time that investments in strengthening the competitiveness in this segment lead to a corresponding increase in sales.
  • 3. The profitability of working with the segment should be sufficient. That is, the costs of logistics and communications with the segment should lead to the desired profit.

Actually, it is these conclusions that underlie the principles of effective segmentation formulated by the classics.

Market segmentation is the activity of identifying potential groups of consumers of a particular product of an enterprise.

Rice. 1.

Such a market segmentation scheme is of a general nature and can be applied when planning various areas of marketing activity.

Note that the above scheme of market segmentation corresponds to the approach proposed by Lambin and takes into account macro-segmentation to identify the base (otherwise, target) market and micro-segmentation to determine the target segment of the enterprise. This scheme, in turn, is a development of segmentation schemes proposed in other studies.

Segmentation principles.

The principle of difference between segments - the main goal of segmentation is to obtain groups of consumers that differ from each other. Accordingly, each resulting segment must have a set of unique characteristics.

The principle of similarity of consumers in the segment is the homogeneity of potential buyers within the segment in terms of the goals of segmentation tasks. The segments resulting from segmentation should be fairly homogeneous - differences between consumers within a segment should be less significant than differences between segments.

The principle of large segment size - target segments must have sufficient potential capacity to be of commercial interest to the company. It is necessary to find a balance between taking into account all significant factors, on the one hand, and the size and number of resulting segments, on the other.

To conduct successful market segmentation, it is advisable to apply the five principles tested by practical activity:

  • 1. differences between segments
  • 2. consumer similarities
  • 3. large segment size
  • 4. measurability of consumer characteristics
  • 5. reachability of consumers.

The principle of distinction between segments means that as a result of segmentation, groups of consumers that differ from each other should be obtained. Otherwise, segmentation will be implicitly replaced by mass marketing.

The principle of similarity of consumers in the segment provides for the homogeneity of potential buyers in terms of purchasing attitudes towards a particular product. Consumer similarity is necessary so that an appropriate marketing plan can be developed for the entire target segment.

The requirement for a large segment size means that the target segments must be large enough to generate sales and cover the costs of the enterprise. When assessing the size of a segment, one should take into account the nature of the product being sold and the size of the potential market. So, in the consumer market, the number of buyers in one segment can be measured in tens of thousands, while in the industrial market, a large segment can include less than a hundred potential consumers (for example, for cellular or satellite communication systems, for consumers of power engineering products, etc.).

The measurability of consumer characteristics is necessary for targeted field marketing research, as a result of which it is possible to identify the needs of potential buyers, as well as to study the reaction of the target market to the marketing actions of the enterprise. This principle is extremely important, since the distribution of goods "blindly", without feedback from consumers, leads to the dispersion of funds, labor and intellectual resources of the seller.

The principle of reachability of consumers means the requirement for the availability of channels of communication between the selling firm and potential consumers. Such communication channels can be newspapers, magazines, radio, television, outdoor advertising media, etc. Reachability of consumers is necessary for organizing promotional campaigns, otherwise informing potential buyers about a particular product: its characteristics, cost, main advantages, possible sales, etc.

The basis of the market segmentation procedure, along with the application of segmentation principles, is the reasonable choice of the appropriate segmentation method.

Approaches to market segmentation.

There are two approaches to market segmentation. In the classical approach, segmentation of the entire market is carried out. That is, the market is divided into segments in accordance with the maximum number of selected criteria. This method allows you to cover the entire market and cover all segments with one analysis. It is necessary to consistently deepen segmentation with analysis at each stage. Thus, the analysis is carried out to the required depth and the accuracy of the analysis is not lost.

The second approach is necessary if it is not possible to segment the entire market or it is impractical due to insufficient resources to process all possible segments. Take, for example, the ice cream market. No one interferes, having found out the difference in the behavior of representatives of any particular segment, to single it out. If the volume of demand in it can be determined, thanks to the available (or possible to obtain) data. Let it be at least children of 10-15 years old who prefer to play pirates. If it is possible to determine the potential demand that they can provide, and estimate how many of them will prefer the new brand of ice cream "young pirate". Why not release it for sale. This is a creative approach that can be used for some markets and complements the full segmentation method.

To implement segmentation, a company needs to test segmentation options based on different variables, one or more at a time, in an attempt to find the most useful approach to consider the structure of the market. For this, factor analysis is used, which examines the influence of various factors on the result and allows you to choose exactly those factors that have the maximum impact on the final result. All approaches to market segmentation can be divided into two types:

Unordered selection of segmentation criteria. The choice of segmentation criteria is carried out arbitrarily. It is used in a situation where it is difficult to build a hierarchy of segmentation criteria, or there is not enough data to build it.

multistage approaches. Building a hierarchical system of criteria based on the assessment of importance for segmentation. There are two or more levels of criteria through which segmentation is carried out. An example is the micro-macro model proposed by Wind and Cardoza (1974). At the first, macrostage, general factors are used - the demographic characteristics of the population, geographical location, consumption activity, etc. The microstage consists in defining segments within macrogroups based on the characteristics of the decision makers. Another example is the nested model of Bonom and Shapiro (1983).

Market segmentation is necessary for market-oriented companies for the following main reasons: different groups of people have different needs and therefore the company needs to adapt the product for each group; the company must position its products in a specific way for each group; the company must select the appropriate price for each of the groups; some groups may require special sales channels.

On sites (segments) on various signs.

segmentation method is to identify in the market groups of buyers with similar purchasing needs and characteristics.

Benefits of using the segmentation approach.

By identifying and defining these types of customer groups, an enterprise is better able to develop a product or service that meets the needs of these groups.

This method is implemented through the creation of a new product and a new brand, based on a promotion campaign aimed at attracting the attention of the target segment.

Decisions on pricing and on the distribution system are also made taking into account the interests of a particular segment of buyers.

Rice. 8.1 Variants of the enterprise segmentation approach

It is possible to distinguish a number factors of attractiveness of segments for the enterprise. First of all, this segment size. The segment must be large enough in terms of the number of consumers, as well as in terms of purchasing power, in order to ensure a profitable sale. A segment consisting of a small number of buyers with low purchasing power will not be profitable for a company selling a large volume of goods. However, it should be noted that some small businesses target these markets, which are too small for larger organizations, and successfully operate in them. The next important factor is possibility of identification. An enterprise must be able to identify segment members and define a segment profile. It is necessary to take into account the factor compliance. The characteristic of the selected segment should correspond to the main characteristics of the proposed product or service. For example, social class, once used as a segmentation variable across a range of consumer goods industries, is now less important. Practice has shown that income and lifestyle are more useful segmentation criteria. And the last thing to consider is the factor accessibility. An enterprise must have access to its chosen market segment in order to fulfill its objectives.

There are three main options for a segmentation approach to the market (Fig. 8.1). Different segmentation approaches require the development of different marketing programs. On fig. 8.2 the main types of market coverage by marketing programs are presented.

Rice. 8.2 Types of market coverage

Mass Marketing(undifferentiated) - this is a situation in which the company ignores the segmentation differences of consumers in the market or when the market is more or less homogeneous. When applying a mass marketing strategy, an enterprise believes that its marketing efforts can be used most effectively by focusing efforts on the entire population, throughout the territory, using the same system of communication, distribution and sales promotion. However, only those enterprises that can afford it can effectively use this strategy.

Mass marketing is also used if the company can ignore the difference in segments and turn to the entire market at once. Efforts are concentrated on the common needs of all consumers, and the sale of a mass product is maximized. Marketing costs will be relatively small.

The next option for market coverage is product-differentiated marketing. An enterprise can choose several segments as its target. This is due to the difficulty of conducting simultaneous marketing on each individual segment. This approach is often used if the company is focused on the entire market or on a significant part of its segments. In this case, there is an increase in the variety of products produced. More marketing costs. Multiple segmentation is the work of an enterprise with the entire market, but taking into account differences in segments.

In the third case, segmentation is carried out, and the company consciously chooses to work in one of the market segments. This concentrated marketing.The simplest strategy is to focus on a single segment and firmly position the enterprise's product within that segment. This method is often used in case of limited size of the potential of the enterprise (small company). This approach is often described as "niche" marketing, especially when the target segment is only a small part of the total market. Orientation towards the release of goods adapted to the requirements of specific consumer groups is often used in a saturated market. It is based on market segmentation.

Table 8.1 Segmentation Criteria

Criteria

Characteristics

Psychographic criteria:

psychological or sociological composition of buyers

  • social class
  • personal factors
  • Lifestyle
  • behavioral principles
  • occasion
  • desired benefits
  • user status

Demographic Criteria:

characteristics that can be found in the analysis of statistical data obtained from the population census

  • age
  • family life cycle
  • family size
  • house type
  • the level of education
  • cultural background
  • income
  • occupation
  • religious beliefs
  • nationality

Geographic criteria:

where the buyer lives, works and shop

  • a country
  • legal restrictions
  • inflation rate
  • region
  • area location
  • transport network of the region
  • region's business structure
  • media accessibility
  • level of competition
  • regional development dynamics
  • region size
  • number
  • population density

The justification and choice of criteria for segmenting a particular market depends on the goals of segmentation by the enterprise, market characteristics, consumer characteristics, and a number of other factors.

Criteria for corporate market segmentation:

1. Size of corporate buyers:

80:20 Pareto - high risk of having large buyers with simple current work. Large buyers are not segmented, individual marketing is with them.

20:80 What to do with such buyers? Segmentation and consideration of the attractiveness of cooperation are necessary.

2. Growth potential of buyer firms and/or their markets. 3. Segmentation of industrial markets using the standard classification of industries:

OKP (All-Russian classifier of enterprises);

SIC (Standard Industry Classification).

Explore the various ways in which a product or service can be used by all enterprises in the industry, determine the potential of a given consumer situation in terms of long-term growth and the competitiveness of substitutes for each consumer situation.

The study of representatives from the regions based on contacts, including by region.

Segmentation options by code:

  • product development;
  • training of trade personnel;
  • supply services;
  • topics of advertising messages and distribution channels;
  • organizing the work of sales agents.
4. Segmentation by the method of making purchases (centralized/decentralized).

Two points of view: technical, consumer.

4.1. By the desired benefit (and not by the characteristics of the product), for example, a copier:

  • rapidity;
  • copy quality;
  • low cost per copy;
  • simplicity;
  • image;
  • is there such a business;
  • compactness.

4.2. By sensitivity to marketing methods.

4.3. By sensitivity to the use of trade media.

4.4. According to the description of procurement procedures and algorithms.

Purchasing center - for each position in the center there is a mix.

5. Segmentation by the propensity to cooperate or the cheapness of purchases from different groups (habits). 6. Price sensitivity:
  • closed auctions;
  • the significance of the costs;
  • price quality;
  • economic circumstances;
  • ease of replacement.
7. Segmentation by consumer perceptions/awareness of the product/company/brand:
  • not aware of the product / brand;
  • aware, but not seriously considered;
  • knowledgeable but unavailable sales and information channels;
  • aware, but habit or inertia interfere with the purchase;
  • aware, but unwillingness to take risks interferes;
  • aware, but refused due to lack of confidence in the quality;
  • aware, but refused because of the high price;
  • tried but not satisfied;
  • tried, but not profitable;
  • previously used but no longer needed.

Segmentation principles

Markets are made up of buyers, and buyers differ from each other in a variety of ways: needs, resources, geographic location, buying attitudes, and habits. Any of these parameters can be used as the basis for market segmentation.

Geographic segmentation principle

Assumes a breakdown of the market into different geographical units - states, states, regions, counties, cities, communities. The firm may decide to act:

  • in one or more geographical areas;
  • in all areas, but taking into account differences in needs and preferences determined by geography.
Demographic principle of segmentation

It breaks down the market into groups based on demographic variables such as gender, age, family size, family life stage, income level, occupation, education, religious beliefs, race, and nationality. Demographic variables are the most popular factors that serve as the basis for differentiating consumer groups. One of the reasons for this popularity is that needs and preferences, as well as the intensity of consumption of a product, are often closely related precisely to demographic characteristics. Another reason is that demographic characteristics are easier to measure than most other types of variables.

Psychographic segmentation

Involves dividing buyers into groups based on social class, lifestyle, and/or personality characteristics. Members of the same demographic can have vastly different psychographic profiles.

Behavioral principle of segmentation

Assumes the division of buyers into groups depending on their knowledge, attitudes, the nature of the use of the product and the reaction to this product.

Segmentation by socio-economic principle

It is a description of the people that form the segment, and not an analysis of the factors that explain the manifestation of this segment. The use of a socio-economic group of features is based on the hypothesis that it is the differences in socio-economic profiles that determine the differences in customer preferences. Socio-economic factors are used as indicators of needs.

Choosing one or another approach to segmentation, you can be guided by the following criteria:

  • the importance of the segment for the enterprise;
  • quantitative indicators (capacity of this market segment, market niche);
  • availability of development of the segment for the enterprise;
  • product profitability;
  • protection from competition (already won positions, a formed positive image of the enterprise);
  • possible efficiency of work in this segment in the future.


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