WHAT IS THE RELATIONSHIP BETWEEN MARKET SEGMENTS AND MARKET DEMANDS
What is market segmentation?
The process of splitting customers, or potential customers, in a market into different groups, or segments, within which customers share a similar level of interest in the same or comparable set of needs satisfied by a distinct marketing proposition*
- To easily segment your market, you need to pay proper attention to this 4 Ps
- product features,
- promotion and
- place (service and distribution
- Market segmentation, is about understanding the needs of customers and, therefore, how they decide between one offer and another. This insight is used to form groups of customers who share the same or very similar value criteria. A business is then able to determine which groups of customers it is best suited to serve and which product and service offers will both meet the needs of its selected segments thus keeping the largest share of the customer’s wallet.
- The primary objective of segmentation, therefore, must be how to win and retain the customers you want to serve.
CALL TO ACTION:
Attempt to segment your customers using the four Ps
Draw a table and divide it into four rows, then break down the different segments of your market using the criteria stated in the text.
What findings do you get? Tag 2 business women who need to do this exercise as well. And drop your comments as well.