Market segmentation

Preface 3
1. The importance of market segmentation 4
2. Marketing complex 5
3. Segmentation definitions 6
4. Segmentation criteria 7
5. Customer/user characteristics 8
5.1 Consumer markets 8
5.2 Industrial Goods Markets 9
6. Product segmentation 10
6.1) Segmentation by Benefit. 10
6.2) Vendor Segmentation 10
6.3) Contribution Targets 11
7. Segmentation techniques and product positioning 12
7.1) Attribute Sets 13
Market example 14
7.2) Product Positioning and differentiation 15
8. The validity and viability of market segmentation 16
Customer Profile Form 17
Resources 18
Preface
Segmentation is important as buyers have unique needs and wants. In segmenting a market, marketers look for broad classes of buyers who differ in their needs. There is no one right way of segmenting markets. A marketer has several bases available to him/her for the segmentation of markets.
It is the division of a heterogeneous market consisting of buyers with different needs and wants, into homogeneous segments of buyers with similar needs and wants. Therefore, the segments are heterogeneous between (ie. all the segments are different, eg. one segment all males, one segment all females) themselves, but homogeneous within (eg. within the male segment, all buyers are male; within the female segment, all buyers are female).
Market segmentation is the division of a market into distinct groups of buyers who might require different products or marketing mixes (Kotler et al, 1994).
The aim of our paper is to describe what exactly segmentation is, what are segments in the market and how to segment market.
The goals of our paper are:
1. Present concept of segmentation.
2. To find out what segments are in the market;
3. To ascertain how to segment a market;
The method of our paper is literature analysis.
1. The importance of market segmentation
Market segmentation means the analysis of a particular market demand on the basis of its constituent parts, so that sets of buyers can be differentiated. It is an important input to marketing planning because it can...

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