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What is segmentation? Product market segmentation process

Segmentation of a market is its division into separate segments that differ in the sales capabilities of the manufacturer’s goods.

A market segment is a large group of buyers identified by certain characteristics (similar needs, purchasing power, region of residence, consumer priorities and habits). A market segment consists of consumers who respond in the same way to the same set of marketing incentives. A market segment is a part of a 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) in each group of buyers and, in accordance with this, orient the organization’s product and sales policy.

The selected segments should be:

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

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:

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

The goal of the first stage, called macro-segmentation, is to identify “product markets,” while the second stage, called micro-segmentation, aims to identify consumer “segments” within each previously identified market.

Target market segment – ​​one or more segments of a specific market that are most significant for marketing activities:

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

2. orientation to consumer needs; the company can focus on satisfying any one consumer need (one product for all types of buyers);

3. orientation to a group of consumers;

4. servicing several unrelated segments; a company may decide to serve several market segments that are loosely related to each other, except that each of them represents an attractive opportunity for the company;

5. coverage of the entire market; a company may decide to produce a full range to cater to all market segments.

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

The so-called targeted marketing is of particular importance in marketing activities. This is the process of segmenting the market, selecting the target segment(s) based on its results and positioning the company's product in the selected target segment by developing and implementing an appropriate marketing mix. Target marketing – differentiation of market segments, selection of one or more segments and development of products and complexes.

Stages of targeted marketing:

  • Market segmentation – determining the principles of market segmentation, compiling profiles of the resulting segments.
  • Selection of target market segments - assessment of the degree of attractiveness of the resulting segments, selection of one or more segments.
  • Positioning of a product on the market - a decision on the positioning of a product in each of the target segments, development of a marketing mix for each target segment.

Selection of market segmentation criteria, i.e. parameters by which market segmentation is carried out.

1. Quantitative boundaries - the capacity of the segment - how many goods and at what value can be sold on it, to how many actual 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 a segment - the ability of an enterprise to obtain distribution and sales channels for products, conditions for storing and transporting products to consumers in this segment.

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

4. Segment importance – 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 characteristics.

5. Segment profitability - determines how profitable 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 sacrifice the chosen market segment, to what extent does the promotion of products affect their interests?

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

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

At the macro-segmentation level, only General characteristics, especially when it comes to markets for industrial goods. Consumer products often require more nuanced criteria such as age groups, benefits sought, purchasing behavior or lifestyle. Determining them is the task of microsegmentation.

Technologies. Various technological know-how that provide various functions are discussed here. For example, paint or wallpaper for the function of home interior decoration, road, air, rails or sea for the international transport of goods, bitumen or plastic films for the function of roof impermeability, X-rays, ultrasound and computed tomography for the function of medical diagnostics, etc.

Functions or combinations of functions. It's about about the needs that a product or service should satisfy. Examples of functions include: interior decoration of homes; international freight transport; 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 characteristics: age, Family status, level of education, income level, attitude towards a new product (service), lifestyle, social status, etc.

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

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

3. psychographic criterion – social class, temperament, personality type (addicted nature, lover of doing “like everyone else”, authoritarian nature, ambitious nature), lifestyle (sedentary, nomadic);

4. behavioral – reason for making a purchase (routine purchase, special occasion), user status (non-user, former user, potential user, novice user, regular user), intensity of consumption (weak consumer, moderate consumer, active consumer), degree of commitment (unconditional adherents, tolerant, fickle, wanderers), by the benefits sought (quality, service, savings), by speed of response; by degree of need (strong, low, average); by degree of readiness to buy (ignorant, aware, informed, interested, willing to buy, intending to buy); by level of purchase intensity (regular, irregular), attitude towards the product (enthusiastic, positive, indifferent, negative, hostile).

Marketing market segmentation is subordinated to the strategic goals of the product manufacturer and is aimed at:

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

The most used methods in segmentation:

1. Grouping method. It consists of a consistent breakdown of a set of objects into groups according to the most significant characteristics. the entire base market is divided into groups in stages - at each stage of sequential division only one segmentation criterion is used.

2. Multidimensional classification method (“tabular”). Classification is carried out according to a complex of analyzed characteristics simultaneously. The base market is divided into groups of consumers according to several simultaneously used segmentation criteria. The results obtained are presented in table form.

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

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

Target market (basic) – the most important and promising segment of the product market selected on the basis of segmentation. Actions of the organization when choosing target segments:

1. Concentrate efforts aimed at selling one product (service) in one segment.

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

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

4. Offer different products (services) for some selected segments.

5. Ignore 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 buyer’s mind, 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 analogue competitors on some basis and give it preference when purchasing. Determine the possible place of the product on the market at present and in the future. Strengthen competitive positions in a specific market segment by creating preferred incentives for potential buyers 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 purchased a product (service), or by comparison;

4) using stable ideas.

Options for an organization to determine its market position:

  • positioning itself next to a competitor and starting to compete for market share.
  • creating a product of market novelty, with the help of which you can fill the existing “gap” in the market in the absence of competition.

Source - Marketing: teaching aid/ comp. I.V. Ilyicheva. – Ulyanovsk: Ulyanovsk State Technical University, 2010. – 229 p.

The concept of “market segmentation” was first used by Wendell Smith in connection with the strategy of manufacturers that spread in the 50s in the United States, seeking to modify the quality characteristics of their products in accordance with the needs of various groups of potential consumers. This approach was born as a contrast to the mass marketing strategy, long time confessed by transnational corporations.

Use by entrepreneurs in their practical activities segmentation technology was to a certain extent facilitated by the discovery of Pareto's law (the 80/20 law), the conclusions of which are based on statistical research and according to which 20% of consumers buy 80% of a certain brand of goods, representing a generalized group of target consumers who, for certain reasons, are focused on this product. The remaining 80% of consumers purchase 20% of the product of a given brand and do not have a clear choice; they most likely make random purchases. The practical conclusion from this law is that entrepreneurs should focus their production and all marketing activities on this 20%. This strategy of marketing activity is called “shooting at targets,” and if a strategy based on a strategy of mass (total) marketing is used, it means that there is work for the entire market as a whole, and such a strategy is called “shooting at areas.” Theory and practice have shown that the first type of strategy, as a rule, turns out to be more effective.

Each manufacturer needs to find that segment, that group of consumers with the same type of reaction to marketing activities, which is included in this 20%, and it should be looked for not at random, but through market research. Therefore, market segmentation can be defined as a strategy by which the market is divided into segments (parts) that will be characterized by the same response to the activities of the marketing mix. The goal is to maximize penetration of these market segments instead of spreading efforts across the entire market.

Market segmentation is usually carried out in two stages, corresponding to different levels of market division:

Macro-segmentation - its goal is to identify “product markets”.

Micro-segmentation - consumer “segments” are identified in each of these product markets.

There are two main reasons for market segmentation:

  • - the only one for real advantageous position for any company in any market - a leader;
  • - the only way to become a leader is to choose the market segment (profitable segment) where this is possible.

Using segmentation from total number potential consumers, their specific types are selected, that is, market segments that present more or less homogeneous requirements for the product. It is these segments that the production and sale of goods should be focused on. Thus, a segment is a specially selected part of the market (a group of customers in the market) that has similar characteristics and responds in the same way to certain marketing efforts. It follows that within each market there are groups of customers with certain characteristics who are interested in your products or services to varying degrees. These groups of customers are called market segments.

Segmentation of the market for a product or service is multifaceted, i.e. produced according to the most different characteristics, dividing all potential consumers of a particular market into sufficiently large groups in such a way that each of them makes special, significantly different and sustainable requirements for a given product or service, in comparison with other consumers. Consequently, market segmentation is the activity of classifying consumers of goods produced and sold by an enterprise in accordance with the qualitative characteristics of their demand. In other words, by segmenting, an enterprise divides the market into separate segments, which, most likely, will be characterized by the same response to marketing incentives.

The main goal of market segmentation is to ensure targeting of the product being developed, produced (released) and sold. Through market segmentation, the basic principle of marketing is implemented, the essence of which is that the company builds its work on a combination of its interests with the interests of the market, focuses on the needs of the market when developing solutions, and achieves its goals by meeting its requirements.

Market segmentation is a complex process: on the one hand, a method for finding parts of the market and identifying objects (consumers) to which the marketing activities of an enterprise are directed; on the other hand, it is a management approach to the enterprise’s decision-making process in the market, the basis for choosing the right combination of elements of the marketing mix.

Market segmentation is a specific strategy for more rational and complete adaptation of the production of marketing actions to market consumers and customer requirements. This stage consists of isolating from the total mass of potential consumers of the company's products separate typical groups that present homogeneous requirements for the product and react equally to advertising, i.e. groups with the same consumer motivations, preferences and behavior. Each such group forms a certain market segment, focusing on which one or another program of action is carried out.

When segmenting a market, the following categories related to it are used, namely: market segment, market niche, market window.

A market segment is a group of consumers with the same reaction to the product (service) offered and marketing incentives.

Market niche - a market segment for which a given product or experience of an enterprise (company, firm) is most suitable.

Market window - a market segment not occupied by competitors, in which there are no means of satisfying needs that fully meet the needs of consumers.

When segmenting the market, an enterprise (company, firm) pursues the following goals:

  • - best satisfaction of the needs and requirements of people (maximum consideration of consumer preferences and their desires);
  • - increasing the efficiency of marketing strategies of an enterprise (company, firm);
  • - evasion of competition by moving to an untapped market segment (moving into segments free from competitors;
  • - optimization of enterprise (company, firm) costs;
  • - ensuring competitive advantages of a product (service) and an enterprise (company, firm).

The point of segmentation is not only and not so much to highlight any special groups of consumers, but to find those who now (or in the future) have different requirements for a given product. Considering the market as a heterogeneous structure that can change under the influence of both the consumer properties of the product and the composition of consumer groups in the market, it is possible to differentiate this structure. Segmentation acts as a means, a method of market differentiation based on studying and taking into account the individual needs of each group of buyers, due to which the market is transformed into a set of segments for which the corresponding product and marketing mix can be provided.

Market segmentation targets a narrow group of consumers (market segment) through a single, specialized marketing plan that is based on the needs of that segment. Market segmentation can maximize unit profits rather than total revenues by targeting one segment. It also allows an enterprise with few resources to compete with large enterprises in the markets.

Marketing development has gone through three stages.

Mass marketing. In mass marketing, a firm engages in mass production, distribution, and promotion of the same product to all customers at once.

Product-differentiated marketing. In this case, the seller produces two or more goods with different properties, different designs, different quality, and different packaging.

Targeted marketing. Products and marketing mixes are developed separately for each selected segment. With targeted marketing, segmentation becomes especially important because In this type of marketing, the seller makes distinctions between market segments, selects one or more, and develops products and marketing mixes for each of the approved segments. Currently, enterprises are increasingly moving from mass and product-differentiated marketing methods to targeted marketing, which helps sellers more fully identify existing marketing opportunities. For each target market, the seller can develop a product that that market needs. To effectively reach such a market, the seller can vary prices, distribution channels, and advertising efforts. This is done in order not to scatter marketing efforts (“shotgun shooting”), but to concentrate them on customers who are most interested in purchasing the product (“rifle shooting”).

Target marketing requires the following three main activities.

Market segmentation is the division of the market into clear groups of consumers, each of which may require separate products and (or) marketing mixes. the enterprise determines different ways market segmentation, compiles profiles of the resulting segments and assesses the degree of attractiveness of each of them.

Selecting target market segments - assessing and selecting one or more market segments to enter with your products.

Positioning a product on the market - providing a product with a competitive offer on the market and developing a detailed marketing mix.

All this is nothing more than planning a segmentation strategy. When carrying out all activities, it is necessary to take into account that the results of research into marketing activities, statistical processing of sociological information, both for the activities of manufacturing enterprises and trading companies, and consumers themselves, made it possible to derive a law called Pareto's law. Its meaning is that only 20% of consumers buy 80% of the products presented in this market segment (I wrote about it at the beginning of Chapter I). Of course, these numbers are not rigid, although this law is called 20/80, it could be 18 or 25%, but the essence of the law does not change. It applies to both consumer products and products for industrial purposes.

It should be especially noted that:

  • - market segmentation applies exclusively to consumers (buyers) of a certain type of product or service. A segment is always some special group. It does not matter whether we are talking about consumers of watches, computer-controlled machines or accounting consulting services;
  • - segmentation should not be confused with division of markets. The difference is obvious: the market is characterized by a special type of product (the market for tractors, televisions or washing machines). The segment makes demands on some special types, modifications of goods within a given type, since consumers of garden tractors, small-sized televisions or expensive automatic washing machines appear. Accordingly, a company can change its product strategy by working in different segments, but remain within the market that is well known to it. Entering a new market with all the accompanying difficulties is a completely different matter - from new technology to new distribution systems;
  • - multidimensionality, or the use of a whole series various characteristics for segmentation, of course, is not mandatory. Often, a segment can be based on one characteristic, for example, the level of income per family or the religious affiliation of the consumer. At the same time, market practice shows that competent multidimensional segmentation expands promising opportunities for almost any company;
  • - of course, segmentation is an attribute of markets of abundance (buyer's markets), since it is the struggle of firms for the buyer's money that forces them to penetrate deeper and deeper into the special needs of those who pay the money. For an economy in conditions of shortage (seller's market), naturally, “average goods” are characteristic, and segmentation is almost not used here. It must be remembered, however, that after the “transition period” a seller’s market can very quickly turn into a buyer’s market, that is, any business man and the company's marketing service in all cases must master the basics of market segmentation.

Signs and criteria of segmentation. In practice, it is important to distinguish between the signs and criteria of market segmentation.

A sign of segmentation is an indicator of the method of identifying a given segment in the market.

The segmentation criterion is an indicator of how correctly a company has chosen a particular market for activity. What criteria should be used to identify market segments? Practice has recorded the most famous ones. The success of an enterprise in competition largely depends on how correctly the target of a market segment is chosen.

When forming a market segment, the following criteria can be used:

  • - differences between consumers, allowing the segment to be united;
  • - similarity between consumers, which forms the stability of preferences of a given group of consumers for a product;
  • - availability of indicators to measure the characteristics and requirements of consumers and determine market capacity;
  • - the ability to withstand competition;
  • - sufficiency of sales volume to cover expenses and make a profit;
  • - accessibility of the segment for the enterprise (sales and transportation channels).

Quantitative boundaries - these include the capacity of the segment, that is, the answer to the question of how many goods and at what cost can be sold on it, to how many actual and potential consumers, what is the area of ​​the segment, what resources will need to be used to work in this segment. Based on these parameters, the enterprise must determine which production capacity should be focused on this segment, what should be the size of the sales network.

Availability of the segment - is it possible to obtain distribution and sales channels for products, is it necessary to reorient one’s own sales network, what is the situation with the availability of warehouses, stores, cargo processing points, conditions for storing and transporting products to consumers in this market segment. The enterprise must determine whether it has a sufficient number of distribution channels for its products (in the form of resellers or its own sales network), what is the capacity of these channels, whether they are able to ensure the sale of the entire volume of products produced taking into account the existing capacity of the market segment, whether the system is reliable enough delivery of products to consumers (are there roads and what kind, access roads, cargo processing points, etc.). The answers to these questions provide the enterprise management with the information necessary to decide whether it has the opportunity to begin promoting its products in the selected market segment or whether it still has to worry about forming a sales network, establishing relationships with resellers, and building its own warehouses and stores. .

Information saturation of the segment - is it possible to obtain the necessary market information to create a data bank for the segment, are there closed areas in the segment.

The importance of a segment is the determination of the strength of a selected group of consumers, whether it is falling apart, whether its needs in relation to the product being produced are stable; otherwise, you can enter a segment where competitors have a strong position, or offer a product with unclear address characteristics that will not be recognized by consumers. That is, determining how realistically this or that group of consumers can be considered as a market segment, how stable it is according to the main defining characteristics. In this case, the management of the enterprise will have to find out whether this market segment is growing, stable or declining, whether it is worth focusing production capacities on it or, on the contrary, they need to be repurposed for another market.

Profitability, profitability of a segment - as a rule, on the basis of this criterion it is determined how profitable it will be for an enterprise to work in a selected market segment. Typically, to assess the profitability of a segment, enterprises use standard methods for calculating relevant indicators; the assessment is carried out based on standard indicators: rate of profit, return on invested capital, the amount of dividends per share, the amount of growth in the total profit of the enterprise, depending on the specifics of the economic activity of a particular enterprise. Sometimes a large enterprise is guided by the prestige of a given segment and the goodwill of public opinion.

Compatibility of the segment with the market of its main competitors. Using this criterion, the management of the enterprise must receive answers to the questions: to what extent the main competitors are ready to sacrifice the chosen market segment, to what extent the promotion of the product of this enterprise here affects their interests. And if the main competitors are seriously concerned about the promotion of the products of a given enterprise in the selected market segment and take appropriate measures to protect it, then management will have to incur additional costs when targeting such a segment or look for a new one, where competition will be (at least initially) weaker.

Efficiency of work in the selected market segment. This criterion means, first of all, checking whether the enterprise has adequate experience in the selected market segment, checking how ready production and sales personnel are to promote products in this segment, and how prepared they are for competition. The management of the enterprise must decide whether it has sufficient resources to work in the selected market segment and determine what is missing here for effective work.

Protection from competition - it is important to correctly weigh your own chances of success in this segment, objectively assessing the capabilities of competitive firms. In accordance with this criterion, management must assess its ability to withstand the competition of possible competitors in the selected market segment. It is important to determine who can become a competitor in the selected market segment in the future, what are its weaknesses and strengths, what are your own comparative advantages in competition, in which areas of economic activity you need to concentrate your main efforts and resources in order to develop strengths and eliminate weaknesses, etc.

Only by receiving answers to all these questions, having assessed the potential of your enterprise according to all (and not just one) criteria, can you make a decision as to whether or not this market segment is suitable for the enterprise, whether it is worth continuing to study consumer demand in this segment, continue collecting and processing additional information and spending new resources on it. The listed criteria are also important when positions in a previously selected market segment are analyzed. Taking into account segmentation, in fact, the market capacity for the enterprise can be determined.

Marketing practice shows that market segmentation:

  • - allows you to satisfy the needs of customers for a variety of goods to the maximum extent;
  • - ensures rationalization and optimization of enterprise costs for the development, production and sale of goods;
  • - helps to develop an effective marketing strategy based on analysis and understanding of the behavior of potential buyers;
  • - contributes to the establishment of realistic and achievable goals for the company;
  • - makes it possible to improve the level of decisions made, providing them with justification by information about the behavior of buyers in the market at the present time and forecasts of their behavior in the future;
  • - ensures increased competitiveness of both the product and the company (strengthening competitive advantages);
  • - allows you to evade or reduce the degree of competition by moving to an untapped market segment;
  • - involves linking the company’s scientific and technical policy with the needs of clearly identified specific consumers;

Segmentation can be of several types, depending on the nature of its implementation and the type of consumer of goods and services. Highlight:

  • - macro-segmentation, within which markets are divided by region, country, degree of industrialization, etc.;
  • - micro-segmentation, which involves the formation of consumer groups (segments) of one country or region according to more detailed criteria (features);
  • - segmentation in depth, in this case the segmentation process begins with a wide group of consumers, and then gradually deepens it depending on the classification of end consumers of the product or service;
  • - segmentation in breadth, which begins with a narrow group (segment) of consumers, and then expands depending on the scope of purpose and use of the product;
  • - preliminary segmentation - the initial stage of marketing research, focusing on studying the maximum possible number of market segments;
  • - final segmentation - the final stage of market analysis, the implementation of which is regulated by the capabilities of the company itself and the conditions of the market environment. It is associated with the search for optimal market segments in order to position products there that meet consumer demand and the capabilities of the company.

Depending on the type of consumer of goods or services, a distinction is made between consumers of consumer goods and consumers of goods for industrial and technical purposes (STP). Fundamentally, the aspects of segmentation of the market for industrial goods are practically no different from those used in the consumer market, however, the market for machines, instruments and apparatus is less dependent on the conditions of their consumption. The main features of segmentation here are: the sector of economy and industry, the use of the product, the production technology used by the consumer, the economic capabilities of the buyer, the specifics of the organization of the purchase of goods, the form of payment and the characteristics of the persons making the purchasing decision.

Methods of market segmentation. There are various ways to segment a market. They (methods) are sets of indicators by which buyers are characterized by a common attitude towards a particular product. We consider, for example, segmentation by socio-economic variables, segmentation by culture, segmentation by geographical factors, segmentation by consumer adaptation to a new product, segmentation by channels of obtaining products, segmentation by primary purchase, segmentation by degree of use of the product.

There is no single method of market segmentation. The company needs to try various options segmentation based on different parameters. Geographical, demographic, psychographic, and behavioral principles are used to segment the consumer market.

Segmentation by geographic principle: involves breaking the market into various geographical regions - cities, districts, regions, republics, i.e. differentiation of marketing strategies for urban and rural consumers, for different regions and regions of the country.

Segmentation by demographic principle (segmentation by socio-economic variables) is the division of market consumers into groups (segments) based on factors such as: gender, age or stage of the family life cycle, family size, income level, occupation, education, nationality. Despite all the weaknesses, this method of segmentation is quite understandable and has a universal character.

Segmentation based on psychographic principles involves belonging to a social class - by lifestyle, personality characteristics, i.e. combines a whole range of buyer characteristics. The concept of “lifestyle” is, in fact, a model of an individual’s life, which is expressed in hobbies, actions, interests, opinions, hierarchy of needs, dominant type of relationships with other people, etc. Factors such as lifestyle and personal qualities of consumers more accurately reflect the possible reaction of buyers to a particular product than precise quantitative estimates of market segments based on geographic or demographic characteristics.

Segmentation based on behavioral principles involves the distribution of buyers into groups depending on their knowledge about the product, attitudes towards the product, the nature of its use: Reasons for making a purchase (the emergence of the idea of ​​making a purchase or using the product); benefits sought (classification of buyers based on the benefits they seek in trade), i.e. consumer motives (reasons for making purchases). Segmentation by benefits: it inherently takes into account the product category and the person’s value system. For example, a consumer choosing at the same time the cheapest refrigerator and the most expensive TV only because he likes the design of the latter.

User status: Many markets can be segmented as non-users, former users, potential users, new users, regular users. Large businesses looking to gain a larger market share are particularly interested in attracting potential customers, while smaller firms are looking to win regular users. Consumption intensity: markets can be divided into groups of weak, moderate and active consumers of the product. Heavy users often make up a small part of the market, but they account for a large percentage of total product consumption. Degree of commitment: consumer commitment to a brand may be absent, definite or complete. If it is absent, then the consumer does not prefer anything, he is attracted by sales, he often changes brands and is ready to try new products or services. If there is a certain loyalty, then the consumer prefers several brands, he is attracted by discounts, he rarely changes brands and usually does not try new ones. With full commitment, the consumer insists on one brand, is not attracted by discounts on others, and never changes brands or tries a new one.

Behavioral principles of segmentation are an important basis for the formation of market segments. Descriptive segmentation: based on the socio-demographic characteristics of the buyer, regardless of product category. For example: women - men - children; housewives - working women; families with different numbers of children; family life cycle.

Segmentation of the market for industrial goods is most often carried out according to the types of final consumers of the product. Different end consumers often look for different benefits in a product. This means that different marketing mixes can be applied to them. Another variable that can be used to segment the market for industrial goods is the importance of the customer.

Analysis of market segmentation data. The market consists of consumers who have similar needs. However, the population of buyers is never homogeneous. They differ in their desires, the amount of money they are willing to pay for the product, the quantity required, and the sources of information. Therefore, it is advisable to divide the market into segments and then select one or more to develop.

A market segment is a group of consumers with special characteristics that are essential for developing a marketing strategy.

In most markets, the need to develop offers in relation to specific segments is obvious, since one type of product / service is not able to simultaneously satisfy the needs of all consumers. In order to determine consumer needs, it is necessary to conduct marketing research. Marketing research is carried out in 2 stages.

The first: usually includes an informal survey of potential buyers and discussion in groups (focus group) in order to find out the benefits, needs, and differences in expressed desires that are valuable to respondents (for some, price is more important, for others, the quality and image of the product, etc. ) (quality characteristics are determined)

Second: a formal survey of a large group of respondents to quantify differences. The goal is to identify the relationship between differences in needs and the characteristics or characteristics of consumers.

The goal of Microsegmentation is to conduct more detailed analysis the entire variety of consumer demands within each product market (or macro-segment) determined at the Macro-segmentation stage. Buyers in the same product market require the same basic service. For example, watch buyers require a device to tell time. But we start from the concept of a product as a set of benefits, so we must remember that the way the basic service is provided, as well as the services that complement it, can be very different.

Microsegmentation analysis is carried out in order to identify groups of consumers who want to receive the same set of benefits from a product. Knowing this, the company can more successfully satisfy customer requirements, i.e. develop a differentiation strategy that will provide it with a competitive advantage over its market rivals.

After dividing the market into consumer groups, the company selects one or more segments to develop. To assess the attractiveness of a segment, the following factors are used: the size of the segmentation, the growth opportunities of the segment (the segment must have the opportunity to grow), the profitability of the segment, competition in this segment, the capabilities of the enterprise itself (present and potential).

Market segmentation is a universal way of dividing any industry into homogeneous groups. This process is not only applied to consumers to determine the target audience. Segmentation helps to analyze the range of all manufacturers on the market, build a map of competitive groups and determine the boundaries of price segments. In this article, we will take a closer look at seven universal ways of conducting product market segmentation.

Product market segmentation helps you look at any industry from a strategic angle. Combining all market products into homogeneous groups helps to conduct a qualitative analysis of market conditions, identify the most popular product groups in the industry, assess the capacity of each segment and forecast its growth dynamics, identify key market trends and, as a result, develop a working long-term assortment strategy.

7 Basic Segment Search Methods

In world practice, there are 7 main methods of segmenting the assortment on the market: by product groups, by basic functions / characteristics of the product, by volume and size of the product, by type of product packaging, by manufacturer, by price segments, as well as a combination of several parameters.

The first principle is product groups

Product groups are large categories of goods, united by purpose and principle of use. Product groups are a more detailed representation of the industry as a whole. Product groups in which the company’s products are not represented in fact represent good sources business growth. Entering new product groups, as a rule, does not lead to a decrease in sales of the current assortment, since it covers completely new customer needs.

For example, product groups of the household appliances market are: washing machines, refrigerators, kettles, TVs, etc.

The second principle is based on the intended purpose of the product

This type of segmentation is the most common and widely used. At the core this method Market segmentation by product groups is based on the key functions and characteristics of products that the consumer takes into account when purchasing. The more detailed the segmentation by main product functions, the easier it is to discover free market niches for company development.

Here is an example of segmenting the chocolate market:

  • by color and composition: dark, milky, white
  • by consistency: airy and not airy
  • by appearance: bar, tile, candy, other forms
  • according to tastes: pure chocolate, with nuts, with fruits, etc.

The third principle is by price segments

This type of market segmentation is important for understanding the formed price boundaries of the market. Over time, clear boundaries of price segments are established in the market, which tell the buyer about the quality of the product, its complexity, uniqueness and premium quality. Based on his income level, expectations of the effectiveness of the product, or desire to confirm his social status, the buyer chooses a product from one of the established price segments. If a customer wants a basic product, they are likely to buy the product at the lowest price. If the quality of the product, guaranteed results and status are important to him, he is more likely to pay attention to more expensive products.

The most common example of price segmentation: low-price segment or economy segment, mid-price segment, high-price segment, premium segment.

    Concept of market segmentation

    Selecting target market segments

    Product positioning.

    Market niche.

1.The concept of market segmentation

In modern conditions of market development, it is almost impossible to satisfy all consumers with one product or service. Everyone has their own desires, interests and expectations from the product. Therefore, companies need to take into account differences in consumer requirements and expectations when developing a marketing strategy and marketing mix. This can be done by dividing the market into specific groups, each of which contains consumers with common characteristics and similar needs for certain goods and services. Identifying these groups is called market segmentation.

An enterprise in its activities can focus on the entire market or on individual market segments. The task of marketing is to help an enterprise find its place in the market.

Under segmentation understand the division of the market into separate segments that differ either in their parameters and or in their response to certain types of activities, or in some other way.

Market segment- this is a specially selected part of the market, a group of consumers, goods or enterprises that have some common characteristics.

Market segmentation is one of the functions in the system of marketing activities and is associated with the implementation of work to classify buyers or consumers of goods located on the market or introduced to it. Main goal of segmentation- “revive” by focusing on the consumer the designed, manufactured and sold flow of goods (services) in a specific market segment.

The division of the underlying market is carried out in two stages, which correspond to two levels of market division.

At the first stage, which is called macro-segmentation, the “product market” is identified.

In the second stage, called microsegmentation, consumer segments are identified within each previously identified market (i.e., selecting small areas of the base market to apply the company's marketing efforts to them).

The segmentation process consists of the following steps:

Analysis of the company's market and marketing capabilities

Study of segmentation criteria

Market segmentation

Market environment analysis and target market selection

Selection and planning of a company's behavior strategy in the market

Assessing attractiveness and selecting target market segments

Positioning of products on the market

Marketing mix planning

Development of a marketing mix

Organization of the company’s activities in a new market segment

Segmentation goals:

The best satisfaction of the needs and requirements of people, customization of goods according to the wishes of the buyer

Strengthening competitive advantages

Ensuring rationalization of costs for production and sales of products

Orientation of all marketing work towards a specific consumer

Linking a scientific and technical company with consumer needs

Avoiding competition by moving into an untapped segment.

Pre-segmentation– the initial stage of marketing research, focusing on studying the maximum possible number of market segments.

Final segmentation– the final stage of market analysis, the implementation of which is regulated by the capabilities of the company itself and the conditions of the market environment. It is associated with the search for optimal market segments in order to position products there that meet consumer demand and the capabilities of the company.

Depending on the type of consumer of goods or services, a distinction is made between consumers of consumer goods and consumers of goods for industrial and technical purposes.

Thus, the consumer segment in a firm's product market consists of consumers with similar needs and behavioral or motivational characteristics, which creates favorable marketing opportunities for the firm.

The main goal of segmentation is to ensure targeting of the product being developed, produced and sold. By means of it, the basic principle of marketing is implemented - consumer orientation.

The average entrepreneur in our country without an economic education, but with rich practical experience in commercial matters, believes that segmentation is the division of the market for goods/services into certain areas based on common characteristics.

What is market segmentation - theory

Since this issue is one of the most important not only in marketing, but also in other economic disciplines, its study will help many businessmen, in addition to eliminating gaps in education, obtain practical benefits, which is expressed in conquering the market and increasing sales of their products. This article will discuss all the nuances of market division and structuring, including both the theoretical aspects of this issue and its practical component.

One of the main axioms of marketing, which is directly related to the topic of our article, says: you can get maximum profit only if you direct all the efforts and resources of the enterprise to a certain market segment, and not try to become a monopolist in all directions. Naturally, first of all, a person who has never studied marketing research, will ask what “segmentation” is, how it happens and what goals it pursues. Before giving answers to these questions, as it is written in textbooks on economic theory, let's try to do this on our own using available examples.

First, let's make a complete list of criteria by which segmentation occurs. It is necessary to take into account any nuances that allow you to distinguish one buyer from another:

    geographical characteristics (place of residence, size of the settlement, its level of urbanization).

    socio-demographic differences (age, gender, marital status, income, nationality).

    psychographic characteristics (moral values ​​and beliefs, outlook on life, upbringing, motivation to action).

    behavioral differences (this includes any parameters that characterize the buyer before/during and after the process of purchasing a product).

Using the above criteria, you need to imagine what the following categories of people would look like:

    those who will gladly buy your product and will never take advantage of competitors’ offers;

    those who can buy goods from you and from competing companies;

    customers who don't like your product.

Having collected and systematized all the above information, you can draw certain conclusions about the buyers of your products. In addition, with careful analysis, it is quite possible to identify the main errors in the production, advertising or sale of your goods. Why do 17-20 year old students buy products with pleasure, while adult consumers prefer to purchase similar products from competitors? Based on a structured analysis of the categories of your potential buyers, you can find the answer to this question.

At the next stage, you need to trace the pattern between the cost of the product and its potential buyers. That is, to draw up an approximate “portrait”:

    consumers of goods from competing companies that are cheaper than yours;

    consumers of goods from competing companies that cost more than yours;

    consumers of products from competing companies that cost the same as yours.

At the next stage, you need to carefully analyze all the information received and, preferably, create a table with the criteria of buyers and their price preferences. The result of your analytical work should be the identified parameters, which will be the foundation of segmentation.

For example, an accomplished man, 52 years old, with a higher education, of average income, who has a family with adult children, an apartment in a fairly big city and a holiday cottage, he will never buy cheap cognac, but he will not overpay huge sums for the “name”, buying a well-known French brand (there is a possibility that it is a fake). At the same time, a twenty-year-old student living in a dormitory with his parents’ money and going on a visit can most likely buy a counterfeit to show that he earns “serious” money and can afford to spend it on “quality” alcohol. Note that he does not care about the fact that the next morning he and his friends may wake up in the hospital with a diagnosis of poisoning from low-quality alcohol.

Based on basic criteria, it is necessary to segment the market and begin to assess the potential of your products in each segment. To do this, it is best to proceed according to the following scheme:

    assess the prospects for its development in the near future.

    determine the competitiveness of your products and the chances of winning a buyer in this segment.

On final stage You need to determine which market segments are of interest to the company in terms of making a profit. The main thing is not to scatter your capabilities and do not try to capture the entire market in one fell swoop! In every business, consistency and efficient use of resources should be the determining factors. This is the only way to achieve serious results and make your enterprise profitable and promising.

It is simply physically impossible to consider all the definitions of “market segmentation” that exist today in marketing theory. In principle, if we remove unimportant nuances, they boil down to the fact that this is the first stage of market research, which helps determine its capacity, structure and development prospects, taking into account the sentiments, preferences and economic capabilities of potential consumers.

Practical aspects of market segmentation

Considering modern tendencies development of the global economy and the lack of stability in this process, we can safely say that the term strategic segmentation, widespread several years ago, has today completely lost its original meaning. If earlier it meant a complete change in the outgoing parameters (objective or conscious) in any market within 2-3 years, today this term means a study of the main parameters of the market in order to determine the correct development strategy for the company.

The following market parameters are distinguished::

    needs to be satisfied;

    individual consumer groups belonging to a specific segment;

    timing, volumes and cost of sales of products in certain segments;

    technology to meet needs.

In the process of realizing your main goal– obtaining maximum profits with minimal expenditure of resources, each company selects promising target segments that correspond to the optimal production volume. Management theorists call them the strategic zone of management.

The entire process of selecting and forming strategic management zones comes down to the following actions:

    determining the needs of potential consumers;

    analysis of available technological capabilities to meet these needs;

    calculating the cost of manufactured products;

    determining the market segment in which this product will be in demand;

    implementation.

But such a strategy is only possible in a situation where demand consistently exceeds supply on the market for a given product. If the market situation changes, strategic segmentation involves searching for new areas of activity based on existing technological capabilities. We can conclude that segmentation in marketing is one of the main principles that allows you to get maximum results using exclusively objective factors, without interfering with production technology or other organizational issues.

Another important point, which is directly related to the topic of our article - market coverage strategy.

Marketers identify three main areas:← Back

 


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