celine handbags out site buy it Market segmentation consists of segmenting or dividing the total market that exists for a product in different homogeneous sub-markets made up of consumers with similar characteristics, and then selecting among all the resulting submarkets, the market or the most attractive markets to enter.
The reason for segmenting the market is that today the total market that exists for a product is so wide and varied, that it is not profitable to adapt a product for each type of consumer that conforms it, but the most reasonable is to identify types of Consumers with similar characteristics, and focus only on one of these.
Focusing on a segmented but attractive market and directing our products or services only towards it, allows us to specialize in it and achieve greater efficiency since, for example, we can better understand the needs and preferences of the consumer that conforms, and serve them The best way possible.
celine handbags Let’s see below what are the steps necessary to perform a market segmentation, along with a simple example that will help us gain a better understanding:
1. Segment the total market
The first step is to identify the total market that exists for our product and to segment or divide it into different homogeneous sub-markets composed of consumers with similar characteristics.
To do this segmentation we can use different variables; For example, we can segment or divide the market by:
canada goose -Location (country, region, city).
-Age range (children, adolescents, adults).
-Gender (men and women).
-Socioeconomic status (level A, level B, level C).
-Income level (monthly income range).
-Level of education (primary, secondary, university).
-Social stratum (high, medium, low).
-Lifestyle (activities, interests, hobbies).
Example: For a business dedicated to the manufacture and sale of clothing, we decided to segment the market in men and women, aged 0 to 15, 15 to 35 and 35 to 60 years, and in monthly income of 0 to 500, 500 To 1500, and 1500 to 3000 dollars.
2. Select the target market
Once we have segmented the total market that exists for our product, the next step is to select, among all the resulting submarkets, the most suitable or attractive to venture, considering our resources, capacity, knowledge and experience; But also considering that it is sufficiently large and has sufficient economic capacity.
canada goose The chosen submarket would become our target market, target market, niche market or target audience; Market to which we are going to direct and on the basis of which we are going to design our marketing strategies.
Example: once we have segmented the market we decided that the submarket to which we are going to direct our clothing and, therefore, our target market, will be made up of women from 15 to 35 years with monthly income of 500 to 1500 dollars.
3. Define the consumer profile
Once we have selected our target market, in order to perform a better analysis, we define the profile of the consumer that conforms it; That is, we describe what are its main characteristics, based mainly on the variables we have previously used to segment the market.
The definition of the consumer profile that shapes our target market could include where it is from, what its age range is, what its socioeconomic level is, what its tastes and preferences are, what its consumption habits are, what its customs are, what Are their interests, etc.
Example: once we have selected our target market and analyzed it, we determined that the profile of the consumer that conforms is that of women who are looking for models that are attractive for the garment we are going to offer, usually pay for it an average of 30 Dollars, they usually buy mainly in malls, and often have as their main hobby surfing the Internet.
4. Design marketing strategies
Once we have clearly defined the consumer profile that conforms our target market, based on that profile, we proceed to design the marketing strategies that we will use to serve it.
The design of marketing strategies could include the design of products that seek to satisfy their tastes and preferences, pricing according to their economic capacity, the choice of sales channels that are accessible to them, the selection of advertising media that are at their disposal. Reach, the writing of advertising messages that cause impact, etc.
Example: once we have grown as a company and acquired enough experience, and we have consolidated in the women market, we decided to also enter the men’s market and, therefore, launch a new line of clothing for men.