FACTOID # 6: Michigan is ranked 22nd in land area, but since 41.27% of the state is composed of water, it jumps to 11th place in total area.
 
 Home   Encyclopedia   Statistics   States A-Z   Flags   Maps   FAQ   About 
   
 
WHAT'S NEW
 

SEARCH ALL

FACTS & STATISTICS    Advanced view

Search encyclopedia, statistics and forums:

 

 

(* = Graphable)

 

 


Encyclopedia > Market segment

A Market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.


Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. Because each segment is fairly homogeneous in their needs and attitudes, they are likely to respond similarly to a given marketing strategy. That is, they are likely to have similar feelings and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way and promoted in a certain way. “Next big thing” redirects here. ... This article does not cite any references or sources. ... Attitude is a hypothetical construct that represents an individuals like or dislike for an item. ... This article does not cite any references or sources. ... The marketing mix is generally accepted as the use and specification of the 4 Ps describing the strategic position of a product in the marketplace. ... This article is about a term used in economics. ... In economics and business, the price is the assigned numerical monetary value of a good, service or asset. ... Wikibooks has more about this subject: Marketing Distribution is one of the 4 aspects of marketing. ... Wikibooks has more about this subject: Marketing Scale model of a Wheaties cereal box at a pep rally Promotion is one of the four key aspects of the marketing mix. ...


Broadly, markets can be divided according to a number of general criteria, such as by industry or public versus private sector. Small segments are often termed niche markets or specialty markets. However, all segments fall into either consumer or industrial markets. Although it has similar objectives and it overlaps with consumer markets in many ways, the process of Industrial market segmentation is quite different. A niche market is a focused, targetable portion of a market. ... // Kotler quotes Jack Welch to have started “his management meetings with the admonishment ‘Change or die’” (Kotler, 2001:5) [1] He also cites Richard Love of Hewlett-Packard to have observed “The pace of change is so rapid that the ability to change has now become a competitive advantage”. If...


The process of segmentation is distinct from targeting (choosing which segments to address) and positioning (designing an appropriate marketing mix for each segment). The overall intent is to identify groups of similar customers and potential customers; to prioritize the groups to address; to understand their behaviour; and to respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment. Revenues are thus improved. Targeting is to make a thing or group of things a Target, to select it or them to be acted upon. ... A products position is how potential buyers see the product. ...


Improved segmentation can lead to significantly improved marketing effectiveness. With the right segmentation, the right lists can be purchased, advertising results can be improved and customer satisfaction can be increased. Marketing Effectiveness is the function of improving how marketers go to market with the goal of optimizing their marketing spend to achieve even better results for both the short-term and long-term. ...

Contents

The requirements for successful segmentation are:

These criteria can be summarized by the word DAMAS: A heterogeneous compound, mixture, or other such object is one that consists of many different items. ... Various meters Measurement is an observation that reduces an uncertainty expressed as a quantity. ... Identification when dealing with information (specifically data stored in databases) is the capability to find, retrieve, report, change, or delete specific data without ambiguity. ... A lawsuit is a civil action brought before a court in which the party commencing the action, the plaintiff, seeks a legal remedy. ... This article or section does not cite any references or sources. ...

  • D Differential: it must respond differently to a different marketing mix
  • A Actionable: you must have a product for this segment to be accured
  • M Measurable: size and purchasing power can be measured
  • A Accessible: it must be possible to reach it efficiently
  • S Substantial: the segment has to be large and profitable enough

The variables used for segmentation include:

When numerous variables are combined to give an in-depth understanding of a segment, this is referred to as depth segmentation. When enough information is combined to create a clear picture of a typical member of a segment, this is referred to as a buyer profile. When the profile is limited to demographic variables it is called a demographic profile (typically shortened to "a demographic"). A statistical technique commonly used in determining a profile is cluster analysis. Map of the Earth Geography (from the Greek words Geo (γη) or Gaea (γαια), both meaning Earth, and graphein (γραφειν) meaning to describe or to writeor to map) is the study of the earth and its features, inhabitants, and phenomena. ... Look up Region in Wiktionary, the free dictionary. ... For other uses, see Country (disambiguation). ... Demographics refers to selected population characteristics as used in government, marketing or opinion research, or the demographic profiles used in such research. ... The effects of ageing on a human face Elderly woman Ageing or aging is the process of systems deterioration with time. ... Gender in common usage refers to the sexual distinction between male and female. ... Sexual orientation refers to the direction of an individuals sexuality, normally conceived of as falling into several significant categories based around the sex or gender that the individual finds attractive. ... a family of Ouagadougou, Burkina Faso in 1997 Family is a Western term used to denote a domestic group of people, or a number of domestic groups linked through descent (demonstrated or stipulated) from a common ancestor, marriage or adoption. ... Income, generally defined, is the money that is received as a result of the normal business activities of an individual or a business. ... For the album by the Kaiser Chiefs see Employment (album) Employment is a contract between two parties, one being the employer and the other being the employee. ... Socioeconomics or Socio-economics is the study of the relationship between economic activity and social life. ... In English usage, nationality is the legal relationship between a person and a country. ... For other uses, see Race (disambiguation). ... In marketing, demographics, opinion research, and social research in general, psychographic variables are any attributes relating to personality, values, attitudes, interests, or lifestyles. ... The term style of life was used by psychiatrist Alfred Adler as one of several constructs describing the dynamics of the personality. ... “Value” redirects here. ... Attitude is a hypothetical construct that represents an individuals like or dislike for an item. ... Behavior or behaviour refers to the actions or reactions of an object or organism, usually in relation to the environment. ... Brand loyalty has been proclaimed by some to be the ultimate goal of marketing. ... It has been suggested that this article or section be merged with committee. ... Profitability is a technical analysis term used to compare performances of different trading systems or different investments within one system. ... In computer science and mathematics, a variable (IPA pronunciation: ) (sometimes called a pronumeral) is a symbolic representation denoting a quantity or expression. ... Look up profile in Wiktionary, the free dictionary. ... A demographic or demographic profile is a term used in marketing and broadcasting, to describe a demographic grouping or a market segment. ... This article is about the field of statistics. ... Cluster analysis is a class of statistical techniques that can be applied to data that exhibits “natural” groupings. ...


Top-down and bottom-up

George Day (1980) describes model of segmentation as the top-down approach: You start with the total population and divide it into segments. He also identified an alternative model which he called the bottom-up approach. In this approach, you start with a single customer and build on that profile. This typically requires the use of customer relationship management software or a database of some kind. Profiles of existing customers are created and analysed. Various demographic, behavioural, and psychographic patterns are built up using techniques such as cluster analysis. This process is sometimes called database marketing or micro-marketing. Its use is most appropriate in highly fragmented markets. McKenna (1988) claims that this approach treats every customer as a "micromajority". Pine (1993) used the bottom-up approach in what he called "segment of one marketing". Through this process mass customization is possible. George Day may refer to: George Day, vice-chancellor of the University of Cambridge in 1537 George Day, Bishop of Chichester, England (Catholic) 1543-1551 George Day, marketing specialist, 1970s George C. Day, U.S. Navy rear admiral George E. Day, U.S. Air Force colonel, Medal of Honor recipient... An abstract model (or conceptual model) is a theoretical construct that represents something, with a set of variables and a set of logical and quantitative relationships between them. ... Customer relationship management (CRM) is a broad term that covers concepts used by companies to manage their relationships with customers, including the capture, storage and analysis of customer, vendor, partner, and internal process information. ... A demographic or demographic profile is a term used in marketing and broadcasting, to describe a demographic grouping or a market segment. ... Behavior or behaviour refers to the actions or reactions of an object or organism, usually in relation to the environment. ... In marketing, demographics, opinion research, and social research in general, psychographic variables are any attributes relating to personality, values, attitudes, interests, or lifestyles. ... This article does not cite any references or sources. ... Cluster analysis is a class of statistical techniques that can be applied to data that exhibits “natural” groupings. ... Database marketing is a form of direct marketing using databases of customers or potential customers to generate personalized communications in order to promote a product or service for marketing purposes. ... Mass customization refers to a customer co-design process of products and services which meet the needs of each individual customer with regard to certain product features . ...


Price discrimination

Where a monopoly exists, the price of a product is likely to be higher than in a competitive market and the quantity sold less, generating monopoly profits for the seller. These profits can be increased further if the market can be segmented with different prices charged to different segments (referred to as price discrimination), charging higher prices to those segments willing and able to pay more and charging less to those whose demand is price elastic. The price discriminator might need to create rate fences that will prevent members of a higher price segment from purchasing at the prices available to members of a lower price segment. This behaviour is rational on the part of the monopolist, but is often seen by competition authorities as an abuse of a monopoly position, whether or not the monopoly itself is sanctioned. Examples of this exist in the transport industry (a plane or train journey to a particular destination at a particular time is a practical monopoly) where Business Class customers who can afford to pay may be charged prices many times higher than Economy Class customers for essentially the same service. Microsoft and the Video industry generally also price exactly the same product at widely varying prices depending on the market they are selling to, and try to enforce this with a mix of legislation and Digital Rights Management. A monopoly (from the Greek language monos, one + polein, to sell) is defined as a persistent market situation where there is only one provider of a product or service, in other words a firm that has no competitors in its industry. ... In economics, a firm is said to reap monopoly profits when a lack of viable market competition allows it to set its prices above the equilibrium price for a good or service without losing profits to competitors. ... Price discrimination exists when sales of identical goods or services are transacted at different prices from the same provider. ... In economics and business studies, the price elasticity of demand (PED) is an elasticity that measures the nature and degree of the relationship between changes in quantity demanded of a good and changes in its price. ... Competition is the act of striving against others for the purpose of achieving gain, such as income, pride, amusement, or dominance. ... Digital rights management (DRM) is an umbrella term that refers to access control technologies used by publishers and other copyright holders to limit usage of digital media or devices. ...


See also

Some market segments are referred to by acronyms DINKY - Double income no kids yet => they can afford eg holidays and yachts SOHO - Small Office, Home Office VSB - Very Small Business SMB - Small Medium Business / SME - Small and medium enterprise VALS - Values Attitude and Life-Styles LOHAS - Lifestyles of Health and... Consumer behaviour is the study of how people buy, what they buy, when they buy and why they buy. ... Demographics refers to selected population characteristics as used in government, marketing or opinion research, or the demographic profiles used in such research. ... “Next big thing” redirects here. ... Personalization is tailoring specifically to one individual. ... Personalized marketing (also called personalization, and sometimes called one-to-one marketing) is an extreme form of product differentiation. ... Target market may be defined as a market which an organisation sets its views on, either because it is witnessing an increasing demand for the product produced by the organisation, either because it represents a blue ocean for the organisation to exploit before its competitors get there, so as to... Wikipedia does not yet have an article with this exact name. ... Data clustering is a common technique for data analysis, which is used in many fields, including machine learning, data mining, pattern recognition, image analysis and bioinformatics. ...

References

  • Day, G. (1980) "Strategic Market Analysis: Top-down and bottom-up approaches", working paper #80-105, Marketing Science Institute, Cambridge, Mass. 1980.
  • McKenna, R. (1988) "Marketing in the age of diversity", Harvard Business Review, vol 66, September-October, 1988.
  • Pine, J. (1993) "Mass customizing products and services", Planning Review, vol 22, July-August, 1993.
  • Steenkamp and Ter Hofstede (2002) "International market segmentation: issues and perspectives", Intern. J. of Market Research, vol 19, 185-213

External links

  • Overview of market segmentation(ICR)
  • Market Segmentation / Strategic Marketing Software
  • Profile of Live Behavioral Segmentation - uncovering true customer segments, their decision drivers and their likelihood to buy
  • Using market segmentation with digital marketing strategies

  Results from FactBites:
 
Market segment - Wikipedia, the free encyclopedia (749 words)
Market segmentation is the process in marketing of grouping a market (i.e.
The purpose of segmentation is to identify and target prime customer groups (eg the 20% that account for 80% of your sales) so that you get the maximum return from a limited marketing budget (the most bang for your buck).
These profits can be increased further if the market can be segmented with different prices charged to different segments (referred to as price discrimination), charging higher prices to those segments willing and able to pay more and charging less to those whose demand is price elastic.
  More results at FactBites »

 
 

COMMENTARY     


Share your thoughts, questions and commentary here
Your name
Your comments

Want to know more?
Search encyclopedia, statistics and forums:

 


Press Releases |  Feeds | Contact
The Wikipedia article included on this page is licensed under the GFDL.
Images may be subject to relevant owners' copyright.
All other elements are (c) copyright NationMaster.com 2003-5. All Rights Reserved.
Usage implies agreement with terms, 1022, m