Market Segmentation

Market Segmentation is the basis for Market Targeting and Positioning (STP).  Marketing Managers enjoy leading the discussions and helping the rest of the team through the segmentation process.  Here are the steps for market segmentation.

– Name the market.  

– Identify market needs.  (Review research findings and SWOT Analysis)

– List the qualifying dimensions.  (Six to ten should be sufficient.  Refer to Table 8.1 on page 214.)

– Identify market segments.  (Use descriptive names.  Do not use current product names.)

– Describe market segments using determining dimensions.

– Create a meaningful graphic representation of the market segmentation.

Be open to iterations and changes.  There is not a right or wrong.  Progress is made when the segments identified and described are measurable, substantial, accessible, differentiable, and actionable.

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One response to “Market Segmentation

  1. Patrick Lauriano

    Niche Marketing for small business: By targeting the best prospects and occupying a niche means you won’t be competing with a lot of similar businesses solely on price. And because you will be selling products and services that are customized to the specific needs and predispositions of a select group of people, you can often charge more. Your products and services serve a market that can’t easily find alternatives.

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