By market segmenting one understands the allocation of a heterogeneous total market into homogeneous partial markets, the market segments. These can be formed on the basis of different criteria, e.g. (for consumer goods) age, sex, occupation etc. segmenting refers to the allocation of the consumers. A partial market refers to the products.

The market segments are to be formed in such a way that they exhibit as homogeneous a reactions to the marketing instruments and behaviors of the enterprise as possible. A condition for the market segmenting is the market demarcation.

Classification

While the market lesson means the conscious elimination of certain potenzieller customer groups, the market segmenting is concerned with the different treatment of the target groups selected before. The selection of the segmenting criteria depends thereby on the specific objectives of the market preparation conception.

Segmenting criteria

Possible segmenting criteria can be divided in three categories, which are used also combination-natively for division of the market: (1) Demographic and (2) psychographische criteria as well as (3) the observable purchase behavior.

• Demographic criteria (demography, Greek of dmos - people and graph - writing, description, and/or demography is a scientific discipline, which is concerned with the life, and the passing of human populations) set at outward and therefore easily detectable characteristics.

Two sub-groups of demographic market segmenting criteria are differentiated:

Geographical segmenting criteria

Socio-economic segmenting criteria

• Psychographi segmenting criteria refer to general personality characteristics of the current and potenziellen buyers as well as to product specific characteristics. This can be:

Personality characteristics and

Product specific criteria.

• The observable purchase behavior as segmenting criterion covers

the price behavior (price range, special offer use),

the medium use (kind and number of the media, use intensity), the shopping place choice (types of firm, shopping place loyalty) and

the product choice (mark choice, purchase volume, consumption intensity). It covers thus criteria of the information, purchase and use behavior (behavior-referred segmenting criteria).

Requirements

The allocation of the total market into sub-groups (market segments), among themselves internally homogeneous concerning their market reaction, heterogeneous and, represents a division of the market of the consumers, whereby the population is unknown first. About it is helpful to differentiate first between and potenziellen and/or current buyers whereby segmenting refers in particular to the latter groups. The requirements of the possible segmenting criteria can be described as follows.

1. Purchase behavior relevance: The segmenting criteria must point a relevant purchase out for the purchase behavior of the consumers.
2. Informative capability for the employment of the paragraph-political equipment: Developments of the segmenting criteria should offer starting points for the purposeful employment of the paragraph-political instruments (so-called marketing-mixreferred reaction coefficients).
3. Accesibility and/or accessibility: The selected segmenting criteria should make purposeful communication and distribution politics possible of the selected segments. For example target groups with same medium use behavior should be determined let themselves by the selected segmenting criteria.
4. Measurability (operationality): The selected segmenting criteria should permit a demarcation with existing market study methods. Therefore demographic criteria are easily accessible and therefore often used such as income, age, sex etc.
5. Temporal stability: The segmenting criteria should exhibit a certain temporal stability, so that a long-term employment of the paragraph-political instruments is possible.
6. Economy: In the long run the criteria of segments should to define help, their treatment are worth.

The collection of the criteria has to take place in such a manner that the use resulting from segmenting is larger than the resulting costs.

1. Capacity to act:

Market segmenting with capital goods

In the comparison to consumer goods marketing (Consumer marketing) capital goods marketing (Industrial marketing) is subject to other basic conditions: The demand is frequently a derived demand; thus the demand for river causes the demand for a power station etc. - beyond that the procurement behavior, coined/shaped formalized by Buying center, is frequently multi-personnel and.

Segmenting criteria e.g. are:

• Size of company
• Industry
• Geographical location (country)
• New customer and/or possible [[prospective customer/inventory customer

In the comparison to consumer goods marketing are over the potenziellen customers in the substantially accessible to more information for the market segmenting from secondary sources, like e.g.

• Fair catalogs
• The yellow pages
• Internet
• Restaurant economics like e.g. Creditreform
• Press

Formal segmenting procedures

The market segmenting avails itself of procedures of the data analysis, over

• the objects to classify (classification) and those
• this into the classes to in-group (classification)

In particular as useful proved the combination of factor and cluster analysis here.

See also

• relevant market
• Customer segmenting

Articles in category "Market segmenting"

We found here 10 articles.

Related Websites

We found here 3 related websites.

• Finding Customers: Market Segmentation, CDFS-1253-94
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  The purpose for segmenting a market is to allow your marketing/sales program to focus on the subset of prospects that are.


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