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Market Segmentation Procedure

Market segmentation makes it possible for a firm to best utilize its available resources. It needs intensive marketing research. Once it is decided to go for market segmentation, there are lists of questions, which must be answered. The examples of the questions are given as under. These are just general steps, which make you aware of the market segmentation, and each firm may have its own set of questions.

  1. What is the marketing objective of the firm?
  2. Is marketing looking for new segments?
  3. If yes, what about the research, shall the firm use the existing data or will invest money in research?
  4. If no, how to better satisfy the existing market segments?
  5. What is the size of the total market and its various segments?
  6. What are the users and non users of the products / services
  7. What are the factors that distinguish between users and non-users?
  8. Who are the competitors and what are their market / niche segments?
  9. What is the firm’s position in the competition in the market?
  10. How the firm can differentiate the consumers?
  11. What are the possible segment profiles?
  12. Does this segment profile makes internally homogenous groups?
  13. Is the number of segments needs to be reduced or increased?
  14. Which segments represent the best competencies and market opportunities?
  15. What are the target segment’s characteristics and market behavior?
  16. Who are the competitors in the target segment?
  17. What kind of market mix will be suitable to this segment?
  18. Does the firm have the necessary resources to carry out a segment strategy?
  19. How flexible is this segment strategy? Can this be broadened in future?
  20. Does this segment strategy fit the corporate strategy?

Survey Stage,  starts with exploratory to gain insights into consumer motivations,  attitudes and behavior,  used to collect data on attributes,  brand awareness,  product usage patterns,  attitudes, demographics. Profiling stage,  each cluster is now profiled in terms of its distinguishing attitudes,  behavior, demographics, psychographics, and media-consumption habits. Each segment is given a name.

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