What is "Market Segmentation"?
Market segmentation is the identifiable groups of potential customers with similar needs or characteristics who are likely to exhibit similar purchase behaviour.
Market segmentation is the corner-stone of customer-oriented planning, leading to sustainable competitive advantage, successful marketing implementation and control.
The purpose for segmenting a market is to allow your marketing/sales program to focus on the subset of prospects that are most likely to purchase your offering. If done properly this will help to insure the highest return for your marketing/sales expenditures. Depending on whether you are selling your offering to individual consumers or a business, there are definite differences in what you will consider when defining market segments.
The major benefits of market segmentation analysis is superior marketing strategy:
- Selection of the optimal product portfolio to meet the needs of the marketplace.
- Development of superior, cost-efficient advertising & promotion.
- Improving long-term market position - image, customer satisfaction, competitive advantage and cost-effectiveness.
- Better corporate planning and development of marketing strategies
Market segmentation is a four-step process::
1. Segment Identification - Identification and assessment of
heterogeneous groups
2. Segment Selection - Choosing attractive segments that are
appropriate for the organisation to pursue.
3. Segment Targeting - Allocating marketing resources
to fulfil the needs and wants of the prime target audience/s you have selected .
4. Positioning - Using your insight and understanding to manage the
elements of the marketing mix so as to optimally meet the needs and wants of
that segment.
Market Segmentation - Understand the consumer so you can provide the best choice they can make
Launch Engineering identifies meaningful and usable market segments using insight and extensive experience COMBINED with advanced academic knowledge: You enjoy a synergy of empirically supported, informed strategy.
If you are less than100% satisfied with your marketing results, ask for a Launch Engineering segmentation study now.
The Background and Importance of Segmentation
Segmentation is regarded by many to be the single most important business strategy to have in place as it drives many sales, marketing and system processes. Segmentation aims to group customers into discrete homogenous groups based on identifiable factors
Segmentation aims to provide a framework to assist in :
- Tailoring our value proposition to each segment
- Viewing customers based on business drivers – theirs and ours
- Discuss and agree priority segments
- Identify higher value and higher opportunity segments
- Allocate resources based on agreed priorities
- Develop sales approaches, targets and KPI’s
- Develop messages to these segments
- Adjust value propositions per segment – as necessary
Perfect Information leads to perfect decisions” means you need experts at information interpretation
Launch Engineering’s consultants know the value of better market research, better analysis, and better understanding of buyer behaviour.. Launch Engineering marketing information management regularly helps clients make winning decisions: We execute market research and data mining that saves clients from wasting marketing money, generate more profits and win more market share.
We create customer segmentation frameworks to review customer retention, cross sales, customer loyalty, customer profitability and more.
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