regulation in different market segments. Product market segmentation process

  • 12.10.2019

After the firm has conducted a comprehensive and thorough analysis of the market, the desires and characteristics of consumers, it must choose the most profitable market segment for it.

Market segment- This is the part of the market that the company can effectively serve.

Market segmentation- This is the process of dividing a single consumer market into a number of segments according to some factor (attribute).

Market segmentation is one of the main elements of the company's market strategy.

Target- the most complete satisfaction of the needs and requirements of customers, and as a result, the successful functioning and prosperity of the company.

The well-known marketer S. Madjaro noted that a marketing specialist who is able to offer a new way of market segmentation for his product can enable the company to avoid intense competition. Therefore, the success of the company in the competition will largely depend on how well the market segment is chosen.

The main segmentation of the market is the position of the company in a competitive environment, when it is not able to satisfy all the needs for a particular product, and therefore must focus only on those segments that are most preferable in terms of the production and commercial capabilities of the company. Sales market segmentation objects- these are groups of consumers, goods (services), as well as enterprises (competitors).

2. Stages of segmentation

There are (distinguish) main stages of segmentation:

1) identification of the requirements and main characteristics of the consumer to the product (service) offered by the company: at this stage, using various marketing methods, the requirements and wishes of consumers are determined and systematized;

2) analysis of similarities and differences of consumers: there is an analysis of the collected information; identification of similarities or differences should affect the developed marketing plan;

3) development of profiles of consumer groups: consumers with similar characteristics and needs are allocated into separate profiles that define market segments;

4) choice of segment (segments) of consumers: follows from the previous stage;

5) determination of the company's place of work in the market in relation to competition: at this stage, the company needs to answer two questions - which market segments will not create great opportunities for the company and how many consumer segments should be targeted; and the company must realistically present its goals, strengths, the level of competition, the size of markets, relationships with distribution channels, profits and your image in the eyes of others;

6) creation of a marketing plan: after the company has collected and analyzed information about consumers, defined its market segment (or segments), it must study in detail the properties and images of its competitors' products, and subsequently determine the position of its product in the market; as a result, the company develops a marketing plan, including: product, distribution, price, promotion.

3. Types of segmentation

Market segmentation requires a detailed study of the requirements imposed by the consumer on the product, as well as knowledge of the characteristics of the purchasing motivations of the consumers themselves.

Segmentation is divided into the following types depending on its nature and on the type of consumer of goods (services).

1. Depending on the nature of segmentation:

1) macro-segmentation - the division of markets into regions, countries, the degree of their industrialization;

2) microsegmentation - the formation of consumer groups of one country (region) according to more detailed characteristics (criteria);

3) segmentation in depth - the segmentation process begins with a wide group of consumers, and then it is gradually deepened (narrowed) depending on the classification of end consumers of any group of goods (services); e.g. automobiles, passenger cars, luxury cars;

4) segmentation in breadth - the segmentation process begins with a narrow group of consumers and gradually expands depending on the scope and use of the product (service); for example, skates for professional athletes, skates for amateurs, skates for young people;

5) preliminary segmentation - the study of the maximum possible market segments;

6) final segmentation - the final stage of market research; here the most optimal segments for the market for the company are determined, in which it will develop its market strategy in the future.

2. Depending on the type of consumers:

1) the process of segmenting consumers of consumer goods (services);

2) segmentation of consumers of goods for industrial purposes;

3) segmentation of consumers of two types of goods.

However, in practice, each type of market segmentation is not used separately. As a rule, market marketers use a combination of these types in their analysis.

4. Criteria for market segmentation

Market segmentation is carried out according to criteria and characteristics.

Criterion is a way of assessing the choice of a particular segment by a firm.

Market segmentation criteria:

1. Segment capacity, i.e. how many goods (services), at what cost can be sold in this segment, and therefore, how many potential consumers can be served; based on this, the firm determines the required production capacity.

2. Availability of the segment, i.e. e. Obtaining the company's channels for distribution and marketing of products, as well as the conditions for transporting products in this segment.

3. The materiality of the segment, i.e., how stable is the market to the capacity utilization of the enterprise.

4. Profitability.

5. Protection from competition , i.e., how compatible is the market segment with the market of the main competitors; opportunity to assess strengths and weak sides"rivals".

6. Experience of the firm's personnel.

7. Accessibility of the media.

8. Impact of business structure.

9. Legal aspects.

10. Demographic characteristics.

11. Lifestyle.

12. The attitude of consumers to this brand.

13. Expected risk.

14. Importance of buying.

15. Geographic, i.e. urbanization, relief, climate.

16. Demographic.

17. Economic (property).

18. Social.

19. Cultural.

20. Psychological, etc.

5. Strategy and opportunities for market segmentation

After the segmentation of the market, the firm needs to make a decision on how many and what segments it will work on. It is also important to choose a strategy.

There are three types of strategies:

1) undifferentiated;

2) differentiated;

3) concentrated.

Strategy undifferentiated marketing is a firm strategy that focuses on the commonality of interests and preferences of buyers, and not on differences in needs and attitudes. Target– development of such products and marketing program that can satisfy the maximum possible number of customers. In other words, the goal of the firm is achieved by finding a line of compromise. The company adheres to the standardization and mass production of goods. This strategy is very economical. However, it is not recommended to use it for enterprises of the same industry, since there may be fierce competition in large segments.

Strategy differentiated marketing- This is a company strategy focused simultaneously on several market segments with the development of individual proposals. This strategy more fully reflects the market situation, and therefore provides large sales volumes and a low level of risk. On the other hand, large investments, production and management costs are necessary, therefore the strategy of differentiated marketing is feasible mainly for large companies.

Strategy concentrated marketing is a strategy for focusing the firm's efforts on one or more profitable market segments. Especially, it is attractive in cases where the resources of the enterprise are rather limited. This strategy is preferred for small and medium-sized firms. It consists in the fact that one or more products are offered to the market, which are accompanied by targeted marketing programs. At the same time, it is necessary to pay great attention to the reputation of your company, the prestige of your product, constantly analyze selected segments, monitor the dynamics of market share, and take measures to prevent the emergence of new competitors.

The main arguments in favor of market segmentation are:

1) the possibility of providing a better understanding of not only the needs and requirements of buyers, but also knowing your potential or real consumer “in person” (personal characteristics, motives for behavior in the market, etc.); result - the product is more in line with the requirements of the market;

2) the possibility of a better understanding of the nature of competition;

3) the emergence of the possibility of concentrating limited resources and organizational capabilities on more profitable areas of their use;

4) study of the most promising buyers;

5) the ability to take into account the characteristics of various market segments.

6. The concept of a segment and a market niche

Segment- this is a certain group of consumers that has one or more stable features that determine their behavior in the market.

Purchasing needs under the influence of changing market trends, new offers of firms, opinions from the outside are constantly evolving and changing. Therefore, market segments are not constant.

The success of firms in the market depends not only on finding their segment, but also on finding an unoccupied place in the market - a market niche. For a company to find its market niche means to find “its own home”, i.e. a niche is such a part of the market where the company has secured a dominant position. It is believed that an enterprise operating in niches knows and knows how to satisfy the needs and requirements of buyers of its niche so much that the latter are willing to pay even higher prices for the goods (services) of this enterprise.

Occupying your niche is a chance to survive the competition by focusing your resources on serving narrower market niches that do not attract interest or are not paid attention to by larger companies - competitors.

7. Multiple segmentation

Multiple segmentation- this is one of the methods for determining the target market, characterized by the scale of activities.

Scale of activity is to involve several market segments in the process of buying and selling, which indicates certain production and marketing capabilities of the company.

This method takes into account the various specific needs of customers (for example, automotive plants, electronics industries, banks, etc.)

Benefits of Multiple Segmentation consist in an expanded assortment, which enables the company to significantly increase its turnover by involving several market segments in the production and sale of goods, which allows you to have potentially higher profits, as well as conducting parallel work with several segments can actually reduce the threat of deterioration in the performance of the company , due to the emergence of a powerful competitor or a change in consumer preferences. The loss of one segment of the market will not be so painful for the entire company. At this time, you can successfully work in other market segments and carry out technical re-equipment or reconstruction of production, update the range or improve quality. This method is used mainly by large companies that have the necessary material, financial and labor resources.

The method of multiple segmentation involves the study of potential market segments where the company is going to work. A thorough study of the needs of consumers in different segments is quite expensive. However, if successfully researched and accepted right decision the company receives significant advantages over competitors, and consequently, impressive results.

8. Selecting target segments

Carrying out marketing segmentation enables the company to determine the various market segments in which it will participate.

1) decide how many market segments it should occupy;

2) it is necessary to determine the most profitable segments for it.

To do this, the company can use the following strategies:

1) undifferentiated marketing;

2) differentiated marketing;

3) concentrated marketing.

CEOs of small firms usually choose the third option for a market coverage strategy, taking into account some factors:

1) the company was created recently and (or) its resources are severely limited;

2) provision of various services.

When choosing a target segment, it is advisable to use the following segment analysis methods:

1. AID - automatic determination of relationships by sequential comparison according to specified parameters (criteria).

2. Cluster analysis - consistent association of consumers (over 200) into groups with subsequent study.

3. Factor analysis.

4. Joint analysis - analysis of the consumer's choice of preferred goods (services).

Evaluation of a market segment consists in the attractiveness of the segment: analysis of current sales volumes and expected profit for each segment; size and potential for long-term growth; knowledge of your competitors; availability of goods - substitutes;

It is also necessary to identify the strengths of the company.

So, the end result of the firm in choosing target segments is that it determines the segment or segments on which it will concentrate its efforts.

9. Classification of consumers

One of the main goals of marketing is to conduct a competent strategy for promoting goods on the market, where it is very important to identify the most significant, large target groups of consumers who differ from each other, but have common intra-group interests (needs, needs).

Five types of consumers are defined:

1. Individual - these are consumers who purchase goods only for their personal needs. For example, single people or citizens living independently.

Items for individual use are clothes, shoes, personal items (except for purchases as a gift). First of all, these consumers are interested in the consumer qualities of the goods: usefulness, price, appearance, packaging, service, guarantees. However, at the moment the market for individual consumers in Russia is relatively narrow.

2. Families or households are a group of buyers of food and non-food items, excluding personal items. Decisions are made jointly by the spouses or the head of the family.

3. Intermediaries are a type of consumers who purchase goods for subsequent resale. Intermediaries are not interested in consumer qualities of the goods, they are concerned with exchange characteristics - price, demand, profitability, speed of circulation, shelf life, etc. Intermediaries are more professional buyers, in contrast to families and individual consumers. The demand presented by them can be both rather broad and rather narrow.

4. Suppliers or representatives of firms, i.e. buyers of industrial goods. They buy goods for their further use in production, so everything is taken into account: price, quantity, speed of delivery, transportation costs, completeness of the assortment, the company's reputation in the market, the level of service, and much more.

5. Officials or government workers. The peculiarity lies in the fact that when purchasing this or that product, the official manages not his own money, but state money, and, therefore, this procedure is bureaucratized and formalized. Important criteria when choosing a supplier or manufacturer is reliability, loyalty, honesty, personal connections, etc.

The international market also highlights such a type of consumers as foreign legal entities and individuals.

There is also traditional classification consumers according to the following criteria.

1. Gender: there are products with a clear gender - bras, dresses, electric shavers, smoking pipes, shaving foam, etc. There are male and female models: cigarettes, deodorants, trousers, shirts, etc.

2. Age.

4. Education.

5. Socio-professional criterion.

6. Responsiveness to new information or the emergence of a new product on the market. It is customary to divide consumers into the following groups:

1) "innovators" - consumers who dared to try a new product;

2) "adepts" - followers who make the product fashionable and famous;

3) "progressives" - consumers who provide mass sales at the stage of product growth;

4) "skeptics" - connected to demand at the stage of saturation;

5) "conservatives" - show demand when the product becomes "traditional".

7. Personality type: there are four main psychological types - sanguine, phlegmatic, choleric, melancholic. Practical use This classification in marketing is quite difficult, since it is difficult to determine the type of personality with the help of 10-12 test questions.

8. Lifestyle: analysis of values, relationships, rhythm of life, personality behavior.

10. Characteristics of buyers that influence their buying behavior

One of the main tasks of a marketing specialist is to identify those who make the decision to make a purchase.

The decision to purchase a particular product is made by a person (or group of persons) who has a common goal and shares the risk associated with making this decision.

For certain types of goods (services), it is relatively easy to identify such persons. For example, a man usually decides for himself which brand of cigarettes to buy, and a woman decides which brand to prefer when choosing lipstick. Decisions related to determining the place of family vacation or buying an apartment are likely to be made by a group of people, consisting of a husband, wife and adult children. Therefore, the marketing specialist should determine as accurately as possible the role of each family member in decision making, which will help him in developing product characteristics.

There are several roles that a person plays in the process of making a decision to purchase a product:

1) offer initiator;

2) the decision maker;

3) a person exerting influence;

4) the buyer;

5) user.

So, in the process of deciding to acquire a computer, the proposal may come from a child (teenager). Each member of the family can have some influence on the decision or any of its components. Husband and wife make the final decision and, in fact, become buyers. All family members can be users.

To determine the roles of buyers, marketing specialists conduct research on various participants in the decision-making process. Mostly a survey is used. It is important to determine the relative influence of different family members on the buying process. For example, J. Herbst identifies four types of families.

1. Each family member accepts equal amount independent decisions.

2. Families where the husband makes most of the decisions.

3. Dominance of the wife's decisions.

4. Joint decision-making (syncretic).

There are all four types of families on the market, but their ratio changes over time. AT modern society due to the growth of incomes, education, there are more and more syncretic families and less and less with the dominance of the "masculine principle". This circumstance must be taken into account when choosing and developing a marketing strategy.

Another important characteristic of the buyer is the period of the family's life cycle. Seven periods have been identified:

1) bachelor period, unmarried;

2) young families;

3) young families with a child under the age of 6;

4) young families with children under the age of 6;

5) married couples living with minor children;

6) elderly couples living separately from their children;

7) elderly loners.

Any family at a certain point in its life cycle has certain needs. For example, a young family with a minor child under the age of 10 is the main buyer washing machines, televisions, kitchen appliances, toys, while a family with adult children acquires expensive video and audio equipment. Depending on the life cycle of the family, the roles of individual family members may change, and accordingly, their influence on decisions made also changes.

11. Personal and psychological factors

There are four groups of factors that have a direct impact on purchasing behavior: personal, psychological, social and cultural.

Let's take a closer look at the first two.

Personal factors include: age, gender, income of a person, stage of the family life cycle, nationality, profession, lifestyle, personality type, etc.

Life style refers to a person's life stereotypes (his interests, beliefs, personal opinions). Sometimes it is quite difficult for marketers to study this factor. For this, special marketing programs are specially developed, within the framework of which research is carried out.

Human- this is a person, therefore, over a relatively long period of time, his reactions to the influence of the external environment are practically constant. Personality type is characterized by such traits as self-confidence, independence, sociality, active (or passive) behavior, adaptability, etc. For example, when conducting research, coffee producers found that active coffee consumers are quite highly social individuals.

Psychological factors include: motivation human behavior, perception of the surrounding world.

The study of motivations (or motives) is necessary, since this is what motivates a person to make a purchase.

Marketers are looking for an answer to questions such as: “Why is this purchase made?”, “What is the basic need the buyer wants to satisfy with this product?” etc. motive It is the need that motivates a person to satisfy it. When studying the motives of human behavior, it is used motivational analysis based on the theory of Z. Freud and A. Maslow.

Z. Freud studied the process of making decisions about the purchase by the consumer. He believed that important consumer motives are embedded in the subconscious and that the buyer cannot always justify this or that choice.

According to Z. Freud, a person from birth is under the pressure of many desires that he is not able to realize and control, that is, the individual is never fully aware of the motives of his behavior.

A. Maslow in his theory of motivation developed a hierarchical system of needs and explained why people at a certain point in time have different needs.

He built the system of needs according to the principle of importance:

1) physiological (need for food, clothing, housing);

2) self-preservation (protection, safety);

3) social (belonging to a certain social group, in love);

4) in respect;

5) in self-affirmation (the need for self-development, self-realization).

A person satisfies needs according to their importance. For example, a hungry person first of all tries to satisfy his need for food, rather than the need for his respect and the love of others. And only after satisfying his important need, he moves on to satisfy the next less important need. This knowledge is used in assessing the possible behavior of different consumer groups, as well as in motivating employees.

Perception- this is how a person interprets the information received from the outside. It is necessary to take into account the internal motives of buyers, tips from other consumers in the process of stimulating demand.

Beliefs is a person's idea of ​​something. It is based on knowledge, faith, experience, opinion. This is one of the important knowledge that marketers need to have.

Relations- these are different assessments, feelings in relation to specific objects and ideas. They have a strong impact on human behavior, they are difficult to change, but must be taken into account when forming the marketing policy of the company, trying to bring them as close as possible to certain relationships.

12. Model of buying behavior

The buying behavior model includes the following categories:

1. Motivating factors of marketing (product, its price, methods of distribution and sales promotion).

2. Other irritants (economic, political, cultural, social, scientific and technical).

3. Consciousness of the buyer (his characteristics and the process of making a decision to buy).

4. Buyer responses (product selection, trademark, supplier, time of purchase).

The process of purchasing a particular product includes the following steps:

1. The emergence of a need: the need arises under the influence of external and internal factors. For a person to undertake specific actions, his need must reach a certain level of intensity, i.e., displace or suppress other desires. The marketing specialist must find out what needs the buyer satisfies by purchasing this product, and also with the help of what activities the intensity of the need can be increased.

2. Information search: to meet the emerging need, a person needs relevant information about a particular product. Depending on the intensity of the need, two states of a person are distinguished: heightened attention(increased attention to the information that is associated with the satisfaction of his needs) and the state of active search for information (when the intensity of the need becomes aggravated, a person deliberately begins to look for information about the product of interest to him).

Sources of information:

a) personal (friends, family, acquaintances, neighbors);

c) public (media);

d) empirical (use of goods, experiment, test).

3. Evaluation of information: a person correlates the information received with his capabilities and forms an appropriate attitude towards this product.

4. Making a purchase decision: assessment of the information received about the product, as well as taking into account the influence of various factors on the behavior of the buyer regarding the purchase. A marketing specialist must provide the consumer with the necessary information and draw his attention to those factors that will help motivate him to buy, that is, help him buy a particular product.

5. Impressions after purchase. The impression of the purchase of goods can be different: from complete satisfaction to complete negativity for this purchase. The marketer must do everything so that the buyer is not disappointed in his choice.

There are main directions for studying consumers:

1) the attitude of the consumer to a particular company;

2) attitude to various aspects of its activities;

3) the level of satisfaction of needs;

4) intentions of buyers;

5) making a purchase decision (see the previous section);

6) the behavior of the buyer in the process of making a purchase and after;

7) motives of consumer behavior.

The consumer's assessment of the information received about the product is formed either on the basis of existing knowledge or on the basis of evoked emotions.

With the help of various marketing methods, marketers study the attitude towards their product. This is necessary in order to correct the actions of the company in the market in time.

Two main approaches are used in determining the type of customer relationship to a product:

1) revealing preferences;

2) identifying propensities to buy a particular product.

For example, there are two product models on the market: A and B. With the help of the question “Which model is more preferable for you?” customer preference can be identified. You can identify the propensity to buy by asking the question “Which model are you most likely to purchase?”. The consumer may prefer model A, but due to the lack of the required amount of money (or other factors) buy model B.

Also, an important direction in the study of consumers is the value system, which they are guided by when choosing a product.

It is necessary to conduct an in-depth analysis of the degree of customer satisfaction, by compiling a satisfaction map. To do this, calculate the average value of the level of satisfaction for the given indicators and the standard deviation for each of them. And the analysis is carried out by comparing the obtained data. Using this technique, you can get a fairly complete picture of the market's perception of the quality of the product, its price, level of service, etc.

In addition, it is important to regularly measure customer satisfaction (and dissatisfaction) and find out the reasons for dissatisfaction.

The idea of ​​market segmentation was first proposed by W. Smith in 1956. Emphasizing the importance of segmentation for practical activities in the market, marketers argue that competent competition begins with a qualified market segmentation.

Market segmentationdivision of consumers with their numerous and complex needs into narrow, uniform requirements groups.

Market segmentmarket sector, a group of consumers with certain similar characteristics, significantly different from all other market sectors and consumer groups.

The need for segmentation is determined by market pressure:

If economic growth is observed, then the segmentation process becomes more complicated, which is explained by the growth of needs and opportunities to satisfy them;

If the economic situation worsens, then the segmentation process is curtailed, which is explained by a decrease in the level of satisfaction of the needs of the majority of consumers.

Purpose of segmentation- the identification of each group of buyers of relatively homogeneous needs for goods and the organization, in accordance with this, of the commodity, price, and marketing activities of the enterprise.

Purpose of analysis in segmentation– identification of a niche, its development and subsequent development in the fight against competitors. The effectiveness of segmentation analysis is evaluated using the following factors:

The possibility of a comparative assessment of the market relative to other markets, the commensurability and identifiability of markets;

Significant size of the prospective market, which makes it possible to single out at least two types of consumer behavior, and the capacity of the segments, sufficient for the program for the formation of targeted marketing designed for these segments, to become a real sense;

Existence of sales promotion tools suitable for influencing market segments;

Responsiveness of consumers to external influences.

Various criteria are used to define segments (Table 3.8). The segment selected in the course of marketing research should offer good prospects for further development enterprises. In this regard, the implementation of segmentation is due to the strategic goals of the manufacturer.

The indicators that determine the effectiveness of the performed segmentation include:

Adequate to the needs of the manufacturer market size;

Weak communication between segments;

Low competitiveness of goods and services offered by competitors;

Persistent differences between segments;

Low additional costs for servicing the segment;

Significant need of the segment for the goods and services of this manufacturer.


Table 3.8

Criteria for determining the market segment



When segmenting the market, there are various signs. Some of them are presented in Table. 3.9.


Table 3.9

General signs of market segmentation



The main advantages of market segmentation:

Creation of new products that meet market demands;

Determining effective sales promotion strategies;

Assessment of competition in the market;

Objective assessment of existing marketing strategies.

The main disadvantages of market segmentation:

Conclusions regarding market segmentation characterize only the average trend of consumer behavior;

Consumer lifestyle diversity since the 1980s makes it difficult to segment in many markets;

Segmentation does not solve problems associated with insufficient attention to other elements of marketing. Even the most accurate segmentation is of no value if the organization has not developed strategies for the formation of an assortment, sales promotion, pricing, and product distribution.

When conducting segmentation, it is necessary to select segmentation features, taking into account the differences between the markets for consumer goods (Fig. 3.5) and industrial products (Fig. 3.6).

Segmentation according to those indicated in Fig. 3.5 features for individual consumption goods are:

segmentation by application- dividing the market into groups in accordance with the circumstances, the motive for making a purchase;

benefit-based segmentation- dividing the market into groups depending on the benefits, benefits, advantages that the consumer sees in this product;

segmentation by user status- dividing the market into groups depending on the degree of regularity in the use of a product by its users, among which there are those who do not use this product; former, potential, regular and new users;

segmentation by intensity of consumption- dividing the market into groups of weak, moderate, active consumers of a particular product;


Rice. 3.5. Segmentation features for consumer goods


Rice. 3.6. Segmentation features for industrial goods


loyalty segmentation- dividing the market into groups in accordance with the commitment of consumers to a certain brand of goods, measured by the number of repeated purchases of goods of this brand;

segmentation by stage of readiness of the buyer- classification of buyers into ignorant and knowledgeable, well-informed about the product, interested in it, unwilling and unable to purchase this product.

In Russia, segmentation of consumers depending on their ability to pay is very common.

General rule for segmentation: it can be carried out on the basis of one criterion, as well as through the sequential application of several criteria.

In practice, six types of market segmentation are used (Table 3.10).


Table 3.10

Types of market segmentation



Segmentation is successful if a market window is identified or a market niche is identified.

market window- groups of consumers whose specific needs cannot be directly satisfied by a product specially created for this purpose, but are satisfied as a result of the use of other, similar products.

market niche- a segment for which the goods of this company are optimal and their delivery seems to be the most appropriate. Has a high level of specialization.

Market niches can be quite profitable due to the high level of quality in meeting the specific needs of a limited number of consumers at higher prices.

The algorithm for forming a product niche is shown in fig. 3.7.


Rice. 3.7. The sequence of actions when creating a market niche


There are two approaches to forming a market niche:

vertical niche- the sale of a given product or a group of functionally similar products to different groups of consumers;

horizontal niche- satisfaction of various needs of consumers in goods and services that are functionally independent of each other.

A market niche can eventually become a large market segment or even a strategic business area.

In marketing practice, various strategies for market segmentation are used (Table 3.11).


Table 3.11

Market Segmentation Strategies


    The concept of market segmentation

    Selection of target market segments

    Product positioning.

    Market niche.

1. The concept of market segmentation

In modern conditions of market development, it is almost impossible to satisfy all consumers with the help of one product or service. Everyone has their own desires, interests, expectations from the product. Therefore, companies need to take into account the differences in the requirements and expectations of consumers when developing a marketing strategy and marketing mix. This can be done by dividing the market into specific groups, each of which includes consumers with common characteristics and similar needs for certain goods and services. The identification of these groups is called market segmentation.

An enterprise in its activities can focus on the entire market or on individual market segments. The task of marketing is to help the company find its place in the market.

Under segmentation understand the division of the market into separate segments, differing either in their parameters and or in their reaction to certain types of activities, or in some other way.

Market segment- this is a specially allocated part of the market, a group of consumers, goods or enterprises that have some common features.

Market segmentation is one of the functions in the system of marketing activities and is associated with the implementation of work on the classification of buyers or consumers of goods that are on the market or displayed on it. The main goal of segmentation- "revive" by focusing on the consumer designed, manufactured and sold the flow of goods (services) in a specific market segment.

The splitting of the underlying market is done in two steps, which correspond to two levels of market splitting.

At the first stage, which is called macro-segmentation, the “product market” is identified.

In the second step, called micro-segmentation, within each previously identified market, customer segments are identified (i.e., the selection of small areas of the underlying market to apply the company's marketing efforts to).

The segmentation process consists of the following steps:

Analysis of the market and marketing opportunities of the company

Study of segmentation criteria

Market segmentation

Market environment analysis and target market selection

Choosing and planning a strategy for the company's behavior in the market

Assessment of attractiveness and selection of target market segments

Positioning of goods on the market

Marketing mix planning

Marketing mix development

Organization of the company's activities in a new market segment

Segmentation goals:

The best satisfaction of the needs and requirements of people, fitting the goods at the request of the buyer

Strengthening competitive advantages

Ensuring the rationalization of costs for the production and sale of products

Orientation of all marketing work to a specific consumer

Linking the science and technology firm to customer needs

Avoiding competition by moving into an undeveloped segment.

Pre-segmentationFirst stage marketing research, focusing on the study of the maximum possible number of market segments.

Final segmentation- the final stage of market analysis, the conduct of which is regulated by the capabilities of the company itself and the conditions of the market environment. It is associated with the search for optimal market segments in order to position products on them that meet consumer demand and the capabilities of the company.

Depending on the type of consumer of goods or services, segmentation of consumers of consumer goods and consumers of goods for industrial purposes is distinguished.

Thus, the consumer segment in the market of the firm's products consists of consumers with similar needs and behavioral or motivational characteristics, which creates favorable marketing opportunities for the firm.

The main purpose of segmentation is to ensure targeting of the product being developed, produced and sold. By means of it, the main principle of marketing is carried out - consumer orientation.

Market segmentation in marketing is a set of actions aimed at dividing the consumer into different groups, they are also market segments. Such a policy is carried out by many analytical departments or marketing departments in large organizations. Segmentation allows you to more clearly understand which consumer should be directed to advertising, and, accordingly, what types and methods of advertising should be used. And although segmentation is carried out mainly only by large companies, it is useful to absolutely all firms, regardless of the size and direction of activity. You can read more about what marketing is in the article:

Thanks to market segmentation in marketing, the entire mass of potential consumers is divided into groups according to different criteria. For example, it can be age, gender, nationality, etc. Moreover, each of these groups receives a certain status. There are three such statuses:

1. Segments with a priority consumer. As you might guess, all members of this group are the main customers of the company that conducts segmentation. For example, for car manufacturers, these are middle-aged people (30-40), and for manufacturers of women's cosmetics, girls and women under 40-50 years old. Of course, the data is usually inaccurate, but it is enough to determine the main direction of marketing.

2. Segments with an impossible consumer. This group is the opposite of the first. Under no circumstances will its representatives use your services or they will, but in small volumes. An example is black caviar for low-income people or cheap clothes for rich members of our society.

3. Alternative segments. Representatives of these groups, for the most part, do not use services of a certain kind, but they can use them with proper marketing. Many marketers classify such people as the second type of segments, but in fact, they can bring significant profit. Just think that there is a mass that, under certain circumstances, can start buying goods from you, while ignoring your competitors, because it was you who attracted them. For example, why not run a jewelry marketing campaign to young people, or try to sell computer games adult generation. To achieve a positive result, you need to conduct really professional marketing, but if everything works out, your income will increase significantly.

Why is market segmentation important in marketing?

1. Directed marketing is usually much more effective than general marketing. If you know who your main consumer is, then you will only do the advertising that has the greatest impact on him. So, for example, it is better to attract young people through social networks and older people through newspapers, magazines and TV advertisements.

2. In addition to efficiency, targeted marketing also has a better price. You only pay for the ads that your potential customers read, while with general advertising you are wasting a lot of money. If your main client is teenagers, then why pay for a commercial between Wait for Me and the soap opera Wedding Ring?

3. Any company sooner or later conducts market analytics in order to improve work efficiency. So it's much more convenient if you know who buys your product. Then you just have to analyze the preferences of a certain group of people, and not try to please absolutely everyone.

4. Knowing who uses your services, you can determine why this is happening. And knowing the answer to this question, you will understand what needs to be done to increase sales efficiency.

Segmentation is a complex system!

As a rule, when segmenting the market in marketing, it is not enough to define a group of potential consumers by one criterion. You need to take into account several characteristics at once and determine the segment you need more accurately. For example, these may be elderly males with low incomes or middle-aged women who are on a business trip. In this case, you do not have to choose one group at all. Basically, large companies have dozens of such specialized segments that marketers work with. For example, the tenants of an inexpensive apartment can be young students, employees of firms with average incomes on a business trip, young families with average incomes, etc.

Statistics are an important element of segmentation!

Without a large amount of statistical data, it is impossible to carry out normal segmentation. As a rule, there is a lot of information in the public domain about what product or service is popular among a particular population group. If there is no data of interest to you, you will have to conduct research yourself. The best option for this is social surveys. They won't cost you a lot of money to run, and the results will be fresh and relatively accurate. Many organizations post opinion polls on their official website or ask customers to fill out a questionnaire. Having received the necessary statistical data, you can easily segment and select groups of potential consumers.

What are the segment groups?

In modern marketing, there are many groups among the population, and no one forbids entrepreneurs to create new ones. Following are the main ones:

1. The most traditional classification of the population is by age. You can single out young people, middle-aged people and the elderly, or you can decompose the entire society into a larger number of age groups. As a rule, over the years, people's preferences change, just like their income, so most companies segment the consumer market first of all by age.

2. The division of the population depending on gender is also quite popular among marketers. So, men are unlikely to buy women's cosmetics or clothes, and women will not be regulars in hardware stores or bookmakers.

3. Revenue is an important part of any segmentation system. If a person receives little, then there is no point in trying to sell him an expensive car or a precious ring. Conversely, if a person earns a lot, then you do not need to attract him with sales and five percent discounts on discounted goods. Selling Zhiguli or cheap jewelry to such people will also fail.

4. A person's occupation often determines his tastes. So, businessmen prefer to dress in solid business tuxedos, which cannot be said about the workers at the factory. If these are education employees, then they will be regulars in stationery and bookstores.

5. The physique of a person is an important characteristic for manufacturers and distributors of clothing. Statistical data of this kind can be found in the public domain, and they are constantly updated as a result of scientific research. Assessing which people are more in a particular region, you should plan the volumes of each of the sizes of a particular clothing.

6. Having the statistics of human tastes and preferences, you can conduct really competent and effective marketing. Unfortunately, obtaining such information is very difficult. We will have to conduct mass opinion polls, and it is not always possible to achieve an objective result, because sometimes people themselves do not understand what they want.

7. Another important indicator for segmentation is the permanent place of residence of a person. If he came from afar to rest, then he is a potential consumer of apartment landlords and souvenir shops. But a person who permanently lives in a particular city is unlikely to buy fridge magnets with the image of the sights of this very city.

Segmentation requires imagination!

The number of options for dividing into groups depends only on your imagination. The population can be classified according to completely different criteria that matter only in your field of activity. For example, you can divide people into those who wear watches and those who do not wear them. The bottom line is that when sewing shirts for the first, you can’t make the button on the sleeve fasten too tightly, because in this case a person will not be able to see the time without unbuttoning it. And there are a lot of options, believe me.

One of the main areas of marketing activity is market segmentation, which allows the company to accumulate funds in a certain area of ​​its business. To date, in the economic literature, the concepts of the target market and the target segment are quite clearly defined, the selection of which is the main goal of market segmentation.

The target market is the potential market of the firm, which is defined by a set of people with similar needs for a particular product or service, sufficient resources, and the willingness and ability to buy.

A target segment is a homogeneous group of consumers in a firm's target market that share similar needs and buying habits with respect to the firm's product.

Thus, market segmentation is the breakdown of the market into clear groups customers, each of which may require separate products and / or marketing mixes.

Segmentation goals.

Any activity of people pursues certain goals, including market segmentation. There are three purposes of segmentation. The first follows from the fact that the company is not able to master the entire market, and is forced to be content with only part of it. Having singled out this part through segmentation, she gets the opportunity to purposefully concentrate her efforts on those groups of buyers that will be more attractive to her.

The second goal is due to the fact that the identified group of buyers (target market) may be partially inaccessible to the company due to the actions of competitors. An analysis of the capabilities of competitors in the structure of selected segments makes it possible to identify those in which competitors are either less active or buyers are skeptical about their products. These segments, if the company does not want to fight competitors, will be the most preferable for it.

The third goal of segmentation is reasonable in cases where the market does not have a complex multidimensional segment structure. Its essence lies in the fact that if there are few segments, the company should strive to ensure that it has its presence in each of them, i.e. offer each segment a special, most suitable product model for it.

In other words, the purpose of segmentation is to single out one or more target groups of consumers, for which the entire range of marketing activities is "sharpened" - from product development and branding to the choice of tone and media of marketing communications. The purpose of segmentation is to increase the company's profit by increasing competitiveness in a particular segment.

Several important conclusions can be drawn from this:

  • 1. To assess the feasibility of segmentation, it is necessary to be able to assess the demand in the selected segments.
  • 2. The segment must be large enough and must exist for a long enough time that investments in strengthening the competitiveness in this segment lead to a corresponding increase in sales.
  • 3. The profitability of working with the segment should be sufficient. That is, the costs of logistics and communications with the segment should lead to the desired profit.

Actually, it is these conclusions that underlie the principles of effective segmentation formulated by the classics.

Market segmentation is the activity of identifying potential groups of consumers of a particular product of an enterprise.

Rice. one.

This kind of market segmentation is general character and can be applied when planning various areas of marketing activities.

Note that the above scheme of market segmentation corresponds to the approach proposed by Lambin and takes into account macro-segmentation to identify the base (otherwise, target) market and micro-segmentation to determine the target segment of the enterprise. This scheme, in turn, is a development of segmentation schemes proposed in other studies.

Segmentation principles.

The principle of difference between segments - the main goal of segmentation is to obtain groups of consumers that differ from each other. Accordingly, each resulting segment must have a set of unique characteristics.

The principle of similarity of consumers in the segment is the homogeneity of potential buyers within the segment in terms of the goals of segmentation tasks. The segments resulting from segmentation should be fairly homogeneous - differences between consumers within a segment should be less significant than differences between segments.

Large segment principle - target segments must have sufficient potential capacity to be of commercial interest to the company. It is necessary to find a balance between taking into account all significant factors, on the one hand, and the size and number of resulting segments, on the other.

To conduct successful market segmentation, it is advisable to apply the five principles tested by practical activity:

  • 1. differences between segments
  • 2. consumer similarities
  • 3. large segment size
  • 4. measurability of consumer characteristics
  • 5. reachability of consumers.

The principle of distinction between segments means that as a result of segmentation, groups of consumers that differ from each other should be obtained. Otherwise, segmentation will be implicitly replaced by mass marketing.

The principle of similarity of consumers in the segment provides for the homogeneity of potential buyers in terms of purchasing attitudes towards a particular product. Consumer similarity is necessary so that an appropriate marketing plan can be developed for the entire target segment.

The requirement for a large segment size means that the target segments must be large enough to generate sales and cover the costs of the enterprise. When assessing the size of a segment, one should take into account the nature of the product being sold and the size of the potential market. So, in the consumer market, the number of buyers in one segment can be measured in tens of thousands, while in the industrial market, a large segment can include less than a hundred potential consumers (for example, for cellular or satellite communication systems, for consumers of power engineering products, etc.).

The measurability of consumer characteristics is necessary for targeted field marketing research, as a result of which it is possible to identify the needs of potential buyers, as well as to study the reaction of the target market to the marketing actions of the enterprise. This principle is extremely important, since the distribution of goods "blindly", without feedback from consumers, leads to the dispersion of funds, labor and intellectual resources of the seller.

The principle of reachability of consumers means the requirement for the availability of channels of communication between the selling firm and potential consumers. Such communication channels can be newspapers, magazines, radio, television, outdoor advertising media, etc. Reachability of consumers is necessary for organizing promotional campaigns, otherwise informing potential buyers about a particular product: its characteristics, cost, main advantages, possible sales, etc.

The basis of the market segmentation procedure, along with the application of segmentation principles, is the reasonable choice of the appropriate segmentation method.

Approaches to market segmentation.

There are two approaches to market segmentation. In the classical approach, segmentation of the entire market is carried out. That is, the market is divided into segments in accordance with the maximum number of selected criteria. This method allows you to cover the entire market and cover all segments with one analysis. It is necessary to consistently deepen segmentation with analysis at each stage. Thus, the analysis is carried out to the required depth and the accuracy of the analysis is not lost.

The second approach is necessary if it is not possible to segment the entire market or it is impractical due to insufficient resources to process all possible segments. Take, for example, the ice cream market. No one interferes, having found out the difference in the behavior of representatives of any particular segment, to single it out. If the volume of demand in it can be determined, thanks to the available (or possible to obtain) data. Let it be at least children of 10-15 years old who prefer to play pirates. If it is possible to determine the potential demand that they can provide, and estimate which part of them will prefer new variety ice cream "young pirate". Why not release it for sale. it creativity, which can be used for some markets and which complements the full segmentation method.

To implement segmentation, a company needs to test segmentation options based on different variables, one or more at a time, in an attempt to find the most useful approach to consider the structure of the market. For this, it is used factor analysis, which explores the influence of various factors on the result and allows you to choose exactly those factors that have the maximum impact on the final result. All approaches to market segmentation can be divided into two types:

Unordered selection of segmentation criteria. The choice of segmentation criteria is carried out arbitrarily. It is used in a situation where it is difficult to build a hierarchy of segmentation criteria, or there is not enough data to build it.

multistage approaches. Construction of a hierarchical system of criteria based on the assessment of importance for segmentation. There are two or more levels of criteria through which segmentation is carried out. An example is the micro-macro model proposed by Wind and Cardoza (1974). At the first, macrostage, general factors are used - the demographic characteristics of the population, geographical position, consumption activity, etc. The microstage consists in defining segments within macrogroups based on the characteristics of the decision makers. Another example is the nested model of Bonom and Shapiro (1983).

Market segmentation is necessary for market-oriented companies for the following main reasons: different groups of people have different needs and therefore the company needs to adapt the product for each group; the company must position its products in a specific way for each group; the company must select the appropriate price for each of the groups; some groups may require special sales channels.