Market segmentation

With marketing, finding the proper customer has become easier. Marketer have tools for determining the customers they are dealing with. It is possible to evaluate what is your preferred customer base and develop it. As a result market segmentation is the best way to define the markets. The segments differs in wants and needs. They dont have the same buying behaviors. Depending on what you sell, you don’t usually have the same market segments as other companies. We might be able to figure out some important market segments yet.

First the location of a customer is an important factor to take into account. The area can be wide or narrow. A company can decide wether it will be present in a single area or in many areas. For example the blue ocean strategy takes this into account. Following this strategy, a company can take action on one specific area, with a lot of value, or on a large area, with a more spread out value.

A demographic segmentation, makes a marketer thinks in terms of age, gender, family, family life cycle, income, occupation, education, religion, nationality. This is the most popular way to divide customer. Needs and wants often vary depending on the demographic segment. If you are a male or a female you don’t go to the same brand, you don’t buy the same amount.

Another segmentation that marketers can do is the psychographic segmentation. In this segmentation the market is divided considering social class, lifestyle, or personnality characteristics.
The behavioral segmentation divides buyers according to their attitudes. It is possible to monitor the buying behavior of the customer and get in return the way they are buyin products. You can find loyal customers, and analyse their out and abouts of why they are buying your products. This will help you define what you can accomplish for them and what you can do to acquire new customers and retain the other ones.