catalogue
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1 the significance of market segmentation
2 the basic principles and basis of market segmentation
3 the role of market segmentation
Four steps of market segmentation
5 conditions for market segmentation
6 methods of market segmentation
7 target market selection strategy
Case 8: The marketing case of Miller Company in the United States.
9 related projects
[Edit] The meaning of market segmentation
Market segmentation refers to the market classification process that marketers divide the whole market of a product into several consumer groups according to the differences of consumers' needs and desires, buying behaviors and buying habits through market research. Every consumer group is a market segment, and every market segment is a group of consumers with similar demand tendencies.
Procedures for market segmentation
Investigation stage
Analysis stage
Subdivision stage
The basis of subdividing the consumer market
Geographical subdivision: country, region, city, countryside, climate and topography.
Population breakdown: age, sex, occupation, income, education level, family population, family type, family life cycle, nationality, nationality, religion and social class.
Psychological subdivision: social class, lifestyle and personality
Behavior subdivision: opportunity, pursuit of benefits, user status, product utilization rate, loyalty, purchase preparation stage, attitude.
[Editor] Basic principles and basis of market segmentation
The market is the sum of commodity exchange relations and can be subdivided by itself.
The existence of consumers' heterogeneous demand
Enterprises have their own advantages in different aspects.
[Editor] The role of market segmentation
Market segmentation is not carried out according to product varieties and product series, but from the perspective of consumers (referring to final consumers and industrial producers), which is based on the theoretical basis of market segmentation, that is, the diversity and differences of consumer demand, motivation and purchase behavior. Market segmentation plays an extremely important role in the production and marketing of enterprises.
1, which is beneficial to the selection of target market and the formulation of marketing strategy.
After market segmentation, the market segmentation is more specific and it is easier to understand the needs of consumers. Enterprises can determine their own service targets, that is, the target market, according to their own business philosophy, policies, production technology and marketing strength. Aiming at the smaller target market, it is convenient to formulate special marketing strategies. At the same time, in market segments, information is easy to understand and feedback. Once the demand of consumers changes, enterprises can quickly change their marketing strategies and formulate corresponding countermeasures to adapt to the changes in market demand and improve their adaptability and competitiveness.
Lenovo's product segmentation strategy is based on clear product differentiation. Lenovo broke the traditional "package" promotion plan and launched different "segmentation" promotion plans for three brands: Popular, Tianjiao and jiayue, focusing on the needs of different user groups. Users who choose Tianjiao can buy a magic disk that allows data to move around, a 3 1 10 printer that can print digital photos wonderfully, a M700 multifunctional machine of SOHO, and a MP3 player that allows people to enjoy digital music. Users who choose "Popular" can buy "Data Special Zone" dual boot magic disk, special printer and "I can choose new songs" MP3 player at a discount. Users who love "jiayue" can buy the magic disk of "e-book bag", a printer to complete learning and printing, and an online school card under the guidance of a famous teacher, thus making an XP computer course for a computer expert.
2. It is conducive to opening up market opportunities and opening up new markets.
Through market segmentation, enterprises can analyze and compare the purchasing potential, satisfaction and competition degree of each market segment, and explore market opportunities that are beneficial to enterprises, so that enterprises can make production and relocation sales decisions or formulate new product development plans in time according to their own production and technical conditions, make necessary product technical reserves, grasp the initiative of product upgrading, open up new markets, and better meet market needs.
3. It is beneficial to concentrate manpower and material resources into the target market.
The resources, manpower, material resources and funds of any enterprise are limited. By subdividing the market and choosing the appropriate target market, enterprises can concentrate people, money, materials and resources to gain advantages in the local market and then occupy their own target market.
4. It is beneficial for enterprises to improve economic benefits.
The above three aspects can make enterprises improve their economic benefits. In addition, after market segmentation, enterprises can face their own target market and produce marketable products, which can not only meet market demand, but also increase income; Marketable products can accelerate the circulation of goods, increase the production batch, reduce the production and sales costs of enterprises, improve the labor proficiency of production workers, improve the quality of products and comprehensively improve the economic benefits of enterprises.
[Edit] Steps of Market Segmentation
Through the following examples, we can see the process of market segmentation:
An airline is very interested in people who have never flown (the subdivision standard is customer experience). People who have never flown can be divided into those who are afraid of flying, those who are indifferent to flying and those who have a positive attitude towards flying (the subdivision standard is attitude). Among those who have a positive attitude, there are also people with high income and the ability to fly (the subdivision standard is attitude). Therefore, the airline focuses on developing high-income groups who have a positive attitude towards flying but have not yet flown.
It can be seen that market segmentation includes the following steps:
1. The selected product market range. The company should make clear the market scope of its products in a certain industry, and make the market development strategy on this basis.
2. List the needs of potential customers. The variables that affect product market demand and customers' buying behavior can be listed from the aspects of geography, population and psychology.
3. Analyze the different needs of potential customers. The company should sample different potential customers and evaluate the listed demand variables to understand the customers' * * * needs.
4. Formulate corresponding marketing strategies. Investigate, analyze and evaluate all market segments, finally determine the market segments that can enter, and formulate corresponding marketing strategies.
[Edit] Conditions for Market Segmentation
The purpose of market segmentation of enterprises is to obtain greater economic benefits by positioning the differences of customer needs. As we all know, product differentiation will inevitably lead to a corresponding increase in production costs and marketing expenses. Therefore, enterprises must balance the income of market segmentation and the increased cost of market segmentation. From this, we come to the conclusion that an effective market segment must have the following characteristics:
Measurability. Refers to the measurable degree of purchasing power and scale of each market segment. If the segmentation variables are difficult to measure, the market cannot be defined.
Profitability. Refers to the newly selected market segment capacity of the enterprise is enough to make the enterprise profitable.
Accessibility. It means that the selected market segment must match the enterprise's own situation, and the enterprise has the advantage of occupying this market. Accessibility is embodied in information entry, product entry and competition entry. Considering the accessibility of the market is actually to study the feasibility of its marketing activities.
Difference. Refers to the market segments that can be distinguished conceptually, and have different reactions to different marketing mix factors and schemes.
Relatively stable. Refers to market segments with corresponding time stability. Whether the market segments can remain relatively stable in a certain period of time is directly related to the stability of production and sales of enterprises. In particular, large and medium-sized enterprises and enterprises with long investment cycle and slow production transformation are more likely to cause operational difficulties and seriously affect the operating efficiency of enterprises.
[Edit] The method of market segmentation
1. Single standard method
2. Dominant factor arrangement method
3. Comprehensive standard method
4. Series factor method
[Edit] Target Market Selection Strategy
According to the uniqueness of each market segment and the company's own goals, * * has three target market strategies to choose from.
1. indifferent marketing
Refers to a company that only introduces one product or only uses a set of marketing methods to attract customers. When the company determines that there is little difference in each market segment, it can consider adopting such a large number of marketing strategies.
2. Intensive marketing
This means that the company will concentrate all its marketing efforts on one or several favorable market segments.
3. Differentiated marketing
According to the characteristics of each market segment, the company correspondingly expands the colors, styles and varieties of some products, or formulates different marketing schemes and methods to fully meet the different needs of different consumers and attract different buyers, thus expanding the sales volume of various products.
Advantages: it can meet the needs of consumers in different regions in product design or promotion, increase the total sales volume of products, and give the company an advantage in subdividing small markets, thus improving the kitchen of the enterprise and establishing a good company image among consumers.
Disadvantages: it will increase various expenses, such as product improvement cost, manufacturing cost, management cost, storage cost, etc.
[Editor] Case: The marketing case of Miller Company in the United States
In the late 1960s, Miller Beer Company ranked eighth in the American beer industry, with a market share of only 8%, which was far from well-known brands such as Budweiser and Blue Ribbon. In order to change this situation, Miller Company decided to adopt an active marketing strategy.
They first conducted a market survey. Through the investigation, it is found that if the beer market is subdivided according to the usage rate, beer drinkers can be divided into light drinkers and heavy drinkers. The former has a large number of people, but the drinking amount is only 1/8 of the latter.
They also found that heavy drinkers have the following characteristics: most of them are blue-collar workers; Watch TV for more than 3 hours every day; Love sports. Miller Company decided to target heavy users and decisively decided to reposition Miller's "Heref" brand beer.
Relocation begins with advertising. First of all, they specially invited a "Miller World" column of TV station, and the theme of the advertisement became "We have as much beer as you have time" to attract those "beer cans". The advertising screen is full of exciting scenes: the crew are driving the ship in the fog attentively, the young people are riding motorcycles down the steep slope, and the drillers are struggling to stop the blowout.
As a result, the repositioning strategy of "Heref" has achieved great success. By 1978, the annual sales volume of this brand of beer reached 20 million cases, which was second only to Budweiser beer of AB company and ranked second in the United States.