A Market consists of customers. They have needs to satisfy, money to spend and willingness to buy products. No product can satisfy the needs of all the customers in the market. Customers vary in needs, characteristics, buying behaviour, purchasing power and preferences.Market can be divided in following manners:
1. Consumer Markets: The reasons for buying products are own personal or household use. They consist of ultimate consumers. Most products are branded for this market.
2. Business Markets: The reasons for buying products are business use, resell, or to make other products. They consist of industries, business, retailers, etc. Buying is done by professionals.
Market segmentation is the process of dividing the total market into large homogeneous groups of customers who share similar needs and characteristics.
Segmentation implies:
- Division of total market into groups
- The groups should be large enough for marketing purposes.
- The groups should be homogeneous with same preferences.
- The customers in a group should have similar needs and characteristics
Posts
No Response to "Definition of Market Segmentation"
Post a Comment