Steps Of Market Segmentation

Market Segmentation is the process of dividing the target market into groups of smaller segments using certain parameters in order to understand the customers and target different products and services to reach the buyers in that segment, thereby shrinking the sales cycle, increasing revenues and increasing the customer retention rate.
The three steps in the marketing segmentation process are Segmentation, Targeting and Positioning.
The first step of Segmentation can be broken down into two simple points as identifying segmentation variables and segmenting the marketing, and developing profiles of resulting segments. But, it is not as simple as they sound. A market segment is a group of customers who share similar values and/or beliefs. Segmentation has four famous approaches, namely geographic, demographic, psychographic, or behavioral scale. Geographical segmentation is the act of marketing the products to a region, or country depending on variables such as language spoken, traditions, population, and climate. Demographic segmentation is the act of segmenting on the characters such as age, gender, population, income, family size, or nationality. Psychographic segmentation segments …show more content…
Products based on functionality are positioned based on their attributes, or performance. Products based on emotionality require marketing the tone that will appeal to the customers and gives them a sense of pleasure or something from which they can benefit. Usage characteristic positioning markets the products or brand in a way that describes the brand or product to have the ultimate utility that other competitor brands’ products cannot overcome. This characteristic demonstrates the sign of dependability and helps grow a positive positioning. Lastly, not being the competitor is the positioning that differentiates the brand or product from the competitor and provides the consumers with an alternative option that exists in the