Definition of Market Segmentation

Market segmentation is a technique that comes from marketing and involves dividing a commercial market into groups based on their characteristics and needs, in order to make it more identifiable when the time comes to have to know their needs and demands, and towards them direct the offer.

Technique born in marketing and that consists of dividing the market to identify the various consumer profiles into groups and direct the commercial campaign to the correct audience

Is methodology It is proven in efficiency and in terms of saving resources, since the efforts are directed towards that group that is known in advance, thanks to the study, will be a potential consumer of our products and services.

To carry out the division, it will be essential to carry out a study of the market in question and thus identify the various segments that share preferences within a heterogeneous universe, of course this.

The criteria on which this division is normally made are: social class, profession, gender, age, among others.

The way is to obtain large groups in order to ensure a wide demand and to be able to place them geographically in a specific place.

The market, composed of sellers and buyers and that implies the institution from which the transaction of goods and services is carried out is not uniform by any means, but is composed of a diversity of people, companies, who differ on different issues such as: age, culture, socioeconomic situation, style, personality, preferences and purchasing power, among others.

For this reason it is that from the marketing, the discipline which deals with the study of consumer and market behavior, given the impossibility of developing a plan that brings together all the heterogeneity that a market, it was decided to segment it, divide it into groups based on the characteristics they share and then, in relation to these conditions, it will outline a plan cash.

The aforementioned market partition is called in marketing market segmentation and it is one of the most precious tools that this specialty has when it comes to promoting products and services.

Reach out to who will buy the product

The basic and primary objective proposed by market segmentation is to to be able to reach each segment from specific and special activities that report benefits and of course an advantage over the competition.

Effectively reach the final consumer of the product or service in question, through the building of a message that is specially delineated for him and with which of course he will feel identified.

The idea is to make the promotion of products and services more effective, reaching the one who is presumed to buy the product and not wasting time with appeals to other market segments that would never buy the product, not because it is bad but because it does not fit their age needs, for example.

It should be noted that for the segments that result from fragmentation to be functional to the objectives that the company proposes, they must meet the following requirements: be measurable (It is feasible to measure situations such as: profiles and purchasing power), be accessible (that the segment can be easily reached), be substantial (the segment must be the most representative and largest) and be differential (the segments must be very different from each other). Such requirements are the key to segmentation and the success or not of the plan depends on them one hundred percent.

With some concrete examples we can better see how this procedure works.

If a cosmetic company is going to launch a luxury perfume, it must specify a message that is addressed to a segment that is made up of adults with high purchasing power.

If the objective is to market a new youth clothing brand, I will have to direct the commercial efforts to attract those young women who want to be fashionable.

And if an automaker launches a family car, she must combine her message with a clear and direct appeal to the comfort that it will offer to the company. family.

Topics in Market Segmentation