Introduction

Hi my dear viewers welcome to OopiriFive Blogging platform post (7). In these blog I describe about Market segmentation and it advantages As well as I explore how this concept impact on business ventures.

So coming to this topic it most crucial information which is highly utilized tool to every business venture for purpose of company development and growth performance. As well as in this subject there is types of segmentations is present.

Subsequently I explain each segmentation with valuable examples.

So my dear audience let’s moving into the topic first initially we should know

market segmentation

what is segmentation?

• The segmentation is a process where combining customers into groups based on demographic, geographic, behavior graphic psychographic and these segments to allows a business to precisely reach a consumer with specific Needs and wants hence this known as segmentation.

market segmentation

Types of Market segmentation:

1. Geographic segmentation
2. Demographic segmentation
3. Psychographic segmentation
4. Behavioural segmentation

1. Geographic segmentation:

 Coming to The geographic segmentation the organizations do this segment based on nations, states, region, countries, cities, neighborhoods, zip codes .and also location of area and size of area, climate.

Guys I think you may get confused here but don’t worry I explore with detailed information about geographic segmentation for you to better to understand.

Here you should know one significant point that is Geographic segmentation is a sub part of demographic segmentation.

Now let’s forward to main topic of Geographic segmentation and how this market segmentation used for companies to develop.

The organizations will build their outlets and promotions campaigns to collect data from several locations after that they separate customers with their locations wise and track consumers with their similar needs according to that they make decisions on product promotions with area wise to get better growth in sales.

Example: there is one organization like trident the textile group

So for this company they have 500 stores in Indian nation from that several areas we choose two areas like Chennai and Madurai and from this two stores the company observe and collect sales data from these stores and analyze the data like which products are selling more in which locations like Chennai and Madurai

If suppose Chennai store is selling more products which compare to Madurai store

Absolutely the organization will make plan to increase their products quantity to supply for Chennai store hence they see to good margin profits.

2.Demographic Segmentation:

 Forwarding into demographic segmentation This process of dividing the market into groups based variables such as gender family size, income, occupation, and, awareness these known as demographic segmentation.

This strategy estimate that singles with same demographics will have same needs.

Example: there is one user generated company like YouTube and this organization give a chance to every individual to create content for post in YouTube from all overall world to generate revenue for both YouTube and creators

Here we need to notice some important aspects where YouTube make and those are

• The company provide content for all individuals with disposal income
• The organization kept age restrictions based on video which published by content creator.

3.Psychographic segmentation:

Moving into Psychographic segmentation it is based on the psychology related parameters such as Attitude, interest, opinion, and values of the target segment these known as psychographic segmentation.

This segment basically show focus on consumers values, interest and their attitude it means the company is used tool by assuming the parameters like

• What opinion is there for consumers about product.
• How much value is adding to that product and how much we are giving value to consumer?
• Finally the company see the attitude about consumers and their interest.

According to these parameters the company do the psychographic segmentation to  create the products and  make promotions.

4.Behavioural segmentation:

The bhevioural segmentation is a process which is related to consumer’s actions, taking patterns as well as market data these known as bhevioural segmentation.

And there is couple of patterns where consumer check while buying of product

• benefit sought of product:

          The mainly consumers can focus on benefits and features of the product because to increase they check warranty and guarantee on product for long life duration to maintain.

• They check cost and it is main reason to change the behavioural of customer towards the product.

market segmentation

Advantages of Market segmentation:

• Perfect understanding of consumer needs: it means the organizations identify and separate the group of consumers with their similar needs, choices and behaviours according to these they make easy to do tailor marketing on each segments.
• The companies mainly focus on customer satisfaction where they do unique needs to different segments so due to these the business can offer products to their consumer as per their preferences and needs.
• The companies should follow and focus in all segments for risk reduction

But you may get question  how it will works there is simply to say if company follow all segments in that one segment get downfall remaining perform well

• The companies do optimized product development by understand of variant market segments as well as they create and modify according to their needs of segments.
• The companies works on perfect price planning it means they will adjust according to purchasing power for those segments like they put high price on products  for applied to  high segment group later they give discounts to consumer to cover sensitive segment.

market segmentation

Conclusion:

So my dear comrades from overall market segmentation there is some important topic we have learned that importance of market segmentation, advantages of market segmentation and we get full clarity how these topic impact on business.

market segmentation