Question 1: What is market segmentation? What is its important role? Market segmentation: It is the process by which companies divide the entire market into different consumer groups based on the differences in consumer needs. Its objective basis is the heterogeneity of consumer demand. The main basis for market segmentation is customer groups with consistent needs in heterogeneous markets. The essence is to seek homogeneity in heterogeneous markets. The goal of market segmentation is to aggregate consumers with the same needs in markets with different needs.

The role of market segmentation:

Market segmentation is not based on product varieties or product series, but on the basis of consumers (referring to final consumers and industrial producers) The division is based on the theoretical basis of market segmentation, that is, the diversity and difference of consumer needs, motivations, and purchasing behaviors. Market segmentation plays an extremely important role in the production and marketing of enterprises.

1. It helps companies determine their target markets.

2. It is helpful for enterprises to discover market opportunities.

3. It allows enterprises to concentrate resources such as human, financial, material and information on the target market, forming a scale effect in operations. , which is of greater significance to small and medium-sized enterprises and non-state-owned enterprises.

4. Conducive to formulating and adjusting marketing mix strategies.

Question 2: What does market segmentation mean? Market segmentation, also known as market segmentation, refers to marketers who, through market research, divide the overall market for a certain product into several consumer groups based on differences in consumer needs and desires, purchasing behaviors, and purchasing habits. classification process. Each consumer group is a market segment, and each market segment is a group of consumers with similar demand tendencies.

Question 3: What does market segmentation refer to? Market segmentation: It is the process by which companies divide the entire market into different consumer groups based on different consumer needs. Its objective basis is: the heterogeneity of consumer demand. The main basis for market segmentation is customer groups with consistent needs in heterogeneous markets. The essence is to seek homogeneity in heterogeneous markets.

The goal of market segmentation is not to decompose, but to aggregate, that is, to bring together consumers with the same needs in markets with different needs. Of course, market segmentation is not the purpose of an enterprise. It cannot be segmented for the sake of segmentation, and the market cannot be segmented as finely as possible.

1. Complete market segmentation

The so-called complete segmentation means that each consumer in the market forms an independent sub-market, and the company produces different products for each consumer according to the different needs. Theoretically, only small-scale markets with a very small number of consumers can be completely segmented. This approach is uneconomical for enterprises. Despite this, complete segmentation still has a large market in certain industries, such as aircraft manufacturing, and customized marketing that has become popular in recent years is the result of companies completely segmenting the market.

2. No market segmentation

No market segmentation means that the needs of every consumer in the market are exactly the same, or the company intentionally ignores the differences in the needs of consumers and does not Market segmentation.

As far as the consumer market is concerned, the segmentation variables can be summarized as geographical environmental factors, demographic factors, consumer psychology factors, consumer behavior factors, consumption benefit factors, etc. There are five basic forms of market segmentation: geographical segmentation, demographic segmentation, psychological segmentation, behavioral segmentation, and benefit segmentation.

Question 4: What are the benefits of market segmentation? Market segmentation is a very important concept in marketing. 12 must-read articles for mainstream business management education in the market such as MBA, EMBA and CEO They all paid varying degrees of attention to the concept of market segmentation.

Introduction

The concept of market segmentation was proposed by American marketing scientist Wendell R. Smith in 1956.

According to consumer desires and needs, the overall market that is difficult for enterprises to serve due to its large scale is divided into several sub-markets with the same characteristics. Consumer groups in the same market segment are called targets. Consumer groups, compared to the mass market, the consumer groups in these target sub-markets are niches.

It is a new development of corporate marketing ideas and marketing strategies under the new market form after the end of World War II, when many product markets in the United States were transformed from a seller's market to a buyer's market. It is also a new development of corporate marketing ideas and marketing strategies. The inevitable product of the modern consumer-centered marketing concept.

Meaning

The famous scholar Lan Xiaohua believes that there are two extreme ways of market segmentation: complete market segmentation and no market segmentation; between these two extremes, there are a series of transition subdivision mode.

1. Complete market segmentation

The so-called complete segmentation means that each consumer in the market forms an independent sub-market, and the company produces different products for each consumer according to the different needs. Theoretically, only some small-scale markets with a very small number of consumers can be completely segmented. This approach is uneconomical for enterprises. Despite this, complete segmentation still has a large market in certain industries, such as aircraft manufacturing, and customized marketing that has become popular in recent years is the result of companies completely segmenting the market.

2. No market segmentation

No market segmentation means that the needs of every consumer in the market are exactly the same, or the company intentionally ignores the differences in the needs of consumers and does not Market segmentation.

As far as the consumer market is concerned, the segmentation variables can be summarized as geographical environmental factors, demographic factors, consumer psychology factors, consumer behavior factors, consumption benefit factors, etc. There are five basic forms of market segmentation: geographical segmentation, demographic segmentation, psychological segmentation, behavioral segmentation, and benefit segmentation.

Basics

Difference in customer needs

Difference in customer needs means that the needs of different customers are different. In the market, consumers always hope to purchase products based on their unique needs. Based on the differences in consumer needs, we can divide the market into two categories: "homogeneous demand" and "heterogeneous demand".

Homogeneous demand means that because the difference in consumer demand is very small or even negligible, there is no need for market segmentation. Heterogeneous demand refers to the differences in consumers’ demand for product prices, quality and styles due to their different geographical locations, social environments, psychology and purchasing motives. This difference in demand is the basis of our market segmentation.

Similarity of customer needs

People under the same geographical conditions, social environment and cultural background form subculture groups with relatively similar outlook on life and values. Their demand characteristics and Spending habits are much the same. It is precisely because of the relative homogeneity of consumer demand in some aspects that absolutely different consumers in the market can be aggregated into different groups according to certain standards. Therefore, the absolute difference in consumer demand creates the necessity of market segmentation, while the relative homogeneity of consumer demand makes market segmentation possible.

Limited resources of enterprises

Due to limitations of their own strength, modern enterprises cannot provide the market with products and services that can meet all needs. In order to compete effectively, enterprises must conduct market segmentation, select the most profitable target market segments, concentrate enterprise resources, and formulate effective competitive strategies to obtain and increase competitive advantages.

1. Geographic segmentation: Market segmentation based on geographical characteristics, including the following factors: terrain, climate, transportation, urban and rural areas, administrative regions, etc.

2. Demographic segmentation: is to segment the market based on demographic characteristics, including the following factors: age, gender, family size, income, education, social class, religious belief or race, etc.

3. Psychographic segmentation: Segmenting customers based on variables such as personality or lifestyle.

4. Behavioral segmentation: Evaluate consumer behavior and then segment it

5. Sociocultural segmentation: Segment the market based on sociocultural characteristics, based on ethnicity and Segmentation is mainly based on religion

6. User behavior segmentation: segmenting the market based on personal characteristics, occupation, culture, family, and personality.

1. It is helpful for enterprises to explore and develop new market opportunities.

2......>>

Question 5: How to conduct market segmentation? Market segmentation is when an enterprise divides the entire market according to the different needs of consumers. The process of dividing a market into different groups of consumers. Its objective basis is the heterogeneity of consumer demand. The main basis for market segmentation is customer groups with consistent needs in heterogeneous markets. The essence is to seek homogeneity in heterogeneous markets. The goal of market segmentation is to aggregate consumers with the same needs in markets with different needs. The introduction of this concept has an important role in promoting the development of enterprises. , FiberHome headhunting related experts believe that there are two extreme ways of market segmentation: complete market segmentation and no market segmentation; between these two extremes, there are a series of transitional segmentation models. 1. Complete market segmentation The so-called complete segmentation means that each consumer in the market forms an independent sub-market, and companies produce different products for each consumer according to their different needs. Theoretically, only some small-scale markets with a very small number of consumers can be completely segmented. This approach is uneconomical for enterprises. Despite this, complete segmentation still has a large market in some industries, such as aircraft manufacturing, and customized marketing that has become popular in recent years is the result of companies completely segmenting the market.

2． No market segmentation No market segmentation means that every consumer in the market has exactly the same needs, or the company intentionally ignores the differences in consumer needs and does not segment the market. As far as the consumer market is concerned, the segmentation variables can be summarized as geographical environmental factors, demographic factors, consumer psychology factors, consumer behavior factors, consumption benefit factors, etc. There are five basic forms of market segmentation: geographical segmentation, demographic segmentation, psychological segmentation, behavioral segmentation, and benefit segmentation. [Edit this paragraph] Procedure

Question 6: What are the purposes of market segmentation? Market segmentation is to divide the market into buying groups with different needs, personalities or behaviors according to scientific methods based on various attributes of consumers. Its main purposes are: 1. To reduce the inherent differences between individuals in the same market segment. Minimizing often maximizes the differences between market segments. 2. In market decision-making, the purpose of market segmentation is to adopt unique product or marketing mix strategies for different buyer groups in order to obtain the best returns.

Question 7: What does market segmentation mean? Hello classmate, I am happy to answer your questions!

The word you mentioned is part of the vocabulary of the futures industry. Mastering the vocabulary of the futures industry can help you learn the futures industry like a fish in water. The translation and meaning of this word are as follows: Market study words , refers to dividing potential customers who have similar needs and may accept similar promotional methods into different groups.

I hope that the answers from Gaodun Online School can help you solve your problems. More futures industry issues are welcome to be submitted to Gaodun Enterprise.

Gordon wishes you a happy life!