Market Segmentation

Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations.

Market segmentation and market diversity are two concepts that co-exist. Without the diverse market that consists of a wide range of people with a background, country of origin, the interests, needs, and desires are different, just a little reason to conduct market segmentation. 

Prior to receipt of the marketing concept is widely a common way to do business with consumers is through mass marketing, namely the supply of products or the marketing mix of the same to everyone. Market segmentation followed as a more logical way to meet the needs of consumers.

DEFINITION of MARKET SEGMENTATION

market segmentation can be defined as the process of dividing the market into strips the typical consumer who has the need or the same properties and then select one or more segments will be used as the target of a different marketing mix.

Market segmentation is the first step in a three-stage marketing strategy. Three stages of the marketing strategy, namely:

• Dividing a market into homogeneous groups.
• Select one or more segments that serve the target. Marketers should take decisions on the basis of the marketing mix are product, special pricing, channels, and/or special promotions appeal to each segment are different.
• Determining product positioning (positioning products) so that perceived by the consumer in each segment is shot as a product that gives satisfaction better than various other competitive offerings.

Market segmentation is widely used by business, including:

• The marketers, because the strategy of market segmentation is advantageous to both parties in the market, the goods consumer goods marketers be passionate to do.
• The retailers, for example, The Gap was aiming for various segments of age, income, and lifestyle in a variety of different retail stores.
• Hotels, dividing their market and target the different hotel chain to a different market segment.
• The company's manufacturing industry, share their markets, as do nonprofit organizations and the media.
• Charitable agencies, such as the Red Cross focus its fund-raising efforts on the "big donors".
• Some Arts Center Drama, music, and dance, divides its customers on the basis of the search benefits and has managed to increase the attraction of visitors through special promotions.

How is the market segmentation operation?

• Study of market segmentation is planned to find out the needs and desires of various groups of specific, so that the specific goods and services can be developed and enhanced to satisfy the needs of each group.
• Study of segmentation is also used to guide redesign or reset position of certain products or the addition of new segments. Research of segmentation used by the marketers, a variety of TV and radio stations to newspapers and magazines to:
• Closing the gap's products,
• Identify the most suitable media to place an ad,
• Determine the characteristics of the viewers and listeners and announce the findings to attract the advertisers who are looking for listeners who are similar.

THE BASIC MARKET SEGMENTATION

In drawing up the strategy of segmentation, the first step to do is to choose the most appropriate basis to divide the market. Nine major categories of consumer characteristics, which became the basis for performing segmentation are:

1. Geographical Segmentation

geographic segmentation, On the market are divided according to the place. Theory in this strategy is that people who live in the same area have similar needs and desires, and that these needs and desires are different from the needs and desires of the people who live in other areas. For example, the sale of certain food products and/or the assortment of food is better in one area than in a variety of other areas. For example, most good sales of warm rice, chicken satay the most good sales in Madura, an Apple Sales best in Malang, etc. 

Geographic Segmentation is a useful strategy for many perpetrators of marketing. Find a variety of differences based on geographically relative easy for various products. In addition, geographic segments can be easily reached via the local media, including newspapers, TV, radio, and magazines.

2. Demographic Segmentation

Demographic Characteristics most often used as the basis for market segmentation, among others:

• Age,
• Gender (sex),
• Marital status,
• Income, education, and employment, etc.

Help find a market demographic target or targets. Demographic information is the most effective way in terms of cost and most easily retrieved to identify targets. Demographic data are more easily measured than various other segmentation variables. Various electroencephalographic revealed a tendency which gives the cue various business opportunities, such as the shift in age, gender, and income distribution.

3. Psychological Segmentation

The psychological Characteristics refer to the properties of the essential self or individual consumers. Consumer segmentation strategies are often based on a variety of specific psychological variables. For example, consumers can be divided according to motivation, personality, perceptions, knowledge, and attitudes.

4. Segmentation psycho graphic breakdown of

consumer research applied forms of so-called lifestyle analysis. Profile psycho graphic breakdown of one segment of consumers can be considered as the combined activities (activities), interests (interests), and opinion (opinions) (AIO) consumers that can be measured. In the most common form, studies a psycho graphic breakdown AIO using a series of statements (statements a psycho graphic breakdown list) designed to recognize the various relevant aspects concerning personality, buying motives, interests, attitudes, beliefs, and the values of consumers.

5. Sociology-cultural Segmentation

Various sociological variables (the Group) and anthropological (culture) that is sociology-cultural variables become the foundations for further market segmentation. For example, various consumer markets have successfully divided into various segments based on their stage in the life cycle of the family, social class, cultural values, the core membership of the sub-culture, and cross cultural membership.

6. Segmentation Usage Related

form of segmentation is very popular and effective in groups of consumers according to the characteristics of the products, services, or use of the brand, such as the level of usage, the level of awareness, and the level of loyalty towards the brand. The usage level of segmentation to differentiate between heavy users, medium users, light users, and is not a user of product, service, or brand.

7. Segmentation Usage Situations

Marketers are focusing on the situation of usage as the segmentation variables caused by chance or situation often determine what will be bought or consumption of the consumer.

8. Segmentation of the benefits

Changing lifestyles plays a major role in determining the benefits of products that are important to consumers, and provides an opportunity for marketers to introduce products and services recently. Benefits of segmentation can be used to set the position of a range of brands to the same products.

9. Joint Segmentation

Segmentation approach Three combined (hybrid segmentation approach) are:

• Profile Demographic Psycho graphic Breakdown-
• Profile of demographic and psycho graphic breakdown is a complementary approach that will give maximum results if used together.
• Segmentation Demographics
• This type of combined segmentation is based on the notion that people who live close to each other may have a financial, appetizing, choice, lifestyles, and consumption habits.
• VALS 2
• System VALS in more firmly focused on the attempt to explain the behavior of the consumer buying.

CRITERIA for AIMING to EFFECTIVELY MARKET SEGMENT

To be effective, then target specific market segments must be:

• Can be identified,
• Insufficient (from a size),
• Stable or growing,
• Accessible (accessible) from the media as well as the cost.

IMPLEMENT THE STRATEGY OF SEGMENTATION

• A different marketing strategy (Differential Marketing) is to determine which target some segments by using individual marketing mix.
• Centralized marketing strategy (of Concentrated Marketing) is to determine which target only a single segment with a unique marketing mix.
• Contrasting is an attempt to find out the more general needs and characteristics of the consumers that will be applied to members of two or more segments, and merge back segments into one segment.