Hiya! Another week has flown by, and as a new week commences, let me quickly shoot some ideas about market segmentation today.
I believe you could already be aware of market segmentation and some related principles. Nevertheless, not everybody is and so I thought I could write about this in my blog for today. Again, you might be practicing segmentation but you are not maximizing your gains from it, hence your need or yearning for some additional tips in this regard. Simply defined, a market segment is a division or sector of a market of the same or similar nature, kind and attributes, and responds differently to marketing mix variables. Marketing mix variables comprise the product, price, promotion and place (4P’s). Of course within each of these P there are extras, for example within promotion we can talk about advertisements, communications etc. Again, as my manner is, I warn you about the definitions. You can get millions of definitions of market segmentation, but the principles remain the same. So don’t yell at my definition. Ok?
There are various segmentation approaches, as we will see below, but primarily the idea or focus is to find the right prospects so that your products and services with specific features can offer them the best possible solutions. Market segmentation can give your enterprise very valuable competitive advantage. However, you need to get it right otherwise it will certainly be another waste of time and other resources in your enterprise. Good segmentation enables your enterprise to have a clear direction of which markets to target, add value and achieve increased profitability (ROI – Return on Investment) which eventually positively impacts shareholder value in the enterprise. Remember that segmentation does not need to focus only on value; the volume aspect or market share is also an important consideration. The importance of segmentation is the reason why I want to give nine guidelines to maximize your gains from market segmentation.
Now, can we proceed?
Ok. Let me leave it here and now. I think we have had a good and long communication. Have a terrific new week!
With every good wish,
The Wise Entrepreneur