Concept and principles of market segmentation. Basic principles of consumer market segmentation

Market segmentation

It is quite obvious that different consumers want to purchase different products. To meet these different needs, manufacturing and marketing organizations seek to identify consumer groups that are most likely to respond positively to product offerings and target their marketing activities primarily to these consumer groups.

Here it is appropriate to recall the well-known Pareto law (80:20 law), which in this application is based on statistical research and according to which 20% of consumers buy 80% of goods of a certain brand, representing a generalized group of target consumers, for certain reasons (which ones? - we need to find out ) focused on this product. The remaining 80% of consumers purchase 20% of the product of a given brand and do not have a clear preference - they rather make random purchases. Manufacturers strive to target their products and marketing efforts at the top 20% of consumers (“target shooting”) rather than the entire market (“target shooting”). This market strategy turns out to be more effective.

Market segmentation consists of dividing it into relatively clear groups of consumers (market segments), which may be focused on different products and, accordingly, require different marketing efforts.

A market segment is a group of consumers characterized by the same type of reaction to the products offered and to a set of marketing incentives.

The first step in conducting segmentation is to select segmentation criteria. In this case, a distinction should be made between the criteria for segmenting markets for consumer goods, industrial products, services, etc. Although when segmenting markets for different goods, the same criteria can be partially used, for example, consumption volume.

Thus, when segmenting the consumer goods market, criteria such as geographical, demographic, socio-economic, psychographic (psychological), behavioral, etc. are used.

Geographic segmentation- dividing the market into various geographical units: countries, regions, regions, cities, districts, etc. Using this criterion is often the starting point for segmentation. Geographic segments are usually easy to define and measure, and the information needed is often available from secondary sources. In its pure form, geographic segmentation is of limited use. It is most useful primarily in the service sector, where territorial affiliation plays an important role.

Demographic segmentation- dividing the market into groups depending on consumer characteristics such as age, gender, marital status, social class, family life cycle, religion, nationality, race. Demographic segments, like geographic segments, are usually easy to define and measure, and the necessary information is often available from secondary sources. This segmentation is usually carried out in conjunction with the use of other criteria, since the needs for one, say, age group can vary greatly among different groups of people. True, individual products have a clear focus on certain categories of people - for example, the cosmetics market is usually initially segmented into cosmetics for women, men and children.

Socio-economic segmentation involves dividing consumers by income level, occupation, and level of education. It is obvious that the listed segmentation criteria directly affect the needs of the individual and the possibilities of meeting them. Sometimes these criteria are referred to as demographic criteria.

Psychographic segmentation- division of the market into various groups depending on life style or personal characteristics consumers.

Life style characterizes what consumers spend their time on, how they relax, what houses and apartments they live in, what the interior of their homes is like, what their hobbies are, etc. For example, cigarette manufacturers segment smokers into heavy, regular, and especially concerned about your health.

Personal characteristics consumers are rather used as segmentation criteria when the product is similar to competitors' products and the individual needs of consumers are not identified when applying other segmentation criteria. For example, Ford car buyers were once described as “independent, impulsive, change-minded, and self-confident.” However, personality traits are difficult to accurately measure because their identification is usually done for therapeutic purposes rather than for market segmentation purposes.

Because psychographic criteria are more difficult to measure than other segmentation criteria, they are often used to better understand consumers segmented using other criteria.

Behavioral segmentation involves dividing the market into groups depending on consumer characteristics such as: level of knowledge, attitudes, nature of use of the product or reaction to it.

At the same time, attitude is understood as stable favorable or unfavorable assessments, feelings and inclinations to act in relation to certain objects and ideas; it greatly influences buyer behavior.

In accordance with this, segmentation is distinguished: based on the circumstances of use, based on benefits, based on user status, based on intensity of consumption, based on the degree of loyalty, based on the buyer’s stage of readiness to make a purchase.

Segmentation by application circumstances- dividing the market into groups in accordance with the circumstances and reasons for the idea of ​​making a purchase or using a product. For example, abroad, orange juice is usually consumed at breakfast. However, orange producers are trying to expand demand for them by stimulating the consumption of orange juice at other times of the day.

Segmentation based on benefits(advantages) - dividing the market into groups depending on the benefits, benefits, advantages that the consumer is looking for in a product. For example, smoking for one category of consumers is an essential need of life, for others it is only an element of a certain image.

Segmentation based on benefits can be done during marketing research using cluster analysis. In this case, depending on their value system, respondents are grouped into separate segments. Within each segment, the value systems of individual consumers are similar. For example, based on the “found advantage” criterion, buyers of washing powders are segmented into consumers for whom the main thing in the powder is either that it washes “whiter than white”, or that there is no smell when washing, or that the powder causes the least harm to the environment, etc. Figure 1 shows how manufacturers adapt their products to the benefits that consumers value.

Rice. 1. Advantages found in products and their consideration when developing product policies

User status characterizes the degree of regularity of use of a product by its consumers, who are divided into non-users, former users, potential users, novice users and regular users. For example, you can focus your marketing efforts on converting first-time users into regular users. Different enterprises focus their activities on different user groups, and the latter require different methods product promotion.

Consumption intensity- an indicator on the basis of which markets are segmented into groups of weak, moderate and active consumers of certain products. Obviously, it is more profitable to serve one market segment consisting of a significant number of active consumers than several small segments of weak consumers.

Degree of loyalty characterizes the degree of loyalty and commitment of a consumer to a particular brand of product and is usually measured by the number of repeat purchases of a product of this brand. Based on this criterion, the following six segments can be distinguished: 1) consumers demonstrating high loyalty to a particular brand of product; 2) consumers who may switch to another brand and reduce their use of that brand; 3) casual consumers, the number of which can be increased using special methods of product promotion; 4) casual consumers who can reduce their consumption due to the actions of competitors; 5) non-consumers of this brand, who can buy it subject to its modification; 6) non-consumers with a strong negative attitude towards the brand.

Buyer readiness stage- a characteristic according to which buyers are classified into those who are not informed and knowledgeable about the product, those who are well informed about the properties of the product, those who have shown interest in it, those who want to buy it, and those who are unwilling to buy it. The marketing plan is developed taking into account the distribution of buyers into different stages of their readiness to make purchases.

When segmenting the market for industrial and technical products, macro-segments are usually first identified, within which micro-segments are then sought. Macro segments are characterized by some common properties, micro segmentation involves further detailing macro segments based on special purchasing characteristics.

When conducting macrosegmentation, the following criteria are primarily used: geographical location; type of organization purchasing the goods; organization size; directions and volume of use of purchased goods.

Demand for industrial and technical products varies depending on geographical location consumer organizations. For example, wood processing companies target certain types of their products to specific geographic areas. Enterprises of certain sectors of the national economy are often located in certain regions, depending on the availability of certain resources, transport communications, etc. These businesses have similar needs.

Different types of organizations often require products with certain characteristics and prices, specific distribution systems and marketing strategies. For example, a paint manufacturer may segment the market into wholesale trade organizations, retail organizations, construction organizations, car manufacturers, etc.

Organization size may influence procurement procedures and their volume. To develop a segment of a certain size, a marketer must adapt the elements of the marketing mix to specific conditions. For example, trade discounts are often provided to consumers who purchase in large quantities. Personal selling is more often used to sell goods to large organizations.

Various products, such as raw materials (steel, oil, timber, etc.), used in a wide variety of applications. This affects the types and quantities of products purchased and the use of marketing tools. For example, computer manufacturers may segment the computer market by use because the hardware and software requirements of different organizations are determined by the purposes for which the computers are used. Organizations purchasing products in large quantities have different needs compared to organizations purchasing products in small quantities. This applies primarily to pricing and supply policies. The manufacturer can set a “threshold” for the size of purchases, above which the buyer moves to another “weight category” with a special status.

To identify micro-segments, it is necessary to have a detailed understanding of the individual properties of the members of each macro-segment in terms of their management philosophy, purchasing decisions and strategies for their implementation. This segmentation is based on information from both official and unofficial sources.

In addition, it is possible that other criteria may be used for segmentation. Thus, in Russia it is very common to segment consumers depending on their ability to pay.

Choosing the right segmentation criterion significantly affects the final results of business activities. For example, when developing a market strategy and sales tactics for the Mustang car model, Ford Motors (USA) chose the age of customers as the basic segmentation criterion. The model was intended for young people who wanted to buy an inexpensive sports car. However, having launched the car on the market, the company's management discovered to their surprise that the model was in demand among buyers of all ages. The conclusion was that the base segment group should have been chosen not by young people, but by “psychologically young” people. This example speaks to the need to take psychological factors into account when segmenting.

For each market segment identified using a certain criterion/criteria, it is necessary to determine the consumer reaction profile, that is, a set of characteristics (descriptors) that describe in detail the consumers of a particular market segment. Representatives of one market segment must have the same attitude towards the product in terms of the advantages found in it, apply it in a similar way, react similarly to marketing tools (price, advertising, etc.), demonstrate similar behavior and loyalty to the product. Only in this case, from these positions, consumer segmentation should be considered successful.

Identification of the consumer reaction profile is usually carried out through special research. For example, coffee lovers were surveyed to rank 25 characteristics of this product(coffee with and without caffeine; ground and beans; regular and instant, etc.). The obtained data were subjected to factor analysis, as a result of which three clear segments of consumers were identified, conventionally named as “caffeinated coffee lovers”, “decaffeinated coffee lovers” and “ground coffee lovers”. Each of these segments was characterized in terms of its size, purpose and frequency of coffee use, brand and type of coffee consumed, and consumer demographics. In accordance with the results obtained, it was determined to which consumer segments certain brands of coffee should be supplied.

The segments resulting from successful segmentation should be:

1. Defined, that is, have a clear set of needs and respond in a similar way to the product offered.
2. Significant enough in size to justify the additional costs of “tailoring” marketing strategies to the requirements of this segment.
3. Available for effective marketing activities.
4. Quantitatively measurable.
5. Used for a fairly long period of time.

If the selected segments do not satisfy the requirements of uniformity of consumer response or other requirements for market segments, then the segmentation process should be continued using other criteria. Thus, the segmentation process is iterative. It is sometimes said that segmentation is more of an art than a science.

It must be kept in mind that market segments change over time, creating new opportunities and eliminating previously existing ones. Thus, the personal computer market grew by 55% annually during the 1980s, while cigarette sales in Northern Europe decreased by 3% annually. New knowledge and technologies offer new opportunities, and therefore the search for new segments should be important direction in the activities of marketers.

TABLE No. 10. SOME VARIABLES USED TO SEGMENT CONSUMER MARKETS
VARIABLE QUANTITY	TYPICAL BREAKDOWN
Geographical principle
Region	Pacific States, Mountain States, Northwest Central, Southwest Central, Northeast Central, Southeast Central, South Atlantic States, Mid-Atlantic States, New England
Counties (by size)	A B C D
City or standard metropolitan area (by size)	With a population of less than 5 thousand people, 5–20 thousand people, 20–50 thousand people, 50–100 thousand people, 100–250 thousand people, 250–500 thousand people, 0.5–1.0 million people, 1–4 million people, over 4 million people
Population density	Cities, suburbs, countryside
Climate	North, South
Psychographic principle
Social class	Inferior inferior, superior inferior, inferior intermediate, superior intermediate, inferior superior, superior superior
Lifestyle	Traditionalists, lovers of life, aesthetes
Personality type	An enthusiastic nature, a lover of doing “like everyone else”, an authoritarian nature, an ambitious nature
Behavioral principle
Reason for making a purchase	Everyday purchase, special occasion
Benefits sought	Quality, service, savings
User status	Non-user, former user, potential user, new user, regular user
Consumption intensity	Weak consumer, moderate consumer, active consumer
Degree of commitment	None, medium, strong, absolute
The degree of buyer readiness to perceive the product	Uninformed, aware, informed, interested, willing, intending to buy
Attitude to the product	Enthusiastic, positive, indifferent, negative, hostile
Demographic principle
Age	Under 6 years old, 6–11 years old, 12–19 years old, 20–34 years old, 35–49 years old, 50–64 years old, over 65 years old
Floor	Men, women
Family size	1–2 people, 3–4 people, 5 people or more
Family life cycle stage	Young singles, young family without children, young family with youngest child under 6 years of age, young family with a youngest child aged 6 years or older, elderly spouses with children, elderly spouses without children under 18 years of age, single, others
Income level	Less than 2.5 thousand dollars, 2.5–5.0 thousand dollars, 5.0–7.5 thousand dollars, 7.5–10 thousand dollars, 10–15 thousand dollars, 15–20 thousand dollars, 20–30 thousand dollars, 30–50 thousand dollars, 50 thousand dollars and above
Occupation	Knowledge workers and technical specialists; managers, officers and owners; clerks, salespeople; artisans, middle managers; skilled workers; farmers; pensioners; students; housewives; unemployed
Education	Primary or less, junior high school, high school graduate, junior high, college
Religious Beliefs	Catholic, Protestant, Jew, others
Race	White, Black, Oriental
Nationality	Americans, British, French, Germans, Scandinavians, Italians, Latin Americans, Middle Easterners, Japanese

TABLE No. 11. SEGMENTATION OF BEER CONSUMERS BY PERSONALITY TYPE
TYPE OF CONSUMER	PERSONALITY TYPE	CONSUMER HABITS
Drinking in company	We are driven by our own needs and especially the need to achieve success and the desire to manipulate others to get something we want. We are driven by the desire to get ahead. Usually a young man.	A person who knows how to control himself, who can sometimes still get very drunk and get drunk, but most likely not an alcoholic. He drinks mainly on weekends, holidays and during vacations, usually in the company of friends. He considers drinking beer one of the ways to achieve social recognition.
Drinking to restore tone	Sensitive and responsive to the needs of others. Adapts to the needs of others, sacrificing his own aspirations for this. Usually a middle-aged man.	A person who knows how to control himself, who rarely gets very drunk or gets drunk. Drinks mostly after work, usually with a few close friends. He considers drinking beer a kind of reward for sacrifices made for others.
Heavy drinker	Sensitive to the needs of others. Often a loser who blames himself.	Drinks a lot, especially at times of heightened desire to succeed. At times he loses control of himself and can become very drunk or drunk. He might even become an alcoholic. For him, drinking beer is a form of escapism.
Drinking out of control	As a rule, he does not feel empathy for others, blaming his failures on the lack of compassion for himself on the part of others.	Like the representative of the previous category, he drinks a lot, often gets very tipsy, gets drunk, and often becomes an alcoholic. For him, drinking beer is a form of escapism.

TABLE No. 12. SEGMENTATION OF THE TOOTHPASTE MARKET BASED ON EXPECTED BENEFITS
SEGMENTS BY TYPE OF BENEFITS	DEMOGRAPHIC CHARACTERISTICS	BEHAVIORAL CHARACTERISTICS	PSYCHOGRAPHIC CHARACTERISTICS	PREFERRED TOOTHPASTE BRANDS
Savings (low price)	Men	Active consumers	High degree of independence, value orientation	Commercially available brand
Therapeutic effect (prevention of rotting)	People with large families	Active consumers	Hypochondriacs, conservatives	"Cross"
Cosmetic effect (shiny teeth)	Teenagers, young adults	Smokers	Extremely sociable and active	"McLeans", "Ultra-Bright"
Taste (good taste)	Children	Mint lovers chewing gum	Increased desire to participate in everything yourself, lovers of life	"Colgate", "Ame"

User status:

SEGMENTATION BY GEOGRAPHICAL PRINCIPLE

Geographic segmentation involves dividing the market into different geographical units: states, states, regions, counties, cities, communities. A firm may decide to operate: 1) in one or more geographic regions, or 2) in all regions, but taking into account the differences in needs and preferences determined by geography. For example, General Foods Corporation's Maxwell House ground coffee is sold nationwide and flavored depending on the region. In the West, they prefer stronger coffee than in the eastern regions of the country.

Some firms further break down large cities into smaller geographic areas. Thus, the company "R. J. Reynolds divides Chicago into three separate submarkets 2 . In the North Coast areas, the company offers low-tar cigarette brands because residents in these areas are more educated, knowledgeable and health-conscious. In a conservative blue-collar southeastern area, the company advertises Winston cigarettes. And in the southern part of the city “R. J. Reynolds promotes high-menthol Salem cigarettes with heavy advertising in the black press and on billboards.

Related information.

Market Segmentation Strategies

Market Segment Assessment

Principles of market segmentation

It is quite understandable and natural that every manufacturer wants to create and sell products that can satisfy the maximum number of consumers. But in real life this is hardly possible, since consumers have different attitudes towards the same product, use it differently, and most importantly, purchase it for different reasons.

Therefore, it seems appropriate to divide the market into separate segments in accordance with the motivation of consumers and their specific characteristics. The process of market segmentation is the division of buyers or a market into populations of people with similar needs for a particular product or service, sufficient resources, and the willingness and ability to buy.

Segmentation gives a company the opportunity, instead of a ruinous struggle with competitors, to more effectively serve a particular market segment.

Currently, there is no single method of market segmentation. Therefore, firms and their marketing services

should consider and test segmentation options based on different parameters or principles. These include the basic geographical, demographic, psychographic and behavioral principles most often used in segmenting consumer markets.

Geographical principle. It involves dividing the market into different geographical units: states, regions, regions, cities, districts. Typically, any company begins its business by choosing a geographical location. It must decide where to act - in one or more areas of the city, throughout the city, in one or more regions, on a national or international scale. In this case, the company must clearly understand the climate in the selected locations, population density, and preferences inherent in urban and rural populations.

Demographic principle. This principle consists of dividing the market into groups according to parameters such as gender, age, family size, stage of the family life cycle, income level, occupation, education, religious beliefs, nationality. Such parameters are most often used in segmentation because they are related to the needs and preferences of consumers, and in addition, they are the easiest to measure compared to other parameters.

Psychographic principle. Customer segmentations are divided into groups based on social class, lifestyle, and personality characteristics. This is because members of the same demographic group can exhibit completely different psychographic traits. Thus, belonging to one or another social class greatly affects a person’s preferences in relation to various goods, services, choice of retail outlets, etc. Therefore, many firms plan their activities by producing goods and services based on representatives of a particular social class.

Behavioral principle. Many experts believe that the use of behavioral parameters is the most appropriate basis for forming market segments. These parameters include the reason for making a purchase, the benefits sought, the status of the user, the intensity of consumption, the degree of commitment and readiness to perceive the product and attitude towards the product.

Segmentation is important means increasing profitability... Segment strategy is “sniper” shooting at the market. J. F. Angel, American marketing scientist. It is quite understandable and natural that every manufacturer wants to create and sell products that can satisfy the maximum number of consumers. But in real life this is hardly possible, since consumers have different attitudes towards the same product, use it differently, and most importantly, purchase it for different reasons.

Therefore, it seems appropriate to divide the market into separate segments in accordance with the motivation of consumers and their specific characteristics. The process of market segmentation is the division of buyers or a market into populations of people with similar needs for a particular product or service, sufficient resources, and the willingness and ability to buy.

Segmentation gives a company the opportunity, instead of a ruinous struggle with competitors, to more effectively serve a particular market segment.

Currently, there is no single method of market segmentation. Therefore, firms and their marketing teams should consider and test segmentation options based on different parameters or principles. These include the basic geographical, demographic, psychographic and behavioral principles most often used in segmenting consumer markets.

Geographical principle. It involves dividing the market into different geographical units: states, regions, regions, cities, districts. Typically, any company begins its business by choosing a geographical location. It must decide where to act - in one or more areas of the city, throughout the city, in one or more regions, on a national or international scale. In this case, the company must clearly understand the climate in the selected locations, population density, and preferences inherent in urban and rural populations.

Demographic principle. This principle consists of dividing the market into groups according to parameters such as gender, age, family size, stage of the family life cycle, income level, occupation, education, religious beliefs, nationality. Such parameters are most often used in segmentation because they are related to the needs and preferences of consumers, and in addition, they are the easiest to measure compared to other parameters.

Here are some examples of using demographic parameters for market segmentation. Age and stage of the family life cycle play a large role in segmenting the consumer market for children's products, especially toys. This segmentation principle allows you to choose the most suitable toy based on knowledge of the child’s age.

Knowledge of the stages of the family life cycle allows firms to rationally form product sales structures (for example, different sizes of food packaging) and most fully satisfy the needs of the corresponding categories of families.

Gender segmentation is widely used by companies producing textiles, clothing, shoes, jewelry, cosmetics, furniture, household appliances and some attributes that emphasize business style and character traits men and women in the course of their professional activities.

One of the most important segmentation parameters is income level, which divides consumers into low, medium and high income groups. Each of these groups is characterized by certain levels of consumption of food, household appliances, means of transportation, forms of recreation, etc.

Example: Based on indicators of the level of consumption of goods and services in Russia at the end of the 20th century. the entire population of the country can be imagined

in the form of four social strata: poor, low-income, wealthy and rich. The division was carried out according to the principle of the number of subsistence minimum sets purchased for average per capita income. The subsistence level includes a list of necessary food products and seven types of services ( public utilities, transport, etc.).

Thus, in 1999, the poor (54% of the country’s total population) could purchase less than one set of the subsistence level with their income; low-income (26.6%) - 2 - 2.5 sets; average (14.4%) - 3 - 5 sets, and wealthy (4.3%) - 6 - 7 sets of the subsistence level. The income gap between the richest and the poorest reaches 40 times, which has a significant impact on the socio-economic and political situation in the country. Knowledge of these indicators and the nature of their changes should be taken into account when developing marketing activities, manufacturing enterprises and commercial firms.

Psychographic principle. Customer segmentations are divided into groups based on social class, lifestyle, and personality characteristics. This is because members of the same demographic group can exhibit completely different psychographic traits. Thus, belonging to a particular social class greatly affects a person’s preferences in relation to various goods, services, choice of retail outlets, etc. Therefore, many firms plan their activities by producing goods and services based on representatives of a particular social class.

Most firms segment markets using a combination of several demographic parameters, such as gender, age, and income level. Lifestyle is the established forms of a person’s existence in the world, which are expressed in his activities, interests and beliefs. This concept is very important when choosing market segmentation parameters.

Even the belonging of people to the same social class or type of professional activity does not allow us to fully imagine them as individuals. And only a way of life provides a comprehensive portrait of a person in his actions and relationship with the environment.

And it is no coincidence that when developing a product marketing strategy, experts strive to reveal the relationship between ordinary and branded goods and the lifestyle of potential consumers. For example, this is how manufacturers of jeans act for specific groups of men leading an active lifestyle, or, conversely, homebodies. For each group, jeans of a special cut are created, at different prices and advertised through different advertising means, etc.

Personality type is a set of distinctive psychological characteristics of a person that ensure the relative consistency and constancy of his responses to the environment. Typically, personality type is described on the basis of the individual’s inherent traits, such as self-confidence, independence, sociability, ambition, aggressiveness, wariness, etc.

Knowledge of personality type allows you to analyze consumer behavior and establish a certain relationship between personality type and attitude towards a particular product. This is crucial when the market is oversaturated with goods and manufacturers are forced to adapt to the lifestyle and personal characteristics of their customers.

For example, the Volkswagen company divides motorists into two categories: “good citizens”, focused on economy, safety and the environment, and “capricious citizens”, focused on speed, maneuverability and sportiness. At the end of the 1950s. Ford and Chevrolet cars were advertised as cars for people of different personality types; it was believed that Ford buyers were independent, impulsive, courageous, self-confident, sensitive to change, while Chevrolet buyers were conservative people, economical, prestige-conscious, cautious, trying to avoid extremes.

However, subsequent studies have shown that this approach to segmentation does not always give a positive result. Rather, in favor of segmenting the market by personality type, one can cite the segmentation of buyers of cars with convertible tops and hardtops. Using segmentation by personality type, you can divide consumers into introverts and extroverts. Introverted consumers are more conservative in their shopping behavior than extroverted ones. They are difficult to persuade and have a negative attitude toward intense personal selling and advertising. Extroverts are more easily persuaded to buy through intensive marketing and advertising methods.

Behavioral principle. Many experts believe that the use of behavioral parameters is the most appropriate basis for forming market segments. These parameters include the reason for making a purchase, the benefits sought, the status of the user, the intensity of consumption, the degree of commitment and readiness to perceive the product and attitude towards the product.

The reason for purchasing can help firms better understand the level of use of a product or service. Thus, the reason for purchasing air tickets may be a business trip, a vacation trip, or special circumstances. Therefore, an airline can specialize in serving people who use any of these occasions.

One of the fairly effective segmentation methods is the benefits that buyers are looking for in a product. There is a fairly large group of products in which buyers find various benefits for themselves. These include watches, hygiene products, household appliances, etc. For example, American researcher R. Haley, studying the toothpaste market, identified four segments according to types of benefits: savings, therapeutic effects, cosmetic effects and taste.

In terms of user status, many markets can be divided into the following segments:

• users who do not use the product;
• former users;
• potential users;
• novice users;
• regular users.

As a rule, large firms aimed at gaining a large market share are interested in attracting potential users to their products, while small firms seek to attract regular users to their brand. At the same time, different marketing approaches should be used for each segment.

Product consumers themselves can be divided according to the intensity of their consumption into weak, moderate and active. This segmentation principle is convenient to use in relation to consumers of various drinks, personal care products, a number of consumer goods, televisions, medical devices, etc. Active consumers usually make up a small share of the market, but provide the largest percentage of the total volume of consumed products.

They also share common demographic and psychographic characteristics and degree of adherence to advertising media. The degree of consumer commitment to a product is another segmentation criterion. Consumers may be loyal to brands, places of sale, seasonal sales, etc. They can be divided into four groups: unconditional adherents, tolerant adherents, inconsistent adherents and indifferent adherents.

Divine followers always buy the same brand. These may be consumers of clothing of a certain household, lovers of certain types of soft drinks and tobacco products, fans of sports clubs, etc.

Tolerant followers may give preference to more than one, noise or more brands of a product, i.e. they do not have serious prejudices against various brands, nor do they have great loyalty to them.

Fickle adopters change their preferences over time and move from consuming one branded product to another. This may be due to changes in both tastes and financial situation.

Indifferent devotees generally show no commitment to any branded product. They, as a rule, purchase any brand of product that is available at the moment.

It is important for firms to analyze the level of commitment in their markets and study the characteristics of both unconditional adherents of their branded products and those who abandon them. This allows companies to more effectively build their marketing strategy. At the same time, it should be remembered that the concept of “brand loyalty” is not always understood unambiguously, and conclusions based on segmentation on this basis should be treated with caution.

The degree of buyer readiness to perceive a product is an important factor that requires special research. IN total mass Potential buyers can be identified from completely ignorant people to knowledgeable and even fairly informed people. Naturally, one cannot expect interest, much less a desire to purchase goods, from the uninformed. Therefore, firms, when developing their marketing strategies, must pay special attention to methods of spreading greater awareness about the products they produce.

The attitude towards a product on the part of potential consumers can be enthusiastic, positive, indifferent, negative and even hostile. The ability to identify segments with one or another relationship to a company’s product allows you to more rationally build your marketing strategy. So, if a market segment with a negative or hostile attitude towards a product is identified, then you should not waste your time and effort on this segment; It is better to focus your efforts on the segment with an indifferent attitude towards the product.

Firms operating in the market are aware that their products or services cannot fully satisfy the needs and desires of all consumers. Ideally, the company will try to occupy all market niches (segments) to maximize profits. In fact, it conducts marketing research and, as a result, focuses its “attention” on certain market segments where its product will bring maximum income - after all, it is quite obvious that different consumers want to purchase different products. In theory, the market segmentation strategy looks like this (Fig. 1)

Picture 1

The article will consider the first point of this scheme - “Market Segmentation”, as well as the methods and principles of market segmentation that have become widespread here and in the West.

Market segmentation

1. Classification of markets

Before considering the issue of market segmentation, it is advisable to classify them. In marketing, the market refers to the totality of all potential consumers who have a need for goods in a particular industry and have the opportunity to satisfy it. Depending on the type of consumers, the following types of markets are distinguished: consumer market and organizational markets. The latter are divided into markets for industrial and technical products, resale markets and markets government agencies. With such an abundance of markets, it is obvious that when segmenting a market, it is necessary to take into account certain of its features and take into account the uniqueness of products sold in different markets.

2. Definition of market segmentation

As introductory word It is appropriate to recall the Pareto law (“80:20 law”), according to which only 20% of customers bring the company 80% of the income, representing a generalized group of the company’s target customers. The company focuses its products on them (“shooting at targets”). This market strategy seems to be more effective. In essence, this is market segmentation.

Market segmentation involves dividing markets into distinct groups of buyers (market segments) who may require different products and be targeted by different marketing efforts.

A segment is a group of consumers characterized by a similar reaction to the product offered and to a set of marketing incentives.

The main arguments in favor of segmentation are the following:

1. Provides a better understanding of not only the needs of consumers, but also what they are like (their personal characteristics, behavior in the market, etc.)

2. Provides a better understanding of the nature of competition in specific markets. Based on knowledge of these circumstances, it is easier to select market segments for their development and determine what characteristics products should have to gain competitive advantages.

3. It becomes possible to concentrate limited resources on the most profitable areas of their use.

4. When developing plans for marketing activities, the characteristics of individual market segments are taken into account, resulting in a high degree of orientation of marketing activity tools to the requirements of specific market segments.

3. Segmentation criteria

The first step in conducting segmentation is to select segmentation criteria. At the same time, it is necessary to distinguish between the criteria for segmenting markets for consumer goods, industrial products, services, etc. Thus, when segmenting the market for consumer goods, criteria such as geographical, demographic, socio-economic, psychographic, behavioral, etc. are used.

Geographical segmentation- dividing the market into various geographical units: countries, regions, regions, cities, etc.

Demographic segmentation is the division of the market into groups depending on consumer characteristics such as age, gender, marital status, family life cycle, religion, nationality and race.

Socio-economic segmentation involves dividing consumers by income level, occupation, level of education.

Psychographic segmentation- dividing the market into different groups depending on the social class, lifestyle or personal characteristics of consumers.

Behavioral segmentation involves dividing the market into groups depending on consumer characteristics such as: level of knowledge, attitudes, nature of use of the product or reaction to it.

In accordance with the relationship, segmentation is distinguished: based on the circumstances of use, based on benefits, based on user status, based on intensity of consumption, based on the degree of loyalty, based on the buyer’s stage of readiness to make a purchase.

Segmentation by circumstances of application - dividing the market into groups in accordance with the circumstances, reasons for the idea, making a purchase or using a product.

Segmentation based on benefits is dividing the market into groups depending on the benefits that the consumer is looking for in a product.

User status characterizes the degree of regularity of use of a product by its users, who are divided into non-users, former users, potential users, new users and regular users.

Consumption intensity - an indicator on the basis of which markets are segmented into groups of weak, moderate and active consumers of certain products. Obviously, it is more profitable to serve one market segment consisting of a significant number of active consumers than several small segments of weak consumers.

The degree of loyalty characterizes the degree of consumer loyalty and commitment to a particular brand of product, usually measured by the number of repeat purchases of a product of this brand.

The stage of buyer readiness is a characteristic according to which buyers are classified into those who are unaware and aware of the product, those who are interested in it, those who want to buy it, and those who intend to buy it.

When segmenting the market for industrial and technical products, the following criteria are primarily used: geographic location; type of organization purchasing the goods: size of purchases; directions for using purchased goods.

Segmentation can also be carried out by sequentially applying several criteria. It is important that the segments are not too small, i.e. unprofitable for commercial development. As an example, in Fig. Figure 2 shows a fragment of the results of a consistent three-stage segmentation of the aluminum consumer market.

Figure 2

4. Requirements for segmentation efficiency

Without a doubt, there are many ways to segment a market - but not all of them are effective. For example, table salt consumers can be divided into brunettes and blondes. But hair color has no effect on the amount of salt demanded. Therefore, if consumers purchase salt every month, at the same price and presumably of the same quality, segmenting this market will not bring tangible benefits.

To be useful, market segments must satisfy the following characteristics:

Measurability is the degree to which the size and purchasing power of a market can be measured. For example, it is almost impossible to determine the number of left-handers - this is not indicated in any statistical collections. Typically, company information databases do not contain such indicators either.

Availability is the degree to which the market can be reached and supplied with the required quantity of products.

The reality is the degree of profitability and size of the segment. The company should focus its marketing strategy on the largest homogeneous group of consumers - for example, a manufacturer will never make a car for people whose height is below 1.20 m - only to order.

Effectiveness is the degree to which an effective marketing program can be used to attract consumers. For example, a small aircraft may satisfy 7 market segments, but the CEO lacks the ability and ability to succeed in all market sectors.

Segmentation Methods

Some "basic" segmentation methods can be identified. The most important of them is consumer cluster analysis (taxonomy). Consumer clusters are formed by grouping together those who give similar answers to questions asked. Buyers can be grouped into a cluster if they have similar age, income, habits, etc. Similarity between buyers is based on different measures, but often the weighted square of the differences between buyers' responses to a question is used as a measure of similarity. The output of clustering algorithms can be hierarchical trees or grouping of consumers into groups. There is enough a large number of cluster algorithms.

For example, in the USA, cluster analysis of systems called PRIZM is widespread , which begins clustering by reducing a set of 1000 possible socio-demographic indicators. This system forms socio-demographic segments for the entire US territory. Thus, cluster 28 has been identified - families that fall into this cluster include individuals with the most successful professional or managerial careers. This cluster also reflects high income, education, property, approx. average age. Although this cluster represents only 7% of the US population, it is critical for entrepreneurs selling high-value goods. There are other examples of consumer segmentation based on cluster analysis. For example, among the “psychological” sectors, a very important place is occupied by “the consumer’s attitude to the novelty of the product” (Fig. 3)

Figure 3

As can be seen from the above data, the largest number of consumers are ordinary buyers. Consumer segmentation based on cluster analysis is a “classical” method. At the same time, there are methods of market segmentation based on the so-called “product segmentation” or market segmentation according to product parameters. It is especially important when releasing and marketing new products. Special meaning segmentation by product is acquired, based on the study of long-term trends in the market. The process of developing and producing a new product and completing large investment programs require a fairly long period, and the correctness of the results of market analysis and assessment of its capacity is especially important here. In conditions of working on the traditional market of standard products, calculation of its capacity can be carried out by using the market summation method. IN modern conditions To increase its competitiveness and correctly determine the market capacity, it is no longer enough for an enterprise to segment the market in only one direction - identifying consumer groups based on certain characteristics. As part of integrated marketing, it is also necessary to segment the product itself according to the most important parameters for its promotion on the market. For this purpose, the method of compiling functional maps- conducting a kind of double segmentation, by product and consumer. Functional maps can be single-factor (segmentation is carried out according to one factor and for a homogeneous group of products) and multi-factor (analysis of which consumer groups a specific product model is intended for and which of its parameters are most important for promoting products on the market) Using compilation functional maps can determine which market segment a given product is designed for, which of its functional parameters correspond to certain consumer needs.When developing new products, this technique assumes that all factors reflecting the system of consumer preferences, and at the same time the technical parameters of the new product, must be taken into account with the help of which it is possible to satisfy consumer needs; groups of consumers are determined, each with its own set of requests and preferences; all selected factors are ranked in order of importance for each of the consumer groups.

This approach allows you to see already at the development stage which parameters of the product require design improvements, or to determine whether there is a sufficiently capacious market for this model.

Let us give an example of such a market analysis in relation to the Apple computer project being developed (Table 1)

Table 1. "Segmentation of the personal computer market and factors taken into account when developing products for it (1982)"

	Market segments by consumer groups
				To the house. office	In small business	In a corporation
Technical specifications
Special qualities
Reliability
Convenient to use
Compatibility
Peripheral equipment
Software

*** is a very important factor

** - important factor

* - unimportant factor

0 - insignificant factor

This simple analysis shows that Model A is a computer without a market, and Model B is the most suitable product for universities and small businesses.

The company once bet on computer A and lost.

In general, in world practice, 2 fundamental approaches to marketing segmentation are used.

Within the first method. called “a priory”, the characteristics of segmentation, the number of segments, their number, characteristics, and a map of interests are previously known. That is, it is assumed that segment groups in this method have already been formed. The “a priory” method is used in cases where segmentation is not part of the current research, but serves as an auxiliary basis for solving other marketing problems. Sometimes this method is used when market segments are very clearly defined, when the variability of market segments is not high. “A priory” is also acceptable when forming a new product aimed at a well-known market segment.

Within the second method, called “post hoc (cluster based), the uncertainty of the characteristics of segmentation and the essence of the segments themselves is implied. The researcher first selects a number of variables that are interactive in relation to the respondent (the method involves conducting a survey) and then, depending on the expressed attitude towards a certain group of variables, respondents belong to the corresponding segment. In this case, the map of interests identified in the process of subsequent analysis is considered as secondary. This method is used when segmenting consumer markets, the segment structure of which is not defined in relation to the product being sold.

Segmentation using the "a priory" method

When choosing the number of segments into which the market should be divided, they are usually guided by the target function - identifying the most promising segment. Obviously, when forming a sample, it is unnecessary to include segments whose purchasing potential is quite small in relation to the product under study. The number of segments, as studies show, should not exceed 10; excess is usually associated with excessive detail of segmentation features and leads to unnecessary “blurring” of features.

For example, when segmenting by income level, it is recommended to divide all potential buyers into segments of equal volume, taking into account that the volume of each segment is at least not less than the estimated volume of sales of services, based on knowledge of the production capacity of the enterprise. The most successful example that explains the above and demonstrates the possibility of dividing potential consumers into stable segment groups can be segmentation of the population based on income, when the entire population is divided into five 20% groups. The presented distribution of income by five 20% population groups is regularly presented in statistical collections and reports, similar to that presented in table. 2

Table 2." Distribution of income by population groups. %"

The convenience of working with such segment groups is obvious, especially in terms of tracking their capacity. Segmentation of consumers of industrial markets using the “a priory” method is carried out in accordance with two possible situations regarding the type of consumers:

a) all possible consumers of the market are “known” and their list can be compiled (the number of consumers does not exceed 50 firms)

b) there are quite a large number of consumers, their composition often changes and it is impossible to compile a specific list of them.

In case a), if there are large consumers, their list description is made, that is, a complete list of all consumers is considered. This method in relation to consumers of the industrial market is called a “complete census of the upper stratum of consumers.” The use of this method makes it possible to determine the capacity consumer market, which is considered as the sum of the needs of enterprises from the generated census.

In the second approach to describing consumers of the industrial market, when the number of consumer enterprises making up the segment is quite high and there is no possibility of forming a “complete census,” segmentation is used according to conditional characteristics related to the activities of the industrial enterprise or its characteristics. Such signs may be the components of the financial indicators of an industrial enterprise (the amount of turnover, profitability of activities, the value of fixed assets, etc.). features of the structure or scheme for making a purchase decision, personnel

becoming and similar indicators. The choice of enterprise indicators and segmentation features in this case is determined by the nature of the services or products that are supposed to be provided or supplied to these enterprises. An example of segmentation of industrial enterprises by trade turnover and areas of activity is presented in Table. 3

Table 3. "Segmentation of enterprises by trade turnover and areas of activity"

	Segment characteristics
Small firms	Family businesses with limited financial resources. Lack of administrative apparatus, minimum planning. The scope of activity is geographically limited. Commercial success is linked to the policies of 1-2 key individuals. Financial expertise limited to bank or chartered accountant advice
	Medium-sized companies
Services sector	Large number of workers. Need for long-term funding sources to expand operations
Retail	Large number of workers. Large volume of accounting and accounting work, as well as cash transactions
Manufacturing industry	Funding problems. Need for premises
	Large firms
Service sector and	Focus on expansion and market capture.
	Segment characteristics
retail	Existence of a wide network of branches with extensive sales staff and administrative control
Manufacturing industry	Greater need for investment in buildings and equipment. The desire to introduce new products, which creates the need for research and development. Constant desire to conquer new markets especially abroad
Agriculture	High level of production specialization. Seasonal cash flow problems. Relatively low return on capital

"K-segmentation" method ("post hoc" method)

The "K-segmentation" method ("post hoc" method) is aimed at searching for signs of segmentation with subsequent selection of segments. The method implies that there is a consumer market, the structure of which is unknown and cannot be determined “a priori” based on specified criteria.

Conditions for the effectiveness of the method implementation:

The company has at least 100 clients (buyers or persons to whom the service is provided) per month.

Possibility of conducting a survey of the company's clients.

Availability of special software "DA-system 4.0" (company "Context") or STATISTICA 4.3 (company StatSoft).

Segmentation Stages

Determining Possible Signs of Segmentation

Obviously, the signs of segmentation cannot be determined without appropriate consumer research. But, nevertheless, it is always possible to assume possible signs of segmentation. First, you can survey the company's salespeople who directly sell to customers about ways in which customers may be divided. And secondly, you can use social-income and socio-demographic characteristics of segmentation (gender, age, income, profession, etc.).

Conducting a survey

At the second stage, a questionnaire is compiled and a survey is conducted (in any form: written, oral, group conversation, field experiment, survey by technical means). The purpose of the survey is to assign each client to certain differentiated points of the segmentation characteristics selected at the second stage. The specified condition (the presence of differentiated points in each question) determines the need to form

only closed questions. Only the company’s clients who purchased a product or service (or were being serviced) in a local period of time, preferably within 1 month, are surveyed

The differentiated points of each question are assigned corresponding serial numbers, which will be entered as an option for the respondent to answer the question. The survey results are entered into the appropriate program

Determining "suitable" segmentation features

The degree of “suitability” of a certain segmentation feature can be considered the presence of a certain mathematical correlation between a pair of supposed features (the presence of a correlation between questions in a given study). The presence of a high level of correlation (the highest value of the calculated mathematical correlation coefficient) indicates the presence of a relationship between the characteristics, that is, the possibility of their joint use. And it is possible to identify a stable segment group only at the intersection of two segmentation characteristics.

Selecting segments

Based on the obtained segmentation characteristics, segment groups (also called “consumer segments”) can be formed. Typically, their number does not exceed 5-6 groups. Groups with the most high percentage identified as market segments.

Segment formulation

At the last stage, the selected segments are given a description and assigned special marketing nicknames - for example, for new customers - “newbie”, for old customers - “old-timers”. Based on these selected segments, further design, modernization or positioning of the product can be carried out.

Criteria-based assessment of promising segments

The final stage of the formation of segment groups is the “criteria assessment” of the selected segments, within the framework of which their compliance with a number of marketing criteria for the successful positioning of products on them is considered.

Several criteria assessments are considered:

Compliance with the capacity of the segment - a positive parameter can be considered the ability to direct all the production capacity of the enterprise to work in this segment, i.e. The segment capacity must be greater than or equal to the production capacity of the enterprise.

The segment accessibility criterion is for the enterprise: analysis of this issue gives management information about whether it has the opportunity to begin promoting its services in the selected segment or whether it still needs to take care of forming a sales network and establishing relationships with intermediaries. That is, the question is: has the company worked with this segment before?

The criterion for the materiality of a segment is an assessment of how stable this group of consumers is in terms of its main unifying characteristics. Is this segment growing, stable or declining? Is it worth targeting your production capacity to it?

By criterion compatibility of the segment with the market main competitors The management of the enterprise must receive an answer to the question to what extent the main competitors are ready to sacrifice the selected market segment

Conclusion

My work examined the basic methods and principles of segment marketing analysis. In reality, there are many more methods for defining a market segment. Ultimately, segmentation is not an end in itself. Its main task is to answer the question whether stable groups of consumers of a given product can be identified. If such groups are not identified, then the company’s activities can be focused on all buyers of this product (the so-called mass marketing strategy)

Literature

Alekseev A.A. Marketing research of the services market: Textbook. manual. - St. Petersburg: Publishing house SPbUEF, 1998

Motyshina M.S. Methods and models of marketing research: Textbook. manual. - St. Petersburg: Publishing house SPbUEF, 1996

Golubkov E.P. Marketing research. - St. Petersburg: 1999

Kotler, Philip. Principles of marketing.-5th ed.

Arenkov I.A. Marketing research: fundamentals, theories and methods: Textbook. manual. - St. Petersburg: Publishing house SPbUEF, 1992

5.1. Segmentation principles

One of the most important issues of brand effectiveness is the correct determination of the market segment in which it is more profitable to position it. Market segmentation is the division of the market into clear groups of indicators, each of which may require separate products and (or) marketing mixes.

Segmentation is necessary, since different groups of potential consumers have different tastes and preferences, which are important to take into account when creating and promoting a brand.

Different sales channels may be needed to address different market segments, as well as appropriate pricing and brand positioning methods. Therefore, a division of the market into certain groups that are homogeneous on some basis is necessary.

Issues of market segmentation in an organization are usually dealt with by the marketing department. In order to carry out segmentation, marketing staff determine the market in which the brand can best be positioned, namely the consumer needs to be satisfied and the corresponding consumer groups. You can identify the interesting attitude of consumers of the market in question to the brand based on factors such as:

1) previous experience in promoting the product in question or a similar product to the market;

2) personal experience marketing employees;

3) experience of competitors.

So, based on these factors, we can distinguish different market segments. In this case, the criteria for identifying segments can be very different, for example, income, age, gender or geographic location of consumers. It is better to segment according to several parameters at once, then the efficiency and accuracy of segmentation increases. For example, the needs and desires of consumers may depend simultaneously on both income level and age and marital status. In fact, the requirements of all consumers are individual, so each can represent a separate market segment. However, it is more expedient to identify large groups of buyers that differ from each other in the basic requirements for goods and in their marketing responses.

When conducting market segmentation, one should distinguish between such basic concepts as principles and criteria of segmentation. The principle of segmentation is a set of indicators by which the sample is divided into separate classes. As a rule, the principle of market segmentation is a complex concept and can include a large number of indicators. The segmentation criterion is an indicator that divides the market in relation to the marketing mix or its elements, i.e. it is a narrower concept.

The following basic principles of segmentation are distinguished:

1) geographical principle(division can be by region, size, climatic characteristics or population density);

2) psychographic principle(level of social class, lifestyle, personality type);

3) behavioral principle(intensity of consumption, degree of commitment, reason for making a purchase, benefits and status of the user, attitude towards the product);

4) demographic principle(age, gender, marital status, income level, occupation, education, nationality, etc.).

In geographic segmentation, it is customary to divide the market into different geographical units, such as states, regions, states, etc. In this case, an organization can position its brand in one or several geographical areas. In addition, if the differences in needs in different regions are taken into account and the characteristics of the brand offered are adjusted accordingly, the company will be able to operate in all segments.

However, demographic segmentation is more popular, since, on the one hand, it is easier to identify demographic indicators, and on the other hand, they have a decisive influence on the formation of consumer requirements. For example, in the clothing and cosmetics market, the most important segmentation criterion is gender.

Segmentation based on psychographic principles also echoes this principle of segmentation. It is important to consider here that consumers from the same demographic may have different psychographic characteristics.

Separately, segmentation based on behavioral principles should be noted. In this segmentation, consumers are divided into groups depending on their nature, knowledge and reaction to the product offered. Most economists believe that this principle of segmentation should be used as a basis when studying the market, and it is best to group consumers based on the reasons for making a purchase or the benefits sought. Segmentation based on different reasons for purchasing helps to identify the level of use of the proposed brand. In addition, it is good to divide the market by consumption intensity into active, moderate and weak consumers. These groups of people tend to have similar demographic and psychographic characteristics.

In a brand loyalty market, that is, a market in which the majority of buyers express their preference for a single brand, it is recommended to segment by product loyalty. It is difficult for companies operating in such markets to increase their share, and for other companies it is almost impossible to introduce their products to the market.

By conducting a commitment analysis, a company can gain a lot of useful information. It is important to study the characteristics of unconditional brand adherents and tolerant brand adherents (this will help identify the main competitors). Unconditional loyalists are a group of consumers who always buy only the brand in question. They will be the basis of the target market of this company. Tolerant followers usually include consumers who often buy a given brand, but sometimes prefer competitors' products.

It is also important to look at consumers who prefer competitors' products to identify gaps in the marketing company, and studying a group of people who do not have preferences can help the company find a way to attract them into the group of brand loyalists.

Segmentation parameters such as the degree of buyer readiness to perceive the brand and attitude towards the brand are also of great importance. The degree of buyer readiness to perceive a brand shows how aware consumers are of the basic properties of the brand and its existence as such. The attitude towards the proposed brand can be either positive, negative or indifferent, therefore it is necessary to separate consumers into different groups with different opinions and work in each segment according to a separate scheme.

Once the main market segments have been identified, their attractiveness should be assessed. To do this, the following factors are considered:

1) the total volume of allocated segments;

2) sales growth rate per year;

3) profitability;

4) the severity of competition;

5) necessary technological requirements;

6) the degree of influence of inflation;

7) level of environmental impact;

8) social and political aspects.

In addition, market segments can be assessed not only in terms of their attractiveness, but also in terms of the business strengths that the organization should have in this segment.

Then the selection of target market segments is carried out, i.e., the selection of one or more suitable segments for positioning your brand on them. As a rule, those market segments are selected that have a more favorable ratio of capacity and cost of sales.

After analyzing the attractiveness of segments and selecting target ones, you should determine an appropriate strategy for reaching the market. The following basic strategies exist:

1) differentiated marketing- the most expensive option. It involves the company’s presence with its brand in several market segments at once, subject to the development of separate offers for each of them;

2) concentrated marketing- cheaper option. The strategy is to focus on a large share of one or more submarkets, rather than focusing on a small share of a large market. This strategy is best suited for companies with limited resources;

3) undifferentiated marketing- the most economical option. This strategy involves addressing the entire market at once with one offer, without concentrating efforts on any individual segments. To achieve this, the marketing program is developed in such a way as to attract the maximum number of consumers. Basically, mass marketing techniques are used here: mass production, mass distribution and mass advertising of one specific brand. This strategy is often considered the most profitable in branding. When choosing a market coverage strategy, it is better to rely on the following parameters:

1) company resources;

2) degree of market homogeneity;

3) stage of the life cycle of the product in question;

4) marketing strategies of competitors.

The considered approach to market segmentation is most often used at present by most firms. However, there is another new approach to segmentation, which is based on the use of statistical methods. This segmentation uses data from quantitative marketing research conducted on a representative sample of potential consumers. Some experts believe that this particular method of market segmentation gives the most objective results.

So, market segmentation using statistical methods is carried out as follows.

First, the main (base) market is determined, just as when segmenting in the traditional way. A questionnaire is then developed, consisting of five basic sections. The first section, socio-demographic, should include a description of the respondent. The other four sections are marketing mix, namely, consideration of the so-called 4Ps (product, place, price, promotion), which includes product, promotion, place, price.

Next, directly quantitative marketing research is carried out using a random sample representative of the selected main market. The received answers to the questions are carefully analyzed, and integral coefficients are calculated, with the help of which the marketing mix is ​​described on an interval scale.

Cluster analysis is then carried out in the space of the derived coefficients. Clusters identified in this way are taken to be the necessary segments, since they ultimately consist of groups of consumers who have a similar reaction to the marketing mix. In conclusion, it is customary to describe the demographic parameters of the clusters under consideration. To do this, their potentials, capacity and availability are determined, and then target segments are selected based on the data obtained.

The considered statistical method of market segmentation has several main advantages compared to the traditional approach, namely:

1) the results of market segmentation are practically independent of the assumptions made by researchers;

2) in the work on segmentation, the entire volume of primary information obtained as a result of quantitative research is used, so it is possible to verify strategic hypotheses, whereas with traditional segmentation they rely on tactical ones;

3) reliable primary market data helps to carry out segmentation efficiently and accurately, since in this case all the information about the segments that is necessary for strategic planning. However, the statistical approach to market segmentation also has its drawbacks:

1) when using this approach, it is difficult to correctly identify the identified segment. In addition, sometimes segments cannot be described in terms of demographic characteristics;

2) applying a statistical approach to market segmentation requires significant costs, so this approach is best used within fairly large business projects.

Now let’s look at in which cases it is better to use a traditional and in which cases a statistical approach to market segmentation.

In practice, of course, the traditional approach has more supporters, since it is much cheaper than the alternative, although when using it it is often difficult to immediately assess the quality of the segmentation performed. The correctness and accuracy of the work done can only be determined by sales results, although it is difficult to understand what exactly the level of sales is based on: correct segmentation or not. Additional market research will be required.

The statistical approach does not consider the principles of segmentation as such; it is based on the simultaneous use of segmentation criteria and main marketing criteria. In principle, this is quite difficult, although with a little experience, cluster analysis can be quickly carried out on a computer, and integral variables for clustering can only be calculated “manually”.

Let us briefly consider the methodology for constructing integral coefficients for clustering.

Of course, in a simpler version, it would be good to have only one indicator that determines the respondent’s attitude to the so-called 4Ps. But most experts believe that it is more appropriate to use four indicators belonging to an interval scale, each of which corresponds to one of the elements of the marketing mix and divides the entire sample according to their relation to this component. In this case, we will get some grouping in four-dimensional space. Then you can control the size and concentration of groups in each of the four dimensions and simultaneously assess the response of respondents to all elements of the marketing mix.

It is important to note that when using a statistical approach in segmentation, there is a possibility that the subjective opinion of the researcher will influence the result. After all, here data about the respondent is obtained through a regular survey, using simple questions, so the survey results often do not show the degree of influence of each of them on the respondent’s perception of the brand in question as a whole. The questions necessary to determine this degree of influence will generate further questions about the influence of previous questions, and then the researcher will have to determine the indicators necessary for summation into the final integral indicator. Nevertheless, such subjectivism gives a much more objective result than the subjectivism that manifests itself when choosing the principle of segmentation in the traditional approach.

When applying the statistical approach, the integral variable is calculated as follows:

1) first find out the list of indicators that will subsequently make up each integral variable;

2) then all variables lead to a quasi-interval scale of one direction. Thus, it turns out that all indicators have numerical values ​​that determine specific distances between values. The larger this numerical value, the greater the positive contribution this indicator makes to the value of the integral variable;

4) at the last stage, the degree of influence of each indicator on the value of the integral variable is determined, i.e. its weight, and then all indicators are summed up. This sum will represent an integral variable.

Instead, a factor analysis can be performed at the end. This will help reduce the dimension of the indicator space. With this approach, the weight of participation of each indicator in the factors is selected automatically. However, the main difficulty is that there is often more than one factor, and in this case it becomes difficult to understand how the segment responds to each component of the marketing mix.

The accuracy of the resulting integral variable can be checked. To do this, you can either study the linear distribution and histograms (large clumps at the edges will indicate an incorrect calculation), or study the joint distributions of the integral variable and demographic indicators (for them the relationship is obvious).

In addition, at all stages of calculations it is important to determine and take into account confidence intervals. Since when calculating an integral variable, all conclusions become mostly probabilistic, then in order to make the right marketing decisions, the error of calculations should be taken into account.

So, the two considered approaches to market segmentation are quite different from each other, but in any case, the effectiveness of segmentation depends on the extent to which the resulting segments are measurable, accessible, solid and suitable for targeted actions.

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