Principles of consumer market segmentation. Principles of market segmentation

There is no single method of market segmentation. The marketer needs to try segmentation options based on different variables, one or more at a time, in an attempt to find the most useful approach to viewing market structure. For such a situation, there is an excellent statistical method for studying the influence of factors on the result. We are talking about factor analysis. Using this analysis, you can easily analyze the influence of a particular factor on the final result. Select exactly those factors that carry the maximum significance in influencing the final result.

Geographic, demographic, psychographic and behavioral are the main indicators used by marketers.

• A) Geographical segmentation involves dividing the market into different geographical units: states, states, regions, counties, cities, communities. The company may decide to operate in one or several regions, or in all regions, but taking into account the needs and characteristics determined by geography.
• b) Segmentation by demographics consists of segmenting the market into groups based on demographic variables such as gender, age, family size, stage of the family life cycle, income level, occupation, education, religious belief, race and nationality. Demographic variables are the most popular factors used to differentiate consumer groups. One of the reasons for this situation is that needs and preferences, as well as the intensity of product consumption, are often more closely related to demographic characteristics. And also demographic characteristics are the easiest to measure and study. Even in cases where the market is not described in terms of demographics (say, based on personality types), it is still necessary to make connections to demographic parameters.
• V) For psychographic segmentation Buyers are divided into groups based on social class, lifestyle, or personality characteristics. Members of the same demographic group can have completely different psychographic profiles.

Social class. Belonging to one of the social classes greatly affects a person’s preferences regarding cars, clothing, household accessories, leisure activities, his reading habits, choice of retail outlets, etc. Many companies design their products and or services with representatives of a particular social class, providing for the inclusion of properties and characteristics that appeal specifically to them.

Lifestyle. In the same chapter, we already noted that lifestyle influences people’s interest in certain products. Sellers of branded and generic goods are increasingly segmenting markets based on consumer lifestyles. For example, a jeans manufacturer wanted to create jeans for one particular group of men, such as “active earners,” self-indulgent pleasure seekers, “traditional” homebodies, fidgety workers, “business leaders,” or successful “traditionalists.” Each of these groups will require jeans of a special cut, at different prices, offered through different advertising texts, through different retailers, etc. And if a company doesn't announce the lifestyle the product is intended for, its jeans may not attract much interest from any group of men.

Personality type. Personality variables are also used by sellers as a basis for market segmentation. Manufacturers give their products personality characteristics that match the personal characteristics of consumers. In the late 50s, Ford and Chevrolet cars were advertised as cars for people of different personality types. It was generally accepted that Ford buyers were people “independent, impulsive, courageous, sensitive to change and self-confident, while Chevrolet owners were conservative, economical, prestige-conscious, less courageous and tending to avoid extremes.” Researcher Franklin Evans decided to test the validity of these views by subjecting Ford and Chevrolet owners to the usual personality test, which measured their needs for success, influence, change, aggressiveness, etc. Not Considering a slight superiority on the basis of achieving influence, the results of assessments of Ford owners were not much different from the results of assessments of Chevrolet owners. Evans concluded that the convergence of assessment results makes it virtually impossible to divide audiences by personality type. Differences by personality type do occasionally appear in some more recent studies. Ralph Westfall has found evidence to support differences in personality types among convertible and hardtop car owners. According to his data, the former seem to be more active, impulsive and sociable people.

d) When segmented by behavioral characteristics Buyers are divided into groups depending on their knowledge, attitudes, nature of use of the product and reaction to this product. Many marketers consider behavioral variables to be the most appropriate basis for forming market segments.

Reasons for making a purchase. Buyers can be differentiated based on whether they have an idea, make a purchase, or use a product. For example, orange juice is most often drunk for breakfast. The manufacturer may try to advertise it as a drink suitable for both second breakfast and lunch. The Curtis Candy confectionery company introduced the custom of a “merry treat” on All Saints’ Day, when every family is ready with sweets as a gift to the little brats who knock on the door.

Benefits sought. One effective form of segmentation is to classify buyers based on the benefits they seek in a product.

Benefit-based segmentation requires identifying the core benefits that people expect from a particular product class, the types of consumers seeking each of those core benefits, and the core brands that provide some degree of those benefits.

Status user. Many markets can be divided into segments of non-users, former users, potential users, new users and regular users. Large companies seeking to gain a large market share are especially interested in attracting potential users, while smaller companies are trying to attract regular users to their brand. Potential users and regular users require different marketing approaches.

Intensity consumption. Markets can also be divided into groups of weak, moderate and active consumers of the product. Heavy users often make up a small portion of the market, but they account for a large percentage of total product consumption. Naturally, a manufacturer would rather attract one active consumer for its brand than several weak ones.

Degree of commitment. Market segmentation can also be carried out according to the degree of consumer commitment to the product. Consumers may be loyal to brands, stores, and other distinct entities. Let's dwell only on loyalty to brands. Let's imagine five branded products: A, B, C, D and E. Based on the degree of commitment to them, buyers can be divided into four groups:

Unconditional supporters. These are consumers who buy products of the same brand over and over again. Thus, the pattern of purchasing behavior type A, A, A, A, A, A represents a consumer with an undivided commitment to brand A.

Tolerant followers. These are consumers who are loyal to two or three product brands. The type A, A, B, B, A, B purchasing behavior pattern represents a consumer with loyalty divided between branded goods A and B.

Fickle followers. These are consumers transferring their preferences With one brand to another. A pattern of purchasing behavior of type A, A, A, B, B, B suggests that the consumer has shifted his preferences from brand A to brand B.

"Wanderers". These are consumers who are not loyal to any branded product. The pattern of purchasing behavior of type A, B, D, B, D, B suggests that we are dealing with a non-committed consumer who either buys any brand currently available or wants to purchase something different from the existing assortment. Any market consists of different numerical combinations of buyers of these four types.

A brand loyalty market is a market in which a large percentage of buyers demonstrate unconditional loyalty to one of the brands available in it. In this sense, the markets for toothpaste and beer can perhaps be called markets of fairly high brand loyalty. Firms trading in the brand loyalty market will find it very difficult to increase their share of the market, and firms seeking to enter it will find it very difficult to do so. A firm can learn a lot by analyzing the distribution of allegiances in its market. She should definitely study the characteristics of unconditional adherents of her own branded product.

The degree of buyer readiness to perceive the product. At any given time, people are in varying degrees of readiness to purchase a product. Some of them are generally aware of the product, others are aware, others are informed about it, and others are interested in it. the fifth ones want it, the sixth ones intend to buy it. The numerical ratio of consumers of different groups greatly affects the nature of the marketing program being developed.

Attitude to the product. The market audience may be enthusiastic, positive, indifferent, negative or hostile towards the product. The more clearly relationships can be identified with demographic variables, the more effective an organization can be in reaching its best prospects.

Basic principles of segmenting consumer markets.

There is no single method of market segmentation. The marketer needs to try segmentation options based on different variables, one or more at a time, in an attempt to find the most useful approach to viewing market structure. We will now look at the main geographic, demographic, psychographic and behavioral variables used to segment consumer markets:

Figure 2.5. – Types and criteria of segmentation

Geographical 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 areas or 2) in all areas, 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.
Table 2.1.- Market segmentation by geographic characteristics

Demographic segmentation involves dividing a market into groups based on demographic variables such as gender, age, family size, stage of the family life cycle, income level, occupation, education, religious beliefs, race and nationality.

Demographic variables the most popular factors that serve as the basis for distinguishing consumer groups. One of the reasons for this popularity is that needs and preferences, as well as the intensity of product consumption, are often closely related to demographic characteristics. For example, Ford Motor Company used age characteristics of buyers to create a target market for its Mustang model. The car was designed to attract young people who wanted an inexpensive sports car. However, the company soon discovered that Mustangs were being purchased by representatives of all age groups.
The true target market for the Mustang was not those who are young in years, but everyone who is young at heart!

Table 2.2. - Market segmentation by demographic characteristics

Another reason is that demographic characteristics are easier to measure than most other types of variables. Even in cases where the market is not described in terms of demographics (say, based on personality types), it is still necessary to make connections to demographic parameters.
We will now illustrate exactly how certain demographic variables are used to segment markets.

Age and stage of the family life cycle. The needs and capabilities of buyers change with age. Even a 6-month-old child is already different in its consumer potential from, say, a 3-month-old. Realizing this, the toy company Alab Products developed 12 different toys for consistent use by children from three months to a year. One is intended for use when babies are just starting to reach for objects, the other when the baby is developing grasping movements, etc. This segmentation strategy helps parents and other gift givers easily select the appropriate toy based on knowledge of the child's age.
Yet age and family life-cycle stage variables may not be reliable. Floor. Segmentation based on gender has long been applied to clothing, hair care products, cosmetics and magazines. From time to time, other market players discover the possibility of segmentation based on gender.

Income level. Another age-old technique for dividing the market for goods and services such as cars, boats, clothing, cosmetics and travel is segmentation based on income level. Sometimes the possibilities of such segmentation are realized in other industries. Segmentation by several demographic parameters. Most firms segment markets based on a combination of two or more demographic variables. For example, a boarding house takes care of blind people, takes care of maintaining their psychological state, and provides professional education. However, due to disabilities The boarding house is not able to provide assistance to all blind people of different social status. An example of multifactorial segmentation of these individuals based on age, gender and income level. The boarding house chose to serve blind men of working age with low level revenue because its management believes it can best meet the needs of this particular group of potential customers.

Table 2.3.- Segmentation of consumers by life cycle stages

Segmentation based on psychographic principles. In psychographic segmentation, buyers are divided into groups based on social class, lifestyle, and/or personality characteristics. Members of the same demographic group can have completely different psychographic profiles. Lifestyle influences people's interest in certain products. Sellers of branded and generic goods are increasingly segmenting markets based on consumer lifestyles. For example, a jeans manufacturer wanted to create jeans for one particular group of men, such as "active earners," self-indulgent pleasure seekers, "traditional" homebodies, fidgety workers, "business leaders," or successful "traditionalists." Each of these groups will require jeans of a special cut, at different prices, offered through different advertising texts, through different retailers, etc. And if the company does not announce what lifestyle the product is intended for, its jeans may not arouse much interest among one group of men..

Selection of target market segments. Marketing segmentation reveals the possibilities of various market segments in which the seller will act. After this, the company needs to decide:

1) how many segments should be covered

2) how to determine the most profitable segments for it.

Let's look at both of these problems in turn.

Market segmentation- the main method of marketing, with the help of which an enterprise divides it, taking into account the results of analysis according to certain criteria, into certain consumer segments. It is carried out for the subsequent identification of target segments that require a different approach in the strategy for developing new types of products, organizing product distribution, advertising and sales promotion. A market segmentation strategy allows an enterprise, taking into account its strengths and weak sides When choosing marketing methods, choose those that will ensure the concentration of resources in those areas of activity where the enterprise has maximum advantages or at least minimal disadvantages. When identifying segments and choosing a target one, you should always take into account the scale of the market and emerging trends in it.

Segmentation according to the degree of consumer readiness for a positive perception of new products is very important. On this basis, a fairly stable division of consumers has developed.

Table 2.4. - Segmentation of consumers by their behavior in the market

When segmenting based on buyer behavior divided into groups depending on their knowledge, attitudes, nature of use of the product and reaction to this product. Many marketers consider behavioral variables to be the most appropriate basis for forming market segments.
Reasons for making a purchase. Buyers can be differentiated based on whether they have an idea, make a purchase, or use a product. For example, the reason for air travel could be something related to business, vacation, or family. An airline may specialize in serving people for whom one of these reasons predominates. Thus, charter airlines serve those whose vacation includes air travel somewhere.
Occasion-based segmentation can help firms increase product usage. One effective form of segmentation is to classify buyers based on the benefits they seek in a product. D. Yankelovich applied segmentation based on the benefits sought to the purchase of watches. He found that approximately 23% of buyers purchased watches at the lowest prices, another 46% based their purchase on durability and overall quality of the product, and 31% purchased watches as a symbolic reminder of an important occasion.

Segmentation based on benefits requires identifying the main benefits that people expect from a particular class of product, the types of consumers who seek each of these main benefits, and the main brands that have some degree of these benefits. One of the most successful examples of benefit-based segmentation was reported by R. Haley, who studied the toothpaste market. As a result of his research, Haley identified four segments based on types of benefits: savings, medicinal effects, cosmetic effects, and taste. The audience of each segment had demographic, behavioral and psychographic characteristics unique to it. For example, consumers interested in preventing tooth decay turned out to be people with large families, active consumers of toothpaste, conservatives by nature. In addition, representatives of each segment had their own favorite brands of pasta. A toothpaste company can use these results to determine which benefit segments like its product, determine the key characteristics of that segment, and identify key competing brands. The company may also search for some new benefit and launch a branded paste on the market that provides this benefit.

User status. Many markets can be divided into segments of non-users, former users, potential users, new users and regular users. Large companies seeking to gain a large market share are especially interested in attracting potential users, while smaller companies are trying to attract regular users to their brand. Potential users and regular users require different marketing approaches.
Particular attention is paid to the status of users of public marketing organizations. Drug treatment clinics develop rehabilitation programs to help those who regularly use drugs give up the habit. In particular, conversations are organized between former drug addicts, designed to discourage young people (who do not use drugs) from trying drugs.

Consumption intensity. Markets can also be divided into groups of weak, moderate and active consumers of the product. Heavy users often make up a small portion of the market, but they account for a large percentage of total product consumption. The example of beer consumption shows that 68% of respondents do not drink it. The remaining 32% were divided into two groups of 16% each. One was made up of weak consumers, who accounted for 12% of the total volume of beer consumption, the other was made up of active consumers, consuming 88% of beer, i.e. seven times more weak. Naturally, a brewer would rather attract one active consumer for his brand than several weak ones. Active consumers of a product share common demographic and psychographic characteristics, as well as common advertising preferences. In the case of active beer consumers, it is known that among them there are more workers than among weak consumers, and that their age is from 25 to 50 years, and not under 25 and over 50 years old, as is observed among weak consumers. They typically watch TV for more than three and a half hours a day (as opposed to more than two hours, like weak consumers) and still prefer sports programs. Such data helps the market player in setting prices, developing advertising messages and strategies for using advertising media. Public marketing organizations often face the dilemma of the active consumer in their work. Family planning agencies typically focus their efforts on large families, although it is precisely in such families that they most stubbornly resist the perception of appeals for birth control. The National Safety Council targets disruptive drivers, even though these drivers are the least responsive to messages about driving safely. These organizations must decide whether to focus efforts on a small number of less susceptible persistent offenders or a large group of more susceptible minor offenders.
Degree of commitment. Market segmentation can also be carried out according to the degree of consumer commitment to the product. Consumers may be loyal to brands, stores, and other distinct entities. Let's imagine five branded products: A, B, C, D and E. Based on the degree of commitment to them, buyers can be divided into four groups: Unconditional adherents. These are consumers who buy the same brand of product all the time. Thus, the pattern of purchasing behavior type A, A, A, A, A, A represents a consumer with an undivided commitment to brand A.

Tolerant followers. These are consumers who are committed to two or three brands. The A, A, B, B, A, B buying behavior pattern represents a consumer with loyalty divided between brand A and B.

Fickle Followers. These are consumers who transfer their preferences from one product brand to another. A pattern of purchasing behavior of type A, A, A, B, B, B suggests that the consumer has shifted his preferences from brand A to brand B.

Wanderers. These are consumers who are not loyal to any branded product. The A, B, D, B, D, B pattern of purchasing behavior suggests that we are dealing with a non-commitment consumer who either buys any brand currently available or wants to purchase something different from the existing assortment.
Any market consists of different numerical combinations of buyers of these four types. A brand loyalty market is a market in which a large percentage of buyers demonstrate unconditional loyalty to one of the brands available in it. In this sense, the markets for toothpaste and beer can perhaps be called markets of fairly high brand loyalty. Firms trading in the brand loyalty market will find it very difficult to increase their share of the market, and firms seeking to enter it will find it very difficult to do so.

A firm can learn a lot by analyzing the distribution of allegiances in its market. She should definitely study the characteristics of unconditional adherents of her own branded product. Colgate has found that its unconditional adherents are largely middle class with large families and increased concern for their own health. These characteristics clearly define the target market for the company's toothpaste.
By studying tolerant adopters, a firm can identify the brands that compete most intensely with its own. If many of Colgate's customers also buy Crest, the company may try to improve its brand positioning relative to Crest, perhaps through direct comparison advertising. Studying consumers who abandon its brand for others will help the firm become aware of its marketing weaknesses. As for consumers who do not have loyalties, the company will be able to attract them to itself by offering its brand.

At the same time, the company must remember that the nature of consumer behavior, which seems to be explained by commitment to the brand, may in fact be a manifestation of habit or indifference, a response to low prices or the lack of availability of goods of other brands. The concept of brand loyalty is not always clear-cut and should therefore be used with caution.
The degree of buyer readiness to perceive the product. At any given point in time, people are in varying degrees of readiness to purchase a product. Some of them are not aware of the product at all, others are aware, others are informed about it, others are interested in it, others want it, and others intend to buy it. The numerical ratio of consumers of different groups greatly affects the nature of the marketing program being developed. In general, the marketing program should be structured so that it reflects redistributions in the numerical composition of groups of people who are at different degrees of readiness to make a purchase.

Attitude to the product. The market audience may be enthusiastic, positive, indifferent, negative or hostile towards the product. Political party campaigners making door-to-door election campaigns are guided by the voter's attitude when deciding how much time to spend working with him. They thank voters who are enthusiastic about the party and remind them to vote; do not waste time trying to change attitudes from negative or hostile voters; but they strive to strengthen the positive-minded in their opinion and win over the indifferent to their side. The more clearly relationships can be identified with demographic variables, the more effective an organization can be in reaching its best prospects. Market Segment Profile - College Students. A recent study examined spending patterns and other characteristics of a specific market segment: college students.
Among other types of expenses, the study examined the cost of purchasing food and beverages. Beverage consumption by this audience is particularly high. Among the preferred soft drinks orange juice, milk and various soft drinks. In another group of drinks, beer and wine turned out to be the most popular, while lovers of stronger alcoholic drinks preferred rum. In addition to basic food items, students most often buy snacks. The average college student makes seven shopping trips each month, and 76% of students in the study group shopped at a department store.
Within this segment, toiletries are very popular. Thus, 81% of female students buy hair care products and 80% buy cosmetics. Shaving creams and facial soaps are also popular.
The best means of communicating with this group of buyers is institute newspapers, which, according to them, are regularly read by 87% of respondents. Radio and television are less effective in this sense. Many students are willing to use coupons, discount offers on the price of purchased goods, or free samples.

Basic principles of segmenting markets for industrial goods. Many of the same variables that are used to segment consumer markets can be used as a basis for segmenting industrial markets. Buyers of manufactured goods can be segmented geographically and along a number of behavioral variables based on benefits they seek, user status, consumption intensity, degree of commitment, readiness to accept the product and attitude towards it.
Most often, segmentation of markets for industrial goods is carried out according to the types of end consumers of the product.

Different end consumers often look for different benefits in a product. This means that in relation to them you can use different complexes marketing. Let's take the transistor market as an example.
The transistor market consists of three submarkets: military, industrial and commercial.
Military buyers pay great attention to the quality of goods and their availability. Firms selling transistors in the military push must invest heavily in R&D, use sales agents familiar with military procurement procedures, and have fairly narrow product specialization in production.

Buyers of industrial goods, such as PC manufacturers, are interested in high quality goods and a well-established system Maintenance. Price, as long as it does not become excessive, is not of decisive importance to them. In this market, the transistor manufacturer invests modestly in R&D, employs traveling salespeople with technical expertise, and offers a broad product line. Commercial buyers, such as manufacturers of pocket radios, are primarily interested in price and prompt delivery when purchasing components. In this market, the transistor manufacturer spends little or nothing on R&D, uses aggressive salespeople with no technical training, and offers a very basic range of products that can be mass-produced. Another variable that can be used to segment the industrial goods market is weight of the customer. Many companies establish separate systems for servicing large and small clients.

Industrial firms typically evaluate the capabilities of their target markets by using several variables simultaneously to segment them.

Hello! In this article we will talk about such an important stage of working with the market as segmentation.

Today you will learn:

• What is market segmentation?
• What principles and criteria of segmentation exist;
• What methods can be used for market segmentation.

The concept of “Market Segmentation”

Modern business is impossible without, and marketing is impossible without segmentation. It is impossible to satisfy the entire market with one product.
Consumers differ from each other in demographic characteristics, social status, purchasing power, behavioral factors and, as a result, needs. This forces entrepreneurs to divide markets into segments.

Segment – a group isolated from the entire set of consumers (market), whose individuals have common features and respond similarly to different elements of the marketing mix.

Market segmentation – the process of identifying consumer segments in the market.

Let us highlight the main goals of market segmentation:

• More accurate identification and better satisfaction of the needs of the target audience;
• Increasing the competitiveness of the organization;
• Minimizing costs by concentrating efforts on the target segment.

Market segmentation criteria

The main criteria for the market segmentation process include:

• Sufficient volume of allocated segments. It must provide profitability;
• The segment must be quantifiable;
• Consumers within a segment must be similar in several ways and different from consumers in other segments;
• The selected target segment must be accessible to the company (sales and promotion channels);
• The need to assess the level in the segment;
• Possibility of full satisfaction of needs

Based on these characteristics, it is necessary to evaluate the segments identified in the market in order to select target segments for the enterprise.

Stages of market segmentation

There are three main stages of market segmentation. Let's look at each of them.

1. Segmentation. This stage involves a general analysis of the market and the identification of separate groups that differ from each other according to some characteristics. Segmentation can be represented in the form of three sequential steps:

• Selection of criteria and segmentation factors. Segmentation factors depend on the product, company, industry and market in which the company operates;
• Search for segments and market niches. At this stage, market segments are identified;
• Description of segments and market niches. This stage is characterized by a primary analysis of the selected segments.

1. Selecting a target segment. At this stage, it is necessary to conduct a full analysis of the selected segments according to the principles of segmentation. As a result, we should get target segments. The second stage is presented in the following steps:

• Segment assessment based on segmentation principles;
• Setting goals for selected segments. Goals include desired market share, sales volume, product offering, pricing, communications messages and distribution channels.

1. Positioning of products in selected segments includes the following steps:

• Identification of the key needs of each segment;
• Choosing a product positioning strategy for a specific segment;
• Drawing up a marketing plan for each segment with a detailed study of each element of the marketing mix (product, price, distribution, promotion).

Let's take a closer look at the product positioning process.

Positioning should be based on one of the following criteria:

• The degree of rationality of the consumer's purchase;
• Competitive advantages of the product that constitute value for the target consumer;
• Benefits of your product (cost-effectiveness of use, availability of service, etc.);
• Degree of product specificity;
• Product innovation;

Based on these criteria, you can choose one of the following product positioning strategies:

• Positioning for a specific audience (young mothers, motorcyclists, cyclists);
• Positioning on the functional features of the product (“Imunele” protects the immune system);
• Positioning to distance itself from competitors (“Cirque du Soleil”);
• Positioning on famous person. This could be the owner of the company (Steve Jobs) or the face of advertising campaigns, an official representative;
• Positioning on a separate product component (professional camera in an Apple smartphone);
• Positioning on product innovation (you suggested absolutely New Product or he was the first on the market);
• Positioning on a special service process (Restaurant “In the Dark”).

Principles of market segmentation

When considering the principles of market segmentation, it is advisable to separate the market for consumer and industrial goods, since the principles of segmentation for each of them differ.

Principles of segmentation in the consumer goods market

Let's present the data in the form of a table.

It is most effective to segment based on several principles, such as geographic and behavioral.

Principles of segmentation in the B2B market

The industrial market has its own characteristics when segmenting. The industrial goods market is represented by a limited number of large consumers, which changes a lot in the process of its segmentation.

Market segmentation methods

There are four main methods of market segmentation. Let's look at each of them.

Grouping method . This is the most common method of market segmentation. It involves a simple division of the market into groups of consumers that differ in some characteristics. For example, in the dark chocolate market we can distinguish the following groups: men, women and children.

Market division by benefits involves highlighting the benefits that a product carries and identifying groups of consumers in the market for whom these benefits will be of the greatest value. For example, the benefits of dark chocolate are healthfulness, absence of severe harm to the figure. Thus, we highlight a segment that monitors their health and the health of loved ones and people.

Functional map technique , when each product benefit is allocated to a specific group of consumers. For example, chocolate - sweet - is beneficial for children, does not harm the figure - for women, nutritious - for men.

Multidimensional market segmentation. In this case, the market is divided according to several segmentation criteria at once.

Example of consumer market segmentation

Situation: we make curly natural soap with peach aroma at home (Moscow, Tverskoy district). The production scale is small, so we will work on the consumer market.

IN in this example we will use a multidimensional market segmentation model. We will carry out segmentation based on three criteria – socio-economic, demographic and behavioral.

We immediately identified the Central Administrative District of Moscow as a territorial segment, since we are not able to deliver soap to other territorial units.

Thus, we received 9 consumer segments. To select the target segment, we provide data about our product. Soap with peach aroma, average production volume is 50 pieces per month, variable costs per unit of goods are 80 rubles, fixed costs are 200 rubles per month. The shape and color of the soap is chosen by the client. No delivery, pickup only.

The segment of wealthy men and women is not accessible to us due to our product distribution system. The distribution system does not allow us to fully offer goods for personal use, since in this case, the consumer purchases no more than three units of goods and it is beneficial for him to purchase all personal hygiene products in one place.

Thus, the most acceptable segments for us will be men and women with average and low incomes who want to purchase soap as a gift.

As a product offer, we can create gift baskets with soap various forms and colors and differentiate them by price.

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 famous Pareto law (law 80:20), which this application It 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 of one, say, age group can vary greatly for 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 the lifestyle or personal characteristics of 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 compared to other segmentation criteria, they are often used to better understanding 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, stimulating consumption 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 criterion “found advantage”, 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 environment etc. Figure 1 shows how manufacturers adapt their products to the advantages 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) random consumers, the number of which can be increased using special methods 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 macro-segmentation, the following criteria are primarily used: geographic 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 enterprises target certain types of their products at specific geographical zones. Enterprises of certain industries National economy 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 requirements various organizations to hardware and software are determined by the purposes for which 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 annually by 3%. New knowledge and technologies offer new opportunities, and therefore the search for new segments should be important direction in the activities of marketers.

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 companies additionally break down big cities to smaller ones geographical 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.

1. Market segmentation: content and principles.

Market segmentation- division of the market into areas (segments) according to various characteristics.

Segmentation method is to identify groups of buyers in the market that have similar purchasing needs and characteristics.

Benefits of using a segmentation approach.

By identifying and defining these types of consumer groups, a business is better able to develop a product or service that meets the needs of these groups.

This method is implemented through the creation of a new product and a new brand, based on a promotion campaign aimed at attracting the attention of the target segment.

Segmentation principles

Markets are made up of buyers, and buyers differ from each other in a variety of ways: needs, resources, geographic location, purchasing attitudes, and habits. Any of these parameters can be used as a basis for market segmentation.

Geographic principle of segmentation

It involves breaking up the market into different geographical units - states, states, regions, districts, cities, communities. A firm may decide to act:

in one or more geographic areas;

in all areas, but taking into account the differences in needs and preferences determined by geography.

Demographic principle of segmentation

It consists of segmenting the market into groups based on demographic variables such as gender, age, family size, stage of the family life cycle, income level, occupation, education, religious beliefs, race and nationality.

Segmentation based on psychographic principles

It involves dividing buyers into groups based on social class, lifestyle and/or personality characteristics. Members of the same demographic group can have completely different psychographic profiles.

Behavioral principle of segmentation

It involves dividing buyers into groups depending on their knowledge, attitudes, nature of use of the product and reaction to this product.

Segmentation by socio-economic principle

It is a description of the people who form the segment, and not at all an analysis of the factors that explain the manifestation of this segment. The use of a socio-economic group of characteristics is based on the hypothesis that it is differences in socio-economic profiles that determine differences in buyer preferences. Socio-economic factors are used as indicators of needs.

2. Goals and types of segmentation.

Market segmentation in marketing is a prerequisite for the successful functioning of a company. The essence of this process is to divide all possible consumers of goods/services into groups according to certain criteria. The goals of market segmentation are to identify groups (segments) that can be most effectively served by a given organization and where they will be most willing to purchase its services or goods. In accordance with the selected segment, a further promotion strategy will be built, sales channels will be selected, etc.

There are several types of segmentation, depending on the nature of its implementation and the type of buyer of goods and services. Depending on the nature of the implementation, types of segmentation are distinguished: 1) macro-segmentation, within which markets are divided by region, state, degree of industrialization; 2) micro-segmentation - the formation of buyer groups, segments of a single state, region, according to more detailed criteria; 3) segmentation in depth - they start with a wide group of buyers and then gradually deepen it depending on the classification of the end buyers of the product or service; 4) breadth segmentation - starts with a narrow group of buyers, further expanding depending on the scope of the product or service; 5) preliminary segmentation - carried out on initial stage marketing research, focuses on studying the maximum possible number of market segments; 6) final segmentation – the final stage of market analysis, the implementation of which is regulated by the capabilities of the enterprise and environmental conditions. Depending on the type of buyers of goods or services: segmentation of buyers of consumer goods and buyers of goods for industrial and technical purposes.

3. Segment-forming characteristics. (for consumer and industrial goods)

To segment the consumer goods market, the main features are geographical, demographic, socio-economic, psychographic and behavioral. (see 1 Market segmentation: content and principles)

4. Target market, “market niche”, market window.

One of the most important tasks of marketing research is to identify or clarify a group of buyers with similar characteristics who are most interested in a particular product of the company.

Market segment is a group of consumers who have one or more stable characteristics and are characterized by a similar reaction to the products offered and to a set of marketing incentives.

Target segment is the market segment to which the company directs its main marketing efforts to achieve its goals.

Target market segment – ​​one or more segments selected for the marketing activities of an enterprise.

A market niche is a segment of consumers for whom a product produced by a given enterprise is best suited to satisfy their needs.

A market window is a segment of consumers unoccupied by competitors whose needs are not adequately satisfied by existing products.

5. Types of targeted marketing.Concentrating efforts on one segment. Concentrated marketing means a company's narrow specialization in one specific industry segment. Concentrated marketing is beneficial for small companies, it can provide a high share in the target market (market niche), and can give a good start to a just starting business, from which the company can grow further, capturing new market segments. Companies that base their strategy on capturing one market segment usually successfully position themselves as experts and achieve absolute leadership in the niche. In such a strategy, it is recommended to set strict limits on specialization and not violate them.

Selective specialization. Selective specialization is a market coverage strategy in which a company sells products in several market segments at once. Target segments can be markets for complementary products (for example, the sale of confectionery products and the sale of dough) or completely non-overlapping products. In selective specialization, one market usually has a higher priority and the company devotes its best resources to it. Also, with this method of market coverage, the company often has good share in 1-2 segments, which allows it to reinvest income from these markets into the development of new market niches.

Product specialization. Product specialization is a market coverage option in which a company concentrates all its efforts and resources on the production of one product and sells it to all possible consumers in the industry. The product specialization strategy is often used by large companies for essential goods and for goods that are difficult to “impose” additional benefits on. This market coverage strategy provides good economies of scale and allows high sales levels to be achieved.

Market specialization. Market specialization is a strategy for reaching the target market, concentrating all efforts on a specific group of buyers and allowing to create high loyalty to the product by satisfying every single need of the target group. Market specialization is an extended concentrated marketing strategy and is used when a company already has a successful product in one of the market segments.

Full market coverage. Adhering to the strategy of total market coverage, the company strives to provide all consumer groups with all the necessary products. This strategy should not be confused with the concept of “mass marketing,” in which the company also targets the entire market. The difference with this theory is that in a full-market strategy, a company sells different products to different consumers. While with a mass marketing strategy, only one product is sold in all markets. Only large companies can implement a strategy of full market coverage.