| Is the practice of dividing a customer base into groups
of individuals that are similar in specific ways relevant
to marketing, such as age, gender, interests, spending
habits, usage, needs, and so on. |
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| Segmentation allows companies to: |
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Target groups effectively |
|
Allocate their marketing
resources |
|
Discover the business opportunities
within existing customer base |
|
Approach the untapped
market segments |
|
Develop products and
services according to the market needs |
| |
|
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| Customer segmentation is the key of a successful product/service
development, and sound marketing plan. On top of a proper
segmentation, the business can plan to allocate effectively
its limited resources toward the most profitable business
opportunities by targeting the most prominent market segment,
and or discovering a hidden opportunity with the existing
customer base. |
| |
| Segmentation in a nutshell is the grouping of business
customers or individual consumers into subgroups with
similar product or service needs. |
| |
| Needs based segmentation is the mostly used approach
for implementing the segmentation exercise. Other approaches
are determined according to the specific situation. Business
segmentation is different that consumer segmentation. |
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| Segmentation will lead to the following deliverables:
|
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Identification of the
different segments |
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Sizing each segment |
|
Valuating the different segments |
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Selecting the most prominent
segment |
|
Positioning the service
/ product offering accordingly |
|
