Fortune Telling Collection - Fortune-telling birth date - What does market segmentation mean?
What does market segmentation mean?
1. What do you mean by market segmentation?
Market segmentation refers to the market classification process that marketers divide the market of a product into several consumer groups according to the differences of consumers' needs and intentions, buying behaviors and buying habits through market research.
Every consumer group is a market segment, and every market segment is a group of consumers with similar demand tendencies.
Second, the basic principles and basis of market segmentation
1. The market is the sum of commodity exchange relations and can be subdivided by itself.
2. The existence of heterogeneous consumer demand.
3. The similarity of consumer demand distinguishes the difference of consumer demand.
4. Enterprises have their own advantages in different aspects.
Third, what is the role of market segmentation?
Market segmentation is not carried out according to product varieties and product series, but from the perspective of consumers (referring to final consumers and industrial producers), which is based on the theoretical basis of market segmentation, that is, the diversity and differences of consumer demand, motivation and purchase behavior.
Market segmentation plays an extremely important role in the production and marketing of enterprises.
1, which is beneficial to the selection of target market and the formulation of marketing strategy.
2. It is conducive to opening up market opportunities and opening up new markets. Through market segmentation, enterprises can analyze and compare the purchasing potential, satisfaction and competition of each market segment.
Explore market opportunities that are beneficial to enterprises, so that enterprises can make timely production and relocation sales decisions or prepare new product development plans according to their production technical conditions.
Carry out necessary product technical reserves, grasp the initiative of product upgrading, open up new markets, and better meet market demand.
3. It is beneficial to concentrate manpower and material resources into the target market. The resources, manpower, material resources and funds of any enterprise are limited.
By subdividing the market and choosing the appropriate target market, enterprises can concentrate people, money, materials and resources to gain advantages in the local market and then occupy their own target market.
4. It is beneficial for enterprises to improve economic benefits. The above three aspects can make enterprises improve their economic benefits.
In addition, after market segmentation, enterprises can face their own target market and produce marketable products, which can not only meet market demand, but also increase income;
Marketable products can accelerate the circulation of goods, increase the production batch, reduce the production and sales costs of enterprises, improve the labor proficiency of production workers, improve the quality of products and comprehensively improve the economic benefits of enterprises.
5. It is beneficial for enterprises to improve their competitiveness.
6. It is conducive to enhancing customer loyalty.
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