Market Segmentation

Behavioral segmentation

Dividing the market into groups based on consumer knowledge,usage pattern,response,price sensitivity,brand loyalty and benefit sought.

Business Market Segmentation

Many of the market segmentation bases can be applied to industrial market but some of the bases which are different are the following.

Operating Variables – based on  technology,user-nonuser status and customer capabilities.

Customer type – based on factors such as organization size,industry,organizations structure(Centralized or Decentralize).

Buyer Behavior – based on Such as loyalty to supplier,usage pattern and order size.

Situational factor – Such as Urgency of deliver and specific application.

Advantages of Segmentation

-Organization is focused toward relative segments.

-Less marketing expense.

-Selecting proper segments result in high profits.

-Organization closely examine needs and wants of customers.

-Customer satisfaction survey is easy to conduct.

-Better customer service can be provided to product users.