ABSTRACT

Market segmentation analysis is used to identify profitable business opportunities. Segmentation divides markets into subsets of users who share a similar set of characteristics and needs/wants. Segmentation is the process of partitioning markets into groups of potential customers with similar needs and/or characteristics who are likely to exhibit similar purchase behavior. Good prospects can be segmented and targeted into buyers based on segmentation dimensions such as geodemographics, lifestyles, benefits, adopter characteristics and usage patterns. Consumer marketers use geographic, demographic, psychographic and behavioral variables to segment customers based on similar needs and wants that can be satisfied via desirable customer value propositions. Business market segmentation is much more complex, often with limited information available to marketers. Marketing managers must carefully assess customer value considerations when segmenting consumer markets. Segmentation strategy can be a significant competitive differentiator for a company. Segmentation options include differentiation, concentration and personalization.