What do you understand by the term ‘Market Segmentation’?

Question

marketing:market segmentation

Answer 1

Market segmentation is what you do to divide a market. For example, you have a cereal brand, let's say Scooby Doo, the segment for this brand will be the kids, BUT may be also the mothers, because they are who will buy the product for their kids. But, anyway, the main segment still being the kids. So, when you make a marketing plan, you should define your market segment to focuse your marketing efforts to that point.

Hope this helps you. Good Luck.

Answer 2

Actually, what most of the responses so far are identifying is targeting, not segmentation. Segmentation is the process of taking the total market and breaking it up into smaller groups of customers who share common traits. For example, a car company who decided that family status was an important factor in determining who would buy their cars might break the market down into single people, couples without children, families with one or two children, families with 3 or more children, etc. That
process of finding the appropriate factors to use in breaking down the market into groups is what is known as segmentation. Then, if they decide to sell their product to large families and pick that particular segment as their market, they have used target marketing to reach the large family segment.

I hope I know what I'm talking about because I have both an MBA and a Ph.D. in marketing and have been teaching marketing for almost 3 decades!

Answer 3

I think "market segmentation" occurs when market is divided in two or more groups of people according to certain characteristics (Ex. age, social status, educational achievement, etc.). In marketing this is very helpful, 'cause it's much easier to make a successful marketing strategy when you have determined an "objective audience" where to direct your product.

Answer 4

Market segmentation refers to concentrating on a specific segment of the market, be it an economic segment, age segment, or practicioners of a specific hobby or profession.

Examples:
Old Navy gears its products and advertising to young people.

Nike and Reebok gear their products and advertising to sports fans, whereas Birkenstocks gear their products and advertising to the upper middle class.

Answer 5

market segmentation
Definition

A marketing technique that targets a group of customers with specific characteristics.

Answer 6

It means to concentrate on just one part of the population. For example, selling fashion clothes to young women, you would develop a commercial that appeals to them and them only. That's who you want to look since they will be the buyers.

Answer 7

http://www.decisionanalyst.com/services/MarketSegmentation.asp