Why do we need customer segmentation?
Posted: Tue Jan 28, 2025 8:21 am
Supplier power - if suppliers are highly consolidated and can influence purchasing prices in the industry, the market is also considered unattractive.
Once the attractiveness has been determined, it is necessary to assess the compliance of the segments with the company's long-term strategy and select the number of them to work with.
It is customary to distinguish the following areas:
Coverage of the entire market. The strategy is aimed at covering all buyers and is available to companies like Microsoft, Coca-Cola and the like, which can cover global markets with their products. This approach is based on both differentiated marketing (each segment is offered its own product) and mass marketing (one product is offered to all segments).
Specialization in several segments.
The company selects similar segments and tries to achieve a synergistic effect from working with each. Differentiation vp quality email lists is also possible here: one product is offered to several segments, for example, a microscope is sold to scientific laboratories, institutes and schools, or a line of products for a microscope is sold only to scientific laboratories.
Concentration on one segment. The company finds a niche in the market and directs all efforts to meeting the needs of customers.
Individual marketing and mass customization. The business has a wealth of knowledge about its customers, which allows it to tailor its offering to each customer’s needs. This is an approach for brands with wide product lines that can be customized and also need updating, support, and periodic replacement.
Another option for the business model is product customization based on mass production.
Based on these stages, a company can determine a strategy for each market segment and different approaches to positioning and promotion.
Even within qualitatively defined market segments, there are different customers. They share similar needs and preferences, but their behavior, level of awareness of the product, and phase of interaction with it may differ.
That is why marketers use customer segmentation models. Based on them, businesses solve the following problems:
Managing customer behavior: stimulate additional visits, increase the average bill, switch to purchases of more expensive goods, expand penetration into the category.
Once the attractiveness has been determined, it is necessary to assess the compliance of the segments with the company's long-term strategy and select the number of them to work with.
It is customary to distinguish the following areas:
Coverage of the entire market. The strategy is aimed at covering all buyers and is available to companies like Microsoft, Coca-Cola and the like, which can cover global markets with their products. This approach is based on both differentiated marketing (each segment is offered its own product) and mass marketing (one product is offered to all segments).
Specialization in several segments.
The company selects similar segments and tries to achieve a synergistic effect from working with each. Differentiation vp quality email lists is also possible here: one product is offered to several segments, for example, a microscope is sold to scientific laboratories, institutes and schools, or a line of products for a microscope is sold only to scientific laboratories.
Concentration on one segment. The company finds a niche in the market and directs all efforts to meeting the needs of customers.
Individual marketing and mass customization. The business has a wealth of knowledge about its customers, which allows it to tailor its offering to each customer’s needs. This is an approach for brands with wide product lines that can be customized and also need updating, support, and periodic replacement.
Another option for the business model is product customization based on mass production.
Based on these stages, a company can determine a strategy for each market segment and different approaches to positioning and promotion.
Even within qualitatively defined market segments, there are different customers. They share similar needs and preferences, but their behavior, level of awareness of the product, and phase of interaction with it may differ.
That is why marketers use customer segmentation models. Based on them, businesses solve the following problems:
Managing customer behavior: stimulate additional visits, increase the average bill, switch to purchases of more expensive goods, expand penetration into the category.