Market segmentation

Research is the basic tool of marketing. A marketer must determine what customer needs are. Marketing expects have developed techniques for determining the needs of prospective customers. It’s done by way of market segmentation.

How can market segmentation be of help to a manager who wants to develop a new product? Every market can be divided into segments or, in other words, into separate groups of consumers. First there are demographic factors like age, income, educational background, occupation, size of family, type of home and neighborhood etc. Then there are psychographic factors – the customers’ opinions and interests, hobbies, sports etc.

Then a product is compared with the goods already established in the market by quality and quantity standards. To be a success you must be ahead of your competitors. Competition never stops. That’s why market segmentation must never stop as well. It should be on a permanent basis. Introduction of a pioneer product can immediately change the composition and number of a consumer grouping. Innovating more effectively at home means finding more to export abroad, more to sell to the West, more hard currency to earn, more jobs to create and a more powerful industrial complex to build.

The fundamental principles for a marketer are:

1. understand the customer (through research);

2. understand the grouping (to which the customer or his business belongs);

3. create a choice (a difference in price, concept or value that will distinguish your product);

4. communicate that choice (through promotion and advertising);

Consumer marketing should be based on understanding consumer values, wants and needs.

Market segmentation – сегментация рынка

Tool – инструмент

Marketer – сбытовик

To determine – определять

Prospective – предполагаемый

Income - доход