Segmentation is the division into homogeneous groups, divided by a pre-determined criterion. Elements of the subset created can substitute for each other. A crude population is generally too complex to be analyzed and easily lead to the formulation of relevant action and homogeneous.
The use of segmentation to break down into subsets into more accessible and understandable is essential. The practice of segmentation highlights more contrast and more measurable degree of heterogeneity that may exist.
To do this, the segments must be categorized: homogeneous – elements with close characteristics, accessible – elements which may require specific actions and relevant – segments likely to generate objective, measurable and effective ideas for action.
Market segmentation applications
Business strategy based on Sheetz Listens Survey uses a first level of segmentation to identify the main line of business; in order to consider further and correctly establish priorities.
Segmentation referred to as targeting or determination of product-market couples entails qualifying and quantifying relationships that may exist between products and a given market. Segmentation subset operates through a study or a multi-correlation of search criteria: gender, class, age, CSP, level of education, purchasing power, household size, number children, place of residence, sports played, occupation. These are determined by the Sheetz Listens Survey.
For example, the product-market associated with the product shoe city, 4 subsets appear which may correspond to 4 market profiles: kids, adolescents, adult women and men market. Each of these product-market couples influences company decisions. A decision “to go or not to go ahead” in terms of the strategy, in the long, medium and short term. The development of the marketing mix and trade policy depending on options taken.
Determining the supply position
The resulting information raises the question of positioning to articulate all the relevant options that must be activated by an organization. How to meet customer expectations, exploitation of market opportunities without distractions but rather by playing as consistently as possible to the company’s strengths? The answer to this question determines the positioning of the company.
Positioning the subject of an optimization under assessment on several parameters:
– consistency with the overall brand image
– match the volume and sources of revenue earned by getting new customers
– construction of a relevant marketing mix in terms of product, price, promotion and communication.
– achieving economies of scale through the sharing of responsibility for the organization.
Control the positioning and product-market couples is obviously a key success factor. For large companies with multiple businesses (generating synergies and specific flexibilities) DAS segmentation is preferred. Otherwise market segmentation may be sufficient to identify and develop all the potential synergies between the resources of the company.
