What are the 5 primary steps of segmentation?

What are the 5 primary steps of segmentation?

The process of market segmentation consists of 5 steps: 1) group potential buyers into segments; 2) group products into categories; 3) develop market-product grid and estimate market sizes; 4) select target markets; and 5) take marketing actions to reach target markets.

What are the 6 requirements for effective segmentation?

Regardless of your approach, a useful segmentation should include these six characteristics:

• Identifiable. You should be able to identify customers in each segment and measure their characteristics, like demographics or usage behavior.
• Substantial.
• Accessible.
• Stable.
• Differentiable.
• Actionable.

What are the 4 basic criteria for segmenting a market?

For example, the four types of segmentation are Demographic, Psychographic Geographic, and Behavioral. These are common examples of how businesses can segment their market by gender, age, lifestyle etc.

Which is the best study guide for market segmentation?

Market Segmentation Study Guide. The market segmentation, targeting and positioning (STP) process is a fundamental concept in understanding marketing and the strategies of firms. In most marketing textbooks, the STP approach is presented as a simple three step process.

Which is the next step in the segmentation process?

Once the market has been defined, the next step is to segment the market, using a variety of different segmentation bases/variables in order to construct groups of consumer. In other words, allocate the consumers in the defined market to similar groups (based on market needs, behavior or other characteristics).

Which is an example of a segmentation tree?

Other examples for segmentation trees can be found in how is market segmentation actually undertaken. And please note there is a free Excel template available on this website to allow you to construct a segmentation tree and segment profiles easily from any market research survey data or customer base data that you have access to.

What does it mean to segment a market?

Market segmentation is the process of dividing an overall market (as defined by the firm; please see the section on how to define a market) into sets of consumers that have similar needs or similar characteristics.