Market segmentation Essay -- essays research papers

Market Segmentation This document prepared and presented byBusiness resource Software, Inc. Market SegmentationThe purpose for segmenting a market is to allow your merchandise/sales program to focus on the subset of prospects that are " close to presumable" to purchase your fling. If done properly this leave behind help to insure the highest recidivate for your marketing/sales expenditures. Depending on whether you are selling your offering to item-by-item consumers or a business, there are definite differences in what you leave behind sum up when defining market segments. Category of NeedThe first amour you can establish is a socio-economic class of need that your offering satisfies. The adjacent classifications may help.For businesses Strategic - your offering is in whatever way important to the enterprise mission, objectives and operational oversight. For example, a service that helped evaluate capital coronation opportunities would fall into this domain of influence. The purchase decision for this category of offering will be made by the prospects top level executive management. operations - your offering affects the general operating policies and procedures. Examples might be, an employee insurance plan or a corporate wide communications system. This purchase decision will be made by the prospects top level operations management. operational - your offering deals with a specific function within the enterprise much(prenominal) as data processing, accounting, human resources, plant maintenance, engineering design, manufacturing, inventory control, etcetera This is the most likely domain for a product or service, besides you must recognize that the other domains may also get convoluted if the purchase of the product or service becomes a high indite decision. This purchase decision will be made by the prospects available management.For the individual consumer Social Esteem or Pleasure - your offering satisfies a purely emotional n eed in the consumer. Examples are a mink coat or a diamond ring. There are some products that are on the boundary between this category and the Functional category such as a Rolex watch (a Timex would satisfy the functional requisite and probably keep time just as well). Functional - your offering meets a functional requirement of the consumer such as a broom, breakfast cereal or lawnmower.Segmentation of NeedsThen you should establis... ...ularly tendinged with retentiveness employees informed and educated, so educational offerings are not of great interest. potently influenced by offerings that most closely deliver the end results desired, even if they are not the most cost effective.Self Helpers - consistently defines/designs solutions to their problems, likes to acquire tools that help in the innovation process. Will usually consider new products/services, but the cerebrate concept must have been proven to be effective. Often consider just because they use a certain techn ology that is relevant to the nurture program they have underway. Will always want to review warlike offerings, but will usually choose the one offering the most effective do it yourself features. Usually consider themselves technically competent and will need very effective use of proven technology. Not especially attached toward technically complex offerings, would rather have user friendly, but intellection provoking, offerings. Conversion costs usually not a major concern if offering promises potential for innovation. Usually concerned with keeping employees informed and educated, so educational offerings are of interest.