market segmentation
Involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.
Market segmentation is the process of dividing a larger market into smaller groups of consumers who have similar characteristics and needs. The objective of market segmentation is to identify the most profitable segments of the market and to develop marketing strategies aimed at meeting the specific needs of each segment.
There are several ways to segment a market, such as:
1. Demographic segmentation: This involves dividing the market based on characteristics such as age, gender, income, education, occupation, etc.
2. Geographic segmentation: This involves dividing the market based on geographical location, such as region, country, city, etc.
3. Psychographic segmentation: This involves dividing the market based on lifestyle, personality, values, interests, behavior, etc.
4. Behavioral segmentation: This involves dividing the market based on buying behavior or product usage, such as frequency of purchase, loyalty, product benefits, etc.
By segmenting the market, businesses can tailor their products, services, and marketing messages to meet the specific needs of each segment, creating a more loyal customer base and increasing sales and profitability in the long run.
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