Customer/User segmentation has been a critical element of the marketing and is one of the most important strategic concepts contributed by the marketing discipline to business firms[14]. User Segmentation is the process of developing effective schemes for categorizing and organizing meaningful groups of customers. A user segment is a group of prospects or customers who are selected from a database based on characteristics they possess or exhibit. It also allows company to differentially treat consumers in different segments. User Profiling is the process of analyzing the customers of each segment in order to generalize, describe or name this set of customers based on common characteristics. It is the process of understanding and labeling a set of users. It provides valuable information about users/customers so marketers can furnish stronger, more targeted offers and each user segment is the target group of users.
One-to-one marketing is the ideal marketing strategy, in which every marketing campaign or product is optimally targeted for each individual customer; but this is not always possible. Thus, segmentation is required to distinguish similar users and put them together in a segment. Doubtlessly using segmentation to understand user’s needs is much easier, faster and more economical than uniquely investing to understand them particularly[9].
With proper market segmentation, enterprises can arrange the right products, services and resources to each target user cluster and build a close relationship with them. Market segmentation has consequently been regarded as one of the most critical elements in achieving successful modern marketing and customer relationship management.
Click stream data is a sequence of Uniform R...
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[14] Shina H.W, Sohnb S.Y., “Segmentation Of Stock Trading Customers According To Potential Value”,Expert Systems With Applications, Vol. 27,pp; 27–33, 2004
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Figure out the typical customers is the first marketing strategy. Business should find the right customers who would by your product and tailor and focus its marketing effort toward them. Thus, this target market represents the group of customer offering greatest opportunity.
Market segmentation can be defined as the process of subdividing and defining a large homogenous market into a clearly noticeable segments
Segmentation is a procedure of splitting up the market into different groups of consumers who the same common needs and wants. There are different types of segmentation like geographical segmentation, behavioral segmentation, demographic segmentation, lifestyle segmentation. Lexus divided their vehicles into two categories they four wheel drives and two wheel drives.
“A market segment consists of a group of customers who share a similar set of needs and wants. The marketer’s task is to identify the appropriate number and nature of market segment and decide ...
Segmentation is the process of determining the breakdown of the target market into smaller specific variables that make it easier to evaluate. Gabbott M (2004, p 159) describes the consumer related segmentation variables as being Geodemographic, Psychographic and Behavioural.
Various web-based companies have developed techniques to document their customer’s data, enabling them to provide a more enhanced web experience. One such method called “cookies,” employs Microsoft’s web browser, Internet Explorer. It traces the user’s habits. Cookies are pieces of text stored by the web browser that are sent back and forth every time the user accesses a web page. These can be tracked to follow web surfers’ actions. Cookies are used to store the user’s passwords making your life easier on banking sites and email accounts. Another technique used by popular search engines is to personalize the search results. Search engines such as Google sell the top search results to advertisers and are only paid when the search results are clicked on by users. Therefore, Google tries to produce the most relevant search results for their users with a feature called web history. Web history h...
Many factors should be addressed when defining a target market. These factors include market segmentation, product life cycle, and the four "P's" that make the marketing mix. Market segmentation is the process of dividing a total market into market groups consisting of people who have relatively similar product wants and needs. There are four major segmentation variables: geographic, demographic, psychographic, and behavioral. Geographic segmentation includes world region, country region, city, density, or climate. Demographic segmentation can consist of age, gender, income, occupation, education, race, religion, or nationality. Social class, lifestyle, and personality fall into the psychographic segment. The behavioral segment divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product (Bethel, 2007). Once the market segment is identified, that market can be targeted.
It has been observed since the inception of Marketing that marketers target to only specific market and how they identify such market. There are certain criteria or base they use to identify the consumers who they would be serving to. Customers do have unique requirements satisfaction levels and aspirations. Some customers however are similar with respect to their requirements of goods and services. In such case if their needs are identified and they can be grouped in quantities of a specific size then it can be segmented. Now each customer group have specific expectations and businesses must cater to the needs of the segmented that has been targeted.
Caroline and Jennifer said that ‘Market segmentation is a crucial marketing strategy. Its aim is to identify and delineate market segments or set of buyers which would then become targets for the company’s marketing plans.’ (Tynan and Drayton, 1987) There are many ways to segment the market, such as age, region, environment, psychology and wages (Hall, Jones and Raffo, 2010).
Dickson, P. R., & Ginter, J. L. (1987). Market segmentation, product differentiation, and marketing strategy. Journal of Marketing, 51(2(April 1987)), 1-10. Retrieved from http://www.jstor.org/stable/1251125
Market segmentation means dividing the market into distinct groups that have common needs and will respond similarly to marketing action. Each segment must be unique, have common needs, and respond in a similar manner to marketing efforts. Target market is the group of potential customer that has been selected by business to focus its marketing efforts towards. This is the group the business wants to sell its products/services to. Positioning refers to the image created in the minds of customer of its product or brand. It is a perception created in the minds of the consumer relative to that of its competitors.
According to Kotler et al 2013 market segmentation is defined as dividing a market into smaller segments of buyers with distinct needs, characteristics or behaviours that might require separate marketing strategies or mixes. As per the industry data which we were operating we used different theories to segment the market one of them is STP process. In this method whole market is sub divided into different segments based on three activities these are segmentation, targeting and positioning. From the market information in case study we identified similar groups of consumer under market segmentation activity. For example market E had consumers travelling between mini hub to medium city that had a new and growing market. While targeting the market we identified which group of consumers to aim for instance market D had major university and service sectors. Lastly in the product and brand positioning we created a concept so as to appeal the target market by running as discount airline. One of the approaches for market segmentation according to Kotler et...
Demographically we can segment the market into groups based on age, gender, family- size, income, family life cycle and occupation.
“Internet Usage Statistics - The Internet Big Picture - World Internet Users and Population Stats” available at http://www.internetworldstats.com/stats.htm
The data mining process will use the mapping function which involved the decision tree and also the neural network to develop. It needs the web server and the database server to be constructed in an operating database to record the browsing route of the users. The data mining will use to identify the user’s information and classify them into different classes using decision tree.