Market Segmentation Essay

715 Words2 Pages

Market Segmentation for Beginners

Marketing is a broad category of business knowledge that covers many facets of a company's products and services, but at its foundation is the identification of markets and their subdivisions. These subdivisions or segments form the basis for which all other areas of marketing are dependent. The following is an introduction to what segmented markets are, and why they are important.

It is the starting point for marketing
Market segmentation forms the basis or starting point for all avenues of marketing your company's products or services. This includes branding, product development, distribution, advertising and all other forms of promotion. Of course, the market itself consists of all customers, but not …show more content…

However, you sell a particular type of widget that will appeal mostly to a subdivision of the larger market. For this reason, segmented markets must be identified. Knowing who is most likely interested in your specific widget will enable your company to maximize sales.

Various ways segmented markets can be viewed
There are different ways you can divide up a market. You can divide up your prospective customer base by demographics. This includes such things as gender, age and income. Market segmentation is also done by geography. Certain products may be successful in certain areas of the county or even in specific countries. A market can also be divided by activity. For example, if your product relates to fresh water fishing, you only want to identify the segment of fishing enthusiasts found at rivers and lakes.

The broad area of behavioral psychology
Along with the three market segments listed above, there is a fourth area that is very large. It is often lumped together under the banner of behavioral psychology. Under this large tent of market segmentation, there exists several interesting categories. There are markets that can be identified by social groups, lifestyles, attitudes and opinions. Again, this is a broad area of market segmentation, but what we think and how we live our lives determines, to a large extent, what types of products and services we

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