The Process Of Market Segmentation

Marketing segmentation is the process in which a large market is broken down into simple segments that have similar needs or demand characteristics for designing the marketing strategy to meets the expectations of a particular segment (Wedel, 2000). Most companies cannot meet the needs of the whole market; therefore, the companies are forced to subdivide the market into segments and target the segments that they can handle (Wedel, 2000). In order to do market segmentation, data such as age, income, gender, town of residence, and marital status may be required. This data is then analyzed to allow for targeted marketing to the potential customer.

Market Segmentation

It is not possible for companies to meet the needs of all the consumers in a

Certain people are more interested in a particular product than others are. Even the interested people will buy a certain product in different quantities. The interest of some consumers may vary with price while others may not. Therefore, it is important for the marketer to single out these classes of different types of consumers; this is the market segmentation process. Marketers need to identify the groups of consumers with similar needs so that they can tailor their marketing strategies towards them. This helps to save on the limited marketing budget (Steenkamp & Ter Hofstede, 2002). In addition, by tailoring the marketing strategies to a particular group, the marketer is likely to get more satisfied customers. This will help the organization gain a great advantage over its competitors (Allenby, Fennell, Bemmaor, Bhargava, Christen, Dawley, & Yang,

The questionnaire will be administered among the sampled 100 customers. It will contain both open ended and closed questions. The questionnaire will be structured into three sections. The first section will be an introduction that will brief the study participants on the study purpose and encourage them to answer the survey questions truthfully. The second section will focus on the participants’ demographics such as age, income, gender, family life cycle, and their purchasing behavior. The third section of the questionnaire will contain questions focusing on the consumer preferences when they buy products from the