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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“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 ...
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.
Terrell, E. (n.d.). Market Segmentation. (Business Reference Services, Library of Congress). Retrieved April 6, 2014, from http://www.loc.gov/rr/business/marketing/
Segmentation, targeting and positioning are the fundament of modern marketing (Proctor, 2002, p. 188, as cited in Harris and Schaefer, 2015).
There are a range of segmentations that allows a company to target potential customers effectively.
Market segmentation can be defined as the process of subdividing and defining a large homogenous market into a clearly noticeable segments
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.
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...
There is a debate between the benefits and potential informational privacy issues in web-data mining. There are large amount of valuable data on the web, and those data can be retrieved easily by using search engine. When web-data mining techniques are applied on these data, we can get a large number of benefits. Web-data mining techniques are appealing to business companies for several reasons [1]. For example, if a company wants to expand its bu...
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 allows marketers to easily categorise customers in order to identify target markets and products for certain types of customers. Elaborating on this, Pine, Peppers and Rogers (1995) mention that market segmentation is a set of broad characteristics that focus on a group of customers. Furthermore, Kotler (1988) states that segmentation is the act of separating a specific set of customers, that open up markets, with apparent needs, behaviours and characteristics that require specific products. With this being said, marketers use this foundation in order to build and gain more information to target certain markets.
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.
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.
Segmentation is a marketing strategy that involves separating a wide target market into small groups of customers who share the common need of using or purchasing the product that needs to be marketed. Market segmentation strategies are utilized to identify these groups of consumers and strategies are designed and implemented to make the product or service appeal to them. Support and also the product will be strategically placed in order to successfully achieve the ultimate marketing goal. Businesses and organizations may come up with different type of strategies involving different products and catchy phrases depending on the product or the target segment.
Demographically we can segment the market into groups based on age, gender, family- size, income, family life cycle and occupation.