The market segmentation

Market subdivisionation is the process of separateing food commercializes and wherefore dividing those commercializes into groups. The groups constitute of characteristics that argon alike and they comport similar w be necessitate. The groups back excessivelyth consist of hatful or organizations.A grocery place consists of people or organizations that get down similar rents of a harvest-festival, hand the ability, willingness and authority to purchase products. There argon two types of merchandises the ownr market and the organizational or business sector market. The conception of the consumer market is to supply goods and work to the nodes for their admit benefit and non for sale. The organizational or business markets ar markets that are business oriented practic all in ally(prenominal) as the products in the markets are usually sold wherefore the businessmen sell them for a profit.The dying behind the dividing the market is to identify groups o f clients who have similar tastes and preferences, to understand the customers manner so that the right kind of goods are delivered to them and to regard that the right merchandise st putgies are identify so as to ensure that the antithetical preferences chosen to satisfy the needs of the customers If a product female genitalia be from a particular company whose salute of advertizing is low and then it commode be in a position to throw out sales of a company since the monetary value of maintaining it is low and their returns tail increase with time..Successful market instalmentation is one that has the following characteristics segment members that are internally the compar subject and externally different or heterogeneous.The market bay window be divide establish on whether it is a consumer market or an diligence or business market. In the customer market the al-Qaida of segmentation is based on variables much(prenominal)(prenominal) as the geographical, demogra phic, and psychographic and the behavioristic variables. The psychographic segmentation is a segmentation that is apply to describe the customers in name of their activities, opinions, emotions, values, motivations and lifestyles.These enables the producers of the products to drive in which product are beneficial to the customers in terms of their preferences and tastes. The application of this segmentation enables the manufactures to meliorate on their mode of developing their products, marker positioning, signaling and advert so that the sales al-Quran of the product can increase and this can result in greater returns for the company.The demographic segmentation involves classifying people who come from the same geographic boundaries and those who possess the same purposes for example in a banking constancy the interpolation of automatic teller machines can erect efficiency in the business because it can enable the customers to access cash speedily and to enable the m complete transactions promptly since the machine is located in a place where customers are numerous hence the service delivery process is in effect(p) for this customers.Geographical segmentation refers to dividing segments based on their persona of the world, country size and density of the area. In the rural areas we have products such(prenominal) as the farming equipment and material because they are broadly speaking used there while the urban centers consists of products that have been produced and manufactured and are pitch for role since the residents there do non have land to cultivate products for consumption for themselves and for their children.The market can be segmented in the industrial market victimization the following variables Location, company type and the behavioural characteristics.In case of the location variable the businessmen consider this factor seriously because the outdistance between where the source of the product is make and the market can be in addition big such that the greet of theodolite can be too senior eminent school for the businessmen to afford and gum olibanum have the market to be unprofitable thus this issue should be addressed so that it can be eliminated in the future. .In case of company type segment the customers can be classified according to the company size, industry, decision-making and the purchase criteria. The customers can prefer a commodity based on how sound the product has been in the market and whether the industry in which it is produced is known because customers tend to buy out a product, which has been in the market for a long time. (Steenkamp and Ter Hofstede 2002)The behavioral characteristics in the industrial market are usage rate means the frequency in which a product is consumed if it is high school it means that its necessity is high thus it supply is promising to be high for example goods such as the consumables such as salt ,sugar there is a likelihood of being demand many times because people cannot stay without them, get status that is customers who regularly consume a product can make the repoint market to perform effectively because of their organic structure in purchase their products.The procedure of purchasing the product is also determined such as the sealed bids or negotiated procedure. In the sealed bid procedures customers purchase a product based on the determine tags of the product this type of segmentation is consequential to consider since it enables the produce to always have adequate stock of the product so as to avoid stock outs.The criteria that are used in identifying a market segment is that it moldinessiness be diagnosable that is a customer must be in a position to actualise the segment that is appropriate for them since customers tend to consume a product on the basis of how they have the product in the market and its quality. It must be accessible that is the segment must be within the get ahead of the customers thus the communication and distribution take must be improved so that the product reaches the customers within the given flow rate of time that the marketers must advertise their products so that customers can be made aware(p) of the existence of the product..The segments must be literal that is they must be large adequate so that the resources that are used to utilize them to the customers are cost effective that is the cost of product should not be too costly that is the cost of product should not be too large as compared to the revenue that is derived from them. The marketing needs must be unique so that they can be in position to entrance a wider market so that customer can be able to modification to the new differentiate in the market and thus increase the sales volume. The segments must be stable so that the cost of maintaining the product is not too high than the returns that are derived from it.Industrial market segmentation is a segmentation that is used in dire cting the industrial and business customers in their decision-making strategies. The goal of these segmentation is to identify the customers in terms of whether they are potential customers so that their behavior can be identified so as to enable the marketers to identify the burning(prenominal) issues that come upon them directly .The factors that can affect them are the prices, programs or solutions that can enable the company to increase their returns within a given period of time.( Haas, R.W. and Wotruba, T.R. 1983).Targeting refers to process of identifying segments that need to be addressed. The companies tend to choose few segments and to downplay other segment because their come in is to look for segments that produce as much returns to the company as possible. The target market involves people such as the end user companies procurement managers, company houses undertake companies and the external sales agents.Target audience involves individuals that lick the purchasi ng decision but they do not buy the product such individuals involves design engineers, architects, project managers, and the operational managers. The target markets can be identified by looking at customers who have similar needs so that the produces can canalise their efforts to products that are beneficial to the customers and they suit their tastes and preferences.Positioning involves advertising the product value to customers so as to increase the products sales volume. Positions are depict using various variables and using parameters that are essential to a customer. The customers position a product in relation to the brand or product that is within their reach. therefrom it is important for the marketers to conduct a interrogation about how the customers rate different products and their marketing variables so that they can increase their sales volume. The markers need to improve on their marketing variables so that they can improve on their marketing strategies because the customers can determine the victory of the business. The marketers should set up strategies which are gear to having a portfolio that can ensure that their product compete with.Positioning involves how people perceive a product that is in the market. The products or services provide a map that enables the marketers to identify which characteristics can be compared and contrasted to another product that is competing with it so as to put in place mechanisms that will enable them to compete effectively with their rivals.Market segmentation is therefore essential because it enables markets of different sizes to compete effectively since markets are divided based on their segments thus the small companies can be able to compete with the bigger companies since their scale of labor is limited due to their size and the shelves where goods are displayed can not be in a position to accommodate all kinds of goods unlike the big companies whose economies of scale is high due to their siz e.REFERENCESApproaches, (1980) Marketing Science Institute, functional Paper 80-105 Cambridge,Mass.Haas, R.W. and Wotruba, T.R. (1983). Marketing Management Concepts, PracticeAnd Cases. Pleno, Texas channel Publications, Inc.Kotler, P. (1976) Marketing Management (3rd. Ed.). New tee shirt Prentice Hall.McKenna, R. (1988) Marketing in the geezerhood of Diversity, Harvard Business Review,Vol 66, September-October.Pine, J. (1993) Mass Customizing Products and run, Planning Review, Vol 22, July-August,Steenkamp and Ter Hofstede (2002)International Market part issues andPerspectives, Interns of Market seek Vol19, 185-285Wedel, Michael and Wagner A.Kamakura (2000) Market Segmentation Conceptual andMethodological Foundations capital of The Netherlands Kluwer