Market Segment

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Market Segment is a subgroup of people, who share singular or plural similar features which make them have similar product wants. In other words a Market Segment is a procedure which distinguishes the market into various segments that have the same need or behave in a similar pattern. As each subset is quite homogeneous in their demands and needs, there are huge chances that they would respond in the same way to a particular marketing strategy.

There can generally be two divisions in a market:

  • Public or Industrial Sector
  • Private SectorThere are many other divisions such as the small Market Segments which are often termed as Specialty Market or Niche Market. Though all the Market Segments normally come under industrial or consumer markets. The procedure of industrial Market Segment is very much different with consumer Market Segment in spite of having various similar objective and overlappings.

    The Market Segmentation process is different from positioning and targeting. The main intention in Market Segment is to bring out groups of similar consumers, to divide them in terms of priority, to examine their behavior and then to react with suitable marketing strategies which would satisfy the wants of various chosen Market Segments.

    Effect of Good Market Segment

    If a Market Segment is conducted properly it can improve upon the marketing effectiveness, it also can provide right lists and the advertising results can be improved upon and all these would result in increasing customer satisfaction.

    There are various requirements for a good Market Requirement:

  • Similarity within the Market Segmentation
  • Heterogeneousness amongst Market Segments
  • Market Segments are mensurable and acknowledgeable
  • Market Segment has to be large enough to be profitable

    These things can also be summarized by the word DAMAS:

  • D Differential: The Market Segment has to be different with different market mix
  • A Actionable: One needs to have a product to be accrued for this segment
  • M Measurable: Measurement of size and purchasing power can be done
  • A Accessible: The possibility of reaching efficiency must be there
  • S Substantial: The Market Segment has to be enough profitable and large

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