On the marketing process of market segmentation
Abstract: This article from the marketing STP strategy of market segmentation, target market selection, market positioning of the three mutual relations, emphasizing the strategic foundation of the status of market segmentation in the marketing activities.

Keywords: marketing, market segmentation

One, why should the market segmentation

The first is the limited resources of the enterprise. For most industries, in addition to natural monopolies, state monopolies, and a few markets face extremely narrow industry, an enterprise is difficult to meet the market demand, will be subject to corporate resources and capacity constraints. In other words, only to meet the needs of the market on the part of the consumer groups.

Followed by business preferred. Since the Enterprise only to meet part of the consumer groups in the market, then he will be faced with two options: First, without distinction to meet any part of it, is a wide range of marketing from a strategic perspective. As a result, not targeted, the satisfaction of the market groups would not be very high, thus the market competitiveness of enterprises also will not be strong; is to find other resources to match, it is possible to give full play to the characteristics of the enterprises and part of the advantages of market groups, targeted to be met. This may be even the satisfaction of this part of the market groups greatly enhance the core competitiveness of enterprises to give full play. There is no doubt that, as long as possible, businesses will choose the latter.

Once again, the differences in market demand. Whether a company may find such with other groups of market demand, need to be targeted to meet the market groups? Under the influence of various factors, there is a big difference between market consumer groups, so as to constitute a demand of the same market segments. Thus provides a premise for the enterprise in a targeted manner to select its target market.

Second, how to segment the market

(1) how market segmentation is the key to marketing activities. Analyze some segmentation variables for consumer markets, is the general approach of market segmentation.

(1) Geographic segmentation. The market is divided into different geographical area units. Including the Intercontinental, country, regional administrative provinces and cities, urban and rural areas, climatic conditions and other geographical environment, a series of specific variables.

(2) cultural segments. Humanities and consumer market segments according to market Humanities variable market segmentation based on age, gender, family size, family life cycle, social class, income, occupation, education, religion, nationality, divided into different consumer groups.

(3) mental breakdown. Consumers of psychological factors on the consumers themselves deeper level factors, including the consumer's lifestyle, personality and other psychological variables. Sometimes, in the same human groups, may show very different psychological characteristics.

(4) behavioral segments. Behavioral segmentation refers to the habits and consumer buying behavior-related variables, including the purchase of the timing and frequency, the pursuit of the interests of the situation and consumers' brand loyalty, and they are divided into different groups.

Industrial market segments, its main features:

(1) the end-user requirements. End-user requirements breakdown of industrial market is a common method. In the industrial market, the interests pursued by the different end-users value different aspects of the same kind of product attributes.

(2) customer size. Customer scale to determine the size of the customer demand for the company's products, which is an important variable of industry segments the market, many companies set up a special service system for users of different sizes, respectively, in order to better adapt to characteristics of the species of the size of the user.

(3) the customer's geographic distribution. The geographical distribution of industrial users is often a country's distribution of resources, topography, climate and economic layout constraints.

(2) the implementation of market segmentation steps.

(1) The first market segment. The market can be broken down, but said the main market is a demand. Demand from infants to the elderly, but can not adapt to all of the same product. A product suitable for the age of the population, the population of this age is called the overall population segments. Some products are suitable for the age segment, some products from the gender segmentation, but also some from the economic ability to segment. Market segment and market segmentation, the segment is a segment of a large market crowd, also known as market segmentation. It can use a product category to the corresponding, corresponding to different age groups, men, women can be mapped. Men and women, from the age corresponding to young women, young men, or middle-aged women, middle-aged men, in short, with a large product categories correspond to market a class of people called market segmentation.

(2) to determine market segments based on preliminary market segments. Market segment, the segment of the population broken down. How segmentation? Products on the basis of common interests with personality interests, personalized point of interest, and then for the people of this age different personality characteristics are required to be broken down.

(3) preliminary survey of the market segments and market trends of analysis. Due to market competition, a more detailed breakdown of the subdivision conditions. Do the breakdown products must be considered when this market is mature and immature. The market is not mature to a certain extent, when not broken down.

Decides that the effective assessment and important consideration of the market segments

(1) the effective assessment of the macro. Can be distinguished in some standard clear after the breakdown of the various sub-market example, the level of demand and purchasing power levels can be measured, and a significant difference with the other sub-markets. Can be sub-market accessibility in some standard subdivision marketing convergence body the ability to reach consumers have access to the company's products and marketing efforts. Can enter the strong competitors of the other meaning is that the market does not exist, allowing companies to enter this market is relatively easy. The various sub-markets in the profitability of some standard subdivision has sufficient potential demand to enable businesses to be profitable, to achieve its profit targets.

(2) determine the market segments important consideration. a: the amount of the potential market segments. First of all, market segments should have a large enough amount of demand potential. Only conducive to the development potential amount of scale is an attractive market segments. Secondly, it is necessary to correctly estimate and evaluation of the potential amount of a market demand can not be ignored consumers (users) number and their purchasing power in any one of these two factors. b: the state of competition in the market segments. Competitive position in the market may be occupied by one of the main aspects of evaluating each market segment. Strength of competitors, the strength of it or not, the status of the potential competitors, whether new competitors can easily enter the market segments, in short, competition is strong, on a large number of degrees of freedom for the choice of market segments, and vice versa , subject to the constraints of high c: characteristics and enterprise market segments with the general objectives and resource advantages of the degree of agreement. The fundamental purpose of enterprise market segmentation is to find their own resources to achieve the best combination of market demand. Enterprise resource advantages in its financial strength, technology development capability, scale of production, management capacity, traffic location. Now that is an advantage, must be better than competitors. Consumer demand characteristics, such as the promotion of enterprise resource advantages into play is the opportunity, otherwise, there will be duplication of efforts of the enterprise is a waste of resources, serious, or even a great loss. d: the return on investment of market segments. Enterprises are concerned about the level of profitability of market segments. The high rate of return on investment companies are looking for the correct estimation and evaluation must be made on the return on the investment capacity of the market segments.

The concept of market segmentation, segmentation and integration of dialectical thinking in marketing campaigns, how effective segmentation of the market is always worthy of the priority areas. Often there is the phenomenon of polarization in the process of market segmentation. Too single market segments, such as has not defined the scope of market segmentation, in their daily lives, we often hear this kind of high on: "all over the country are the enterprise market, to all our potential users essentially all of the market as the market, not market segments. Or only the product, geographic factors, demographic factors as a standard for market segmentation. Another situation that is too complex market segmentation performance, if the enterprise in order to more accurately find their target market, market segmentation, blindly emphasized the need to adopt a variety of segmentation variables, and everyone knows, the market segmentation too small, on the one hand, will result in market fragmentation, will give the future market management of the enterprise to bring many unexpected difficulties; the other hand, the sub-market segments after too much will give enterprises the choice of the target market a tremendous difficulties, once mistakes, companies are easy to miss some good marketing opportunity.

Third, the significance of market segmentation and the important position

A market segmentation can help companies and profound understanding of the market. Subdivided according to different standards, different angles, complex market separately, and then put together. Both a clear understanding of each part to understand the link between the parts. On the basis of market segmentation, the market as a whole has been both clear and comprehensive grasp. The enterprise can be a detailed analysis of each segment level needs to meet the situation, find the appropriate market opportunities.

Two market segments to help companies find the best market opportunities. The use of market segmentation will be able to timely and accurately to find their own market opportunities. Because consumer demand is not exhaustive, there will always be unmet needs. Good at market segmentation, market demand can always find the gap. Sometimes, a unique market segments for companies to create a new market.

Three market segments will help determine the operating direction, targeted marketing activities. Carefully selected to meet that part of the market, the advantages of enterprise resources to play an important role is crucial. Through market segmentation, market to be unbundled, careful analysis, the timely detection of the competitive dynamics, to avoid an excessive concentration of production and operation of some kind of best-selling products, and competition in a mass melee. Can choose the ideal customer base for enterprise resource range has the potential to meet the target, targeted marketing activities, focus on the use of human, material and financial resources, limited resources wisely, and thus, the least amount of operating expenses to achieve maximum operating results.

Four market segments of particular importance for small businesses. Production capacity and competitive strength of small businesses is much smaller, they are in the market as a whole or large segments of the market can not establish their own advantage. With market segmentation, small businesses can find some unmet needs, these needs may be ignored by the large enterprises, perhaps the very particularity of large enterprises do not bother to go to whom special arrangements for the marketing power. In either case, as long as the power of small businesses will be able to exploit any tiny opening, Strategic decisions, build strong market position to become the expert of this small market segments. Small businesses can also play a "small boat U-turn fast" advantage, and constantly looking for new market niches in the increasingly fierce competition for survival and development.