Market Segmentation Analysis

Ideal niche segments match the organisational skill set in terms of their needs, are large enough to be profitable, have solid potential for growth, and are not interesting to competitors (Kotler 1994).

A concentrated strategy is attractive for organisations who are resource-poor, but are facing fierce competition in the market.

Once organisational strengths have been established, potential interference by external factors has been assessed, and consumer needs and desires have been thoroughly investigated, two key decisions have to be made as part of the strategic marketing planning process: which consumers to focus on (segmentation and targeting ), and which image of the

The segmentation criterion can be one single consumer characteristic, such as age, gender, country of origin, or stage in the family life cycle. Alternatively, it can contain a larger set of consumer characteristics, such as a number of benefits sought when purchasing a product, a number of activities undertaken when on vacation, values held with r

market segmentation means cutting markets into slices. Ideally, consumers belonging to the same market segments – or sets of buyers (Tynan and Drayton 1987) – are very similar to one another with respect to the consumer characteristics deemed critical by management.

there is a huge benefit in selecting the attractiveness criteria for market segments at this early stage in the process: knowing precisely what it is about market segments that matters to the organisation ensures that all of this information is captured when collecting data (Step 3).

The term segmentation criterion relates to the nature of the information used for market segmentation. It can also relate to one specific construct, such as benefits sought.

The purpose of marketing is to match the genuine needs and desires of consumers with the offers of suppliers particularly suited to satisfy those needs and desires.

The segment must be homogeneous; members of the segment must be similar to one another. The segment must be distinct; members of the segment must be distinctly different from members of other segments. The segment must be large enough; the segment must contain enough consumers to make it worthwhile to spend extra money on customising the marketing