Sublime

Good market segmentation analysis requires good empirical data .

The recommendation is to ask all necessary and unique questions, while resisting the temptation to include unnecessary or redundant questions.

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.

suggesting that values, tastes and preferences are more useful because they are more influential in terms of consumers’ buying decisions.

The most common segmentation criteria are geographic, socio-demographic, psychographic and behavioural.

Empirical data for segmentation studies can come from a range of sources: from survey studies; from observations such as scanner data where purchases are recorded and, frequently, are linked to an individual customer’s long-term purchase history via loyalty programs; or from experimental studies. Optimally, data used in segmentation studies should

In this case, the benefits sought represent the segmentation variables.