market segmentationMarket segmentation is the process of partitioning markets into groups of potential customers with similar needs or characteristics who are likely to exhibit similar purchase behavior.

Market segmentation requires a major commitment by management to customer-oriented planning, research, implementation and control.

There are four major benefits of market segmentation analysis and strategy:

  • Designing responsive products to meet the needs of the marketplace.
  • Developing effective and cost-efficient promotional tactics & campaigns.
  • Gauging your company’s market position — how your company is perceived by its customers and potential customers relative to the competition.
  • Fine-tuning current marketing strategies

A three-step process is used to develop a market segmentation strategy: 

1. Segment Identification — determining a given number of homogeneous market segments based on selected segmentation variables and criteria. Segments should be customer-focused, a justifiable size, distinguishable, accessible, accountable & profitable.
 
2. Market Selection — selecting one or more groups to target for marketing activity. You must make strategic choices based on customer needs, competitive opportunities, corporate objectives, and your firm’s financial, technical and marketing resources.
 
3. Positioning — carving out a market niche for your firm. This may be accomplished by searching out unique marketing advantages, seeking new market segments that competitors are not cultivating, or developing new approaches to old problems.

The certified professionals of Roe Smithson & Asociados Ltda with expertise in Business and Marketing will be pleased to provide you with our high quality services.

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