According to the ratio, segmentation is defined as follows: by the circumstances of application, on the basis of benefits, on the basis of user status, on the basis of consumption intensity, on the basis of the degree of loyalty, on the basis of the stage of readiness of the buyer to make a purchase.
Segmentation by circumstances of application - division of the market into groups according to the circumstances, reasons for the idea, purchase or use of the product.
Benefit-based segmentation is the division of the market into groups according to the benefits, benefits sought by the consumer in the product. The status of a user characterizes the degree of regularity of use of a product by its users, which is divided into non-users, former users, potential users, novice users and regular users.
Consumption intensity is an indicator on the basis of which markets are segmented into groups of weak, moderate and active consumers of certain products. It is obvious that it is more profitable to serve one market segment consisting of a significant number of active consumers than several small segments of weak consumers.
The degree of loyalty characterizes the degree of loyalty, consumer loyalty to a particular product brand, usually measured by the number of repeat purchases of the product of the brand.
Customer readiness stage is a characteristic according to which customers are classified into those who are unaware and aware of the product, those who are interested in it and those who are willing to buy it.
When segmentation of the market for industrial and technical products is carried out, the following criteria are used in the first place:
*Geographical location;
*Type of organization purchasing the goods: size of purchases;
*Directions of use of purchased goods.
Segmentation can also be carried out when several criteria are consistently applied. It is important that segments are not too small and not commercially unfavourable.
Requirements for effective segmentation. There are undoubtedly many ways to segregate the market - but not all of them are effective. For example, table salt consumers can be divided into brunettes and blondes. But hair color does not affect the volume of demand for salt in any way. It means that if consumers buy salt every month at the same price and, presumably, of the same quality, segmentation of this market will not bring tangible benefits. To be useful, market segments must meet the following characteristics:
Measurable - the extent to which the size and purchasing power of the market can be measured. It is almost impossible to determine the number of left-handed people - no statistical collections indicate it. Normally, companies' data bases do not contain such indexes either.
Availability - the extent to which the market can be reached and provided with the necessary quantity of products.
Reality - the degree of profitability and size of the segment. The firm should focus its marketing strategy on the largest homogeneous group of consumers.
Efficiency - the extent to which an effective marketing program can be used to attract consumers.
It is possible to allocate some base methods of segmentation. The most important of them is the cluster analysis of consumers (taxonomy). Consumer clusters are formed by uniting into a group of those who give similar answers to the questions asked. Buyers can be united into a cluster. The similarity between buyers is based on different measures, but often as a measure of similarity a weighted square of differences between the answers of buyers to the question is used. The output of clustering algorithms can be hierarchical trees or clustering of consumers into groups. There is a fairly large number of cluster algorithms. For example, in the U.S., a widespread cluster analysis of systems called PRIZM, which begins clustering, reducing the set of 1000 possible socio-demographic indicators. Consumer segmentation based on cluster analysis is a classic method. At the same time, there are methods of market segmentation based on the so-called product segmentation or market segmentation by product parameters. It is especially important when producing and selling new products. Segmentation by product, based on the study of long-term trends in the market, acquires special importance.
Continuation follows.