Marketing criteria for products and services has been taken to a new level. This is for the business entity to remain in operation and eliminate stiff competition from its competitors. Most of them tend to use the criteria of market segmentation strategy. This is a technique of subdividing the selling place into different sections usually known as segments. What a marketer needs to know is the best criteria to carry out this process.
These segments are usually with similar characteristics. The people in the respective divisions do have similar needs and wants when it comes to the use of certain commodities produced or services being rendered. Carrying out this process is beneficial because a marketer needs to understand the behavior of their customers thus, finding better ways of fulfilling their wants.
Most times, producers find this target a hard one to achieve. When grouping them into different units, the work of ensuring that they uphold standards in production turns out to be the driving factor to ensure that everything is upheld to the benefit of the clients. The five ways of subdivision include benefit, geographical, demographic, psycho-graphic and behavioral.
Benefit is all about what pleasure consumers derive from the commodity being sold. With this in mind, the marketer will be in a position to determine the best commodities that are suitable in ensuring that these needs are met smoothly. The entire criterion is based on views of the clients and their ease of deriving pleasure from the given product.
On the geographical aspect, it tailors towards setting aside areas depending on their location within the entire selling places. The whole world is seen as the main market. Divisions, therefore, arises in terms of states, neighborhood, climate and age wise demography. With this analysis, it becomes easy to determine that certain products which are influenced by climate have the potential of performing better than others as far as weather conditions are concerned. This can be evident very well in Europe during the periods of summer and winter.
Demographic division is widely refers to a broad study of possible clients. Here, issues of gender, age, nationality, family size, occupation, socioeconomic status, culture, income, education, religion and language spoken are taken into consideration. This classification is purely to determine whether mass marketing can be carried out or a company has to target specific clientele in the promotion process.
Behavioral sub division is another way of dividing the entire markets into portions. This one bases its criteria on what consumer needs and their reaction to them or purchase of the commodities. It is under this technique that issues of brand loyalty to specific brands, things responsible for purchase, cases of regular customers or first timers and readiness in buying have linkages to his or her socioeconomic status.
Psycho-graphic is the final market segmentation strategy. This one tends to answer the question on why people are buying the commodity. The lifestyle of the customers is weighed basing on their translation on consumption rate and purchases of the goods.