Study Notes for how market segmentation is undertaken

How to segment a market? (Technical aspects) There are two main approaches: cluster analysis (if data is available), otherwise segmentation trees. Cluster analysis Cluster analysis is an analysis designed to categorize objects to a pre-defined number of different groups, with each group being relatively similar on a range of selected attributes. The resultant groups are … Read more…

Study Notes for Business Segmentation Bases

What is a business segmentation base? A business segmentation base is definable characteristics or behavior of organizations that can be utilized to classify the organizations into related groups, for the purpose of target marketing. Main business segmentation bases (with examples) Geographic location/s: Where the business operates. Examples: Countries, regions, spread of operations across areas Business … Read more…

Advantages and limitations of the main market segmentation bases

Geographic Segmentation Base Advantages Considers cultural differences of different regions Good for firms with limited geographic reach needing to select a specific target market Great when there is significant socio-economic diversity and significant consumer behavioral differences across regions Geographic Segmentation Base Limitations Assumes that consumers in a geographic area are similar, which is generally unlikely … Read more…

Quick Study Notes for Market Segmentation

Quick Study Notes for Market segmentation Definition of market segmentation The process of splitting a market into smaller groups with similar product needs or identifiable characteristics, for the purpose of selecting appropriate target markets. What are segmentation bases? A definable characteristic, identity or behavior of an individual consumer that can be utilized to classify consumers … Read more…

Quick Study Notes for STP in Marketing

What is STP in Marketing? STP stands Segmentation, Targeting and Positioning STP is a process where a marketer: Segments an overall market,(segmentation) Evaluates each market segment on a set criteria, Selects the most appropriate target market/s for the firm, Then establishes an appropriate positioning in order to compete in that target market, Which would then … Read more…