Market segmentation Essay -- essays research papers

Market Segmentation This document prepared and presented byBusiness Resource Software, Inc. Market SegmentationThe purpose for segmenting a market is to allot your marketing/sales program to focus on the subset of prospects that are "most likely" to buy your offering. If done properly this will jockstrap to insure the highest output for your marketing/sales expenditures. Depending on whether you are selling your offering to single(a) consumers or a business, there are definite differences in what you will catch when defining market segments. Category of NeedThe first thing you can establish is a category of need that your offering satisfies. The following classifications may help.For businesses strategic - your offering is in some way important to the enterprise mission, objectives and operational oversight. For example, a service that helped evaluate capital investment opportunities would fall into this domain of influence. The purchase decision for this category of o ffering will be made by the prospects top aim executive management. Operations - your offering affects the general operating policies and procedures. Examples business leader be, an employee insurance plan or a corporate wide communications system. This purchase decision will be made by the prospects top level operations management. Functional - your offering deals with a specific function within the enterprise such(prenominal) as data processing, accounting, human resources, plant maintenance, engineering design, manufacturing, stocktaking control, etc. This is the most likely domain for a product or service, and you must recognize that the other domains may also get abstruse if the purchase of the product or service becomes a high profile decision. This purchase decision will be made by the prospects functional management.For the individual consumer Social Esteem or Pleasure - your offering satisfies a purely emotional need in the consumer. Examples are a mink coat or a diamo nd ring. There are some products that are on the boundary between this category and the Functional category such as a Rolex watch (a Timex would satisfy the functional requirement and probably keep time just as well). Functional - your offering meets a functional requirement of the consumer such as a broom, breakfast cereal or lawnmower.Segmentation of NeedsThen you should establis... ...ularly concerned with keeping employees informed and educated, so educational offerings are non of great interest. Strongly influenced by offerings that most closely deliver the end results desired, even if they are not the most cost useful.Self Helpers - consistently defines/designs solutions to their problems, likes to acquire tools that help in the innovation process. Will unremarkably check new products/services, but the related concept must have been proven to be effective. Often consider just because they use a certain technology that is relevant to the development program they have under way. Will always want to review competitive offerings, but will usually choose the one offering the most effective do it yourself features. Usually consider themselves technically competent and will expect very effective use of proven technology. Not especially inclined toward technically complex offerings, would rather have user friendly, but thought provoking, offerings. Conversion costs usually not a major concern if offering promises potential for innovation. Usually concerned with keeping employees informed and educated, so educational offerings are of interest.