What is Market Segmentation

1.

The process of dividing potential consumers into groups based on different characteristics. Learn more in: The Social Marketing Campaign by Greenpeace Mediterranean Against Broiler Chicken Consumption

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Identifying groups of similar customers at the market for facilitating adequately approaching them. Learn more in: Consumer Shopping Orientations and Online Purchases of Rural Tourism Services

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Market segmentation is a central concept in marketing theory and practice, and involves identifying homogeneous sub-groups of buyers within a heterogeneous market. It is most commonly conducted using cluster analysis of the measured demographic or psychographic characteristics of consumers. Forming groups that are homogenous with respect to these measured characteristics segments the market. Learn more in: Cluster Analysis Using Rough Clustering and K-Means Clustering

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The process of classifying a collection of consumers into distinct sub-groups (segments) that behave in similar manners, share the same characteristics, or have similar needs. Learn more in: Mobile Telephony as a Universal Service

5.

Segmentation offers a way to look at your customers, grouping them by demographic, geographic, psychographic, or other means. Often a company is successful when they view their customers (or potential customers) through a different lens. Learn more in: Battle for Value: Wargaming for Business, Non-Profit, and Government Strategy Development

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A marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs (and/or common desires) as well as common applications for the relevant goods and services. Learn more in: Revenue Management in the Hotel Industry

7.

A central concept in marketing theory and practice; involves identifying homogeneous sub-groups of buyers within a heterogeneous market. It is most commonly conducted using cluster analysis of the measured demographic or psychographic characteristics of consumers. Forming groups that are homogenous with respect to these measured characteristics segments the market. Learn more in: Cluster Analysis Using Rough Clustering and k-Means Clustering

8.

The process of identifying a group of present or potential customers according to a set of characteristics which are relevant to a supplier’s marketing stimuli.” Learn more in: Inside the Small Island Economies: Loyalty Strategies in the Telecommunications Sector

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The approach of dividing a holistic market into specific segments according to determined criteria. Diverse forms of market segmentation are distinguished, either segmenting according to customers (e.g., geographic location or demographic characteristics), to companies or to industries. Learn more in: The Luxury Market in the Fashion Industry: A Conceptual Segmentation