IndexDefine the marketCreate market segmentsEvaluate the feasibility of proposed market segmentsBuild segment profilesEvaluate the attractiveness of each segment"Developing a nice product in a bad market segment simply does not makes sense." – Dan Adams, that's a lovely quote actually. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay The Market Analysis section of your marketing plan contains information about your target market, competitors, and marketing trends. What is good market segmentation? Good market segmentation research should give your company a clear direction to move forward with an idea of ​​which markets will be best to target. Market research shows that the target should represent a high share of potential profitability for the company. It should also be easy to identify among the research population. If your market segmentation research doesn't meet the above requirements, you're doing it wrong. You will need to reconvene your research team and clearly define their objectives and the information they should gather from their market segmentation research. Bad market segmentation research is a waste of time, money and energy. These segments should be the ones that your competitors don't even know exist (which is very difficult for our competition because the markets are very common like Bahrain). This end goal will improve your marketing efforts and increase your market share and profits. In parallel with market targeting, we should also do customer segmentation. You can identify your target market by asking: First, who are you selling to? Who are your ideal customers? Your target market should be defined in terms of demographics, psychographics, and niche markets (I'll explain them). Demographics refers to the statistical data of a population, including average age, income, and education. Government census data is a common source of demographic information. Using demographic parameters is an effective way to segment your target markets. Think about the types of customers your business caters to. If you have a regional product, perhaps your customers are located in certain cities or states. Your product can be targeted at businesses, individuals, or both. As you brainstorm, you will begin to recognize the different groups that form. Psychographics uses demographic data to determine the attitudes and tastes of a particular segment of a population. Psychographics examines lifestyles: where people vacation, where they shop, how they spend their disposable income, what sports they participate in or watch, what clubs/organizations they join, and more. so here we benefit from Psychographics as they analyze the values, personality traits, interests, attitudes and opinions of your customers. This information helps you build a clearer personality for each of your groups. Is your client independent or does she want to feel included? What do you appreciate? If you're unsure, hiring an outside market research firm to run focus groups or conduct research surveys is a great way to get more information. Contacting a local business school for help is a less expensive option. Niche markets are a small segment of the population that shares common characteristics, interests, spending habits, etc. Successful niche marketing focuses on a small segment of a total market. It's the beststrategy for a small business to achieve a market leadership position. It's expensive and vapid to try to be all things to all people. So, in short, in other words, as I understand it. To carry out a good market segmentation you must collect this data Psychographic: group your customers into cultural clusters, social status, lifestyle and personality type. Decision makers: group your customers based on who decides to buy your product all within the company structure. Behavioral: grouping customers based on product use. For example; light, medium or heavy users. This phase also takes into account brand loyalty and user type. Geographic: Group customers by a specific area, such as regions of the country or state and urban or rural. Distribution: Group customers based on where they go to purchase the product, such as online, in-store, or through a catalog. Demographics: Group customers by age, income level, gender, family size, religion, race, nationality, language, etc. Don't define segments too broadly. This will give you a greater opening to a more narrowly targeted competitor. (a note from Delft Business planner 2016) So we can't choose a whole continent for our product because it's so difficult to compete in such a big place. You have to choose a single country in the first. Scientifically, here are the steps we will follow to implement our market segmentation with a library example (it's so illustrative) Defining the Market The first step in creating market segments is to clearly define the market of interest. As discussed in the Markets, Submarkets, and Product Markets section, it is important not to define a market too broadly. Let's say you want to segment the market for a company that operates a chain of bookstores. It would be too high and cumbersome to define the market as all retail consumers, as this is unlikely to lead to significant segmentation. (an important reminder from the Delft note) As shown here, we need to divide the overall market (retail) into its various submarkets (such as supermarkets) Create market segments Now that we have clearly defined the product/market (which we will call "from this point on), we need to determine what types (segments) of different consumers make up that overall market. To do this, we need to review the list of segmentation bases/variables and choose two or three of those variables that we believe (or know from market research) influence the purchasing behavior of book consumers. For this market, we choose three different variables from the list, as per the table below. These particular segmentation variables were chosen because they can influence book purchasing behavior and, therefore, should lead to the identification of interesting segments. Here five different segments have been created by applying these segmentation variables. In the first phase, a broad demographic breakdown was used (to create the segment of children, young adults and seniors). A behavior variable is then applied to the two segments of adults (whether they like to go shopping or simply get in and out quickly). Remember that there are many ways to segment the same market. Provided that the segmentation variables have some logic, most results should be quite acceptable. Therefore, our five market segments in this example are: ChildrenYoung adults (18-40 years), who like the shopping experienceYoung adults (18-40 years), who are functional/convenience shoppersOlder adults (40+ years) , who enjoys the experience of.