Satisfying the consumer’s need is not an easy task. It is one of the biggest challenges before manufacturers to design and develop a product that satisfies the expectations of the consumer group. To meet the expectations of the clients now manufacturing companies are designing a different variation of products for different consumer groups. The practice of market segmentation is dividing the total market into different parts. Market segmentation is the process of dividing the market into a smaller part for easy and effective marketing. The process of marketing segmentation helps the organization in fulfilling the different needs of a different section.
No matter if a company deals in home appliance manufacturing, AC manufacturers or in cosmetics, a marketing segmentation could help in targeting the right consumer class for a particular product.
Each person looks for certain qualities in a particular product and if the product meets customer’s expectation it becomes a choice of the customer.
Segmentation involves finding out what kinds of consumers with different needs exist. In cosmetic world people look for different products for different needs. Few want a cream to cover fine lines and wrinkle whereas few want fairness cream for flawless complexion. The diversity in consumer’s choice makes it difficult for the manufacturer to design perfect products for all the people. To remain at the top manufacturing firms are concentrating on meeting the need of a particular group by designing a specific product for their needs.
Markets consist of buyers and buyers differ in one or more respects. They may differ in their wants, resources, geographical locations, buying attitudes and buying practices. Any of these variables can be used to segment a market.
The process of market segmentation plays crucial role in designing marketing strategy. Companies are spending good amount of time in interpreting available market data and dividing market segment. Market segmentation helps in targeting right consumer group for a particular product. Market segmentation is based on several factors:
- Family size
- Family life cycle
- Social standards
Marketing segmentations are mainly based on above mentioned factors, there are many more other factors but these are the major factors that are considered while segmenting the consumer group in different sections. Of these entire factors demographic factor is one of the most crucial factors in marketing segmentation. The requirement of particular products is largely decided by the demographic condition of that place.
Distribution segmentation is another very effective technique to sharpen the edge of marketing. Different markets can be reached through different channels of distribution.
One cannot deny the consumer’s behavior psychology while segmenting the market. A consumer’s behavior characteristic includes several features like product rates, brand loyalty, involvement with the product. Company marketing departments usually try to distinguish between heavy, medium and light users, whom they can then target with advertising.
The consumer market is also segmented on the basis of psychographic characteristics of the clients. It includes consumer’s interest, activities, value, attitude, opinion. Media channels, manufacturers, magazines all design their marketing campaign suiting consumer’s psychographic characteristics. Polling is one of the effective methods to know about the consumer’s psychological characteristics. Opinions and attitudes can be both specific and general. Manufacturers launch a product keeping in mind consumer’s desire and expectation or the company will fail in its endeavor. To be successful in the market it is important to assess all the aspects of the consumer’s expectation and design a perfect product to catch the attention and meet the expectation of the consumer group. Target your marketing group, know their psychographic characteristics.
The concept of marketing segmentation is getting popular among the marketing experts as it helps experts in concentrating on the targeted market and promise more benefits to the manufacturers. Marketing segmentation helps in developing and designing better products.
The tough competition and trend of globalization has made it necessary for the manufacturers to pay attention to different market segmentation and plan a marketing strategy accordingly for higher sales and capture bigger sections of the market.
For white goods and household appliances after sales service and exchange service may play a dominant role in attracting or retaining customers. This may also result in word of mouth advertisement and may result in more sales.