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What actions does the company take based on the results of segmentation? Market segment and its objects. Objectives of market segmentation

Market segmentation- division (differentiation) of any market into separate parts (segments) taking into account many criteria and factors.

Market segment- identifying groups of consumers, products or enterprises that have common characteristics. Segment- a market group of buyers with similar needs, desires and capabilities.

On the mass market, with a huge number of buyers, manufacturers do not see the point in developing products to meet the needs of each specific consumer. To simplify, in order to optimize the production program and simplify communication, marketing and sales, the manufacturer identifies groups of buyers with similar needs, views, principles within the group. Consumer groups differ significantly in their requirements for goods, principles and views, methods of purchase and consumption.

In the market of exclusive, expensive goods everything is different. Companies are forced to treat each customer as a separate market. For example, the segment of the market for the production of intercontinental airliners, the market of heavy mining dump trucks involves working with each of the buyers personally. In this case, marketers talk about the extreme degree of market segmentation.

Market segmentation, market segmentation- a strategy of manufacturers and sellers of goods, which consists in dividing the market into separate parts (segments) based on the type of goods sold, territorial location, the type of buyers most represented in a given part of the market, and on social characteristics.

There is no single method of market segmentation. Dividing the market into buyer groups for the purpose of segmentation suggests that each segment may require separate products, and therefore marketing mixes.

Main objects of segmentation:

consumers;
goods and services;
enterprises (competitors)

Segment consumers, depending on the task, it is possible, guided by various principles:

geographic segmentation – segmenting the market into geographic units: states, regions, districts, cities, etc.;
psychographic segmentation - market segmentation based on social class, lifestyle, personality characteristics, everything that shapes and defines our inner self;
gender-age segmentation – market segmentation based on gender, age;
demographic segmentation of the market - segmentation by income level, education, religious beliefs, etc.;
behavioral segmentation - market segmentation depending on the nature of consumption of a product, reaction to this product, purchasing methods, sensitivity to advertising, habits;

Target (base) market- this is the most suitable and profitable group of market segments (or one segment) for the enterprise to which its activities are directed.

Market segment indicators:

Segment capacity – quantitative parameters (boundaries) of the segment, i.e. how many goods and what value can be sold on it, how many actual and potential consumers will need to use what resources to work in this segment.
Internal uniformity – intra-segment similarity of representatives and maximum distinctiveness from representatives from other segments.
Segment availability is an indicator of the necessary investment of time and resources to obtain the required market share for profitable operation in the selected market segment.
Segment profitability - assessment of indicators: profit margins, return on invested capital, increase in the total profit of the enterprise when operating in the selected market segment.
The prospects of a segment are the ability to implement the company’s plans in this segment in the long term and in the long term.
Efficiency of work in a segment is an assessment of the company’s capabilities, in terms of the availability of the necessary resources and technologies, and experience in their effective use in a given market segment.
Information accessibility of the segment - is it possible to obtain the necessary information on the segment, are there closed areas in the segment, representatives of the segment should be available for advertising and sales channels;
Efficiency of demand - the segment must be large enough in size, have a sufficient level of solvency and desire to buy the product;

Market segmentation– division of consumers with their numerous and complex needs into narrow, homogeneous groups of requirements.

Market segment– market sector, a group of consumers with certain similar characteristics, significantly different from all other market sectors and consumer groups.

The need for segmentation is determined by market pressure:

▪ if economic growth is observed, then the segmentation process becomes more complex, which is explained by an increase in needs and opportunities to meet them;

▪ if the economic situation worsens, then the segmentation process is curtailed, which is explained by a decrease in the level of satisfaction of needs by the majority of consumers.

Purpose of segmentation– identification of relatively homogeneous needs for goods in each group of buyers and organization of the commodity, pricing, and sales activities of the enterprise in accordance with this.

Purpose of segmentation analysis– identifying a niche, its development and subsequent development in the fight against competitors. The effectiveness of segmentation analysis is assessed using the following factors:

▪ the possibility of a comparative assessment of the market relative to other markets, commensurability and identifiability of markets;

▪ significant size of the promising market, allowing us to identify at least two types of consumer behavior, and the capacity of the segments, sufficient for the program of developing targeted marketing designed for these segments to acquire real meaning;

▪ the existence of sales promotion tools suitable for influencing market segments;

▪ consumer responsiveness to external influences.

Various criteria are used to determine segments (Table 3.3). The segment selected during marketing research should open up good prospects for the further development of the enterprise. In this regard, the implementation of segmentation is determined by the strategic goals of the manufacturer.

The indicators that determine the effectiveness of the segmentation performed include:

▪ market size adequate to the manufacturer’s needs;

▪ weak connection between segments;

▪ low competitiveness of goods and services offered by competitors;

▪ persistent differences between segments;

▪ low additional costs for servicing the segment;

▪ significant segment demand for goods and services from this manufacturer.

Table 3.3

Criteria for determining a market segment

When segmenting a market, various characteristics are distinguished. Some of them are presented in table. 3.4

Table 3.4

General signs of market segmentation

The main advantages of market segmentation:

▪ creation of new products that meet market demands;

▪ determination of effective sales promotion strategies;

▪ assessment of competition in the market;

▪ objective assessment of existing marketing strategies.

Main disadvantages of market segmentation:

▪ conclusions regarding market segmentation characterize only the average statistical trend in consumer behavior;

▪ diversity of consumer “lifestyles” since the 1980s. makes segmentation difficult in many markets;

▪ segmentation does not allow solving problems associated with insufficient attention to other elements of marketing. Even the most accurate segmentation is of no value if the organization has not developed strategies for assortment formation, sales promotion, pricing, and product distribution.

When conducting segmentation, it is necessary to select segmentation characteristics, taking into account the differences between the markets for consumer goods and industrial products.

Segmentations for personal consumer goods are:

segmentation by application circumstances– dividing the market into groups in accordance with the circumstances and the motive for making a purchase;

benefit-based segmentation– dividing the market into groups depending on the benefits, benefits, and advantages that the consumer sees in a given product;

segmentation by user status– dividing the market into groups depending on the degree of regularity of use of a product by its users, among whom are distinguished those who do not use this product; former, potential, regular and new users;

segmentation by consumption intensity– dividing the market into groups of weak, moderate, active consumers of a particular product;

segmentation by degree of loyalty– dividing the market into groups in accordance with consumer commitment to a certain brand of goods, measured by the number of repeat purchases of goods of this brand;

segmentation by stage of buyer readiness– classification of buyers into ignorant and knowledgeable, well-informed about the product and interested in it, and those unwilling and unable to purchase this product.

In Russia, segmentation of consumers depending on their ability to pay is very common.

General rule for segmentation: it can be carried out on the basis of one criterion, as well as through the sequential application of several criteria.

In practice, six types of market segmentation are used (Table 3.5).

Table 3.5

Types of market segmentation

Segmentation is successful if a market window is identified or a market niche is discovered.

Market window- groups of consumers whose specific needs cannot be directly satisfied by a product specially created for this purpose, but are satisfied as a result of the use of other, similar products.

Market Niche– a segment for which the products of a given company are optimal and their supply seems most appropriate. Has a high level of specialization.

Market niches can be quite profitable due to the high level of quality in meeting the specific needs of a limited number of consumers at increased prices.

The main stages of planning a segmentation strategy are:

1) determining the characteristics and requirements of consumers regarding the type of goods or services offered by the enterprise;

2) analysis of the similarities and differences of consumers;

3) development of profiles of consumer groups;

4) choice of consumer segment;

5) determining the enterprise’s place in the market relative to competitors;

6) preparation of an appropriate marketing plan.

After identifying market segments, it is necessary to determine the degree of their attractiveness, select a target market and determine marketing strategies in relation to it.

Several segments selected for marketing research and activities of this enterprise represent the target market.

Target market– an attractive market area in which the company concentrates its activities in order to fully realize its marketing opportunities.

The following factors influence the choice of target markets:

▪ enterprise resources– if they are limited, it is most advisable to use concentrated marketing;

▪ degree of product homogeneity– for goods with a possibly wide range of products (clothing, radio equipment, furniture, etc.), product-differentiated or concentrated marketing is most suitable; for homogeneous goods (cotton, oranges, etc.) - mass marketing;

▪ life cycle stage vara - when entering the market with a new product, mass or concentrated marketing is more acceptable, and at the maturity stage, product-differentiated marketing is more acceptable;

▪ degree of market homogeneity– if the buyer is homogeneous and reacts equally to marketing actions, it is advisable to use mass marketing;

▪ competitors' marketing strategies– if competitors segment the market, then the mass market is impractical; If competitors use mass marketing, then you can benefit from using concentrated and differentiated marketing.

There are five possible options for selecting the target market (Fig. 3.3:

1) concentrate efforts aimed at selling one product on one market segment (Fig. 3.3-a);

2) offer one product to all market segments (Fig. 3.3-b);

Rice. 3.2 Options for selecting target markets

3) offer all goods to one market (Fig. 3.3-c);

4) offer different products for some selected market segments (Fig. 3.3-d);

5) do not take into account the results of segmentation and supply all manufactured goods to the entire market (Fig. 3.3-e).

The development of selected target markets can be carried out by three alternative methods (Table 3.7)

Test market- some part of a certain market used by an enterprise for the purpose of experimental testing of consumer reaction to a new product.

Consulting firm “A.‑S. Nelsen" provides the following recommendations for organizing methods of working on a test market.

1. The purposes of a trial sale may be:

▪ assessment of product chances;

▪ identification of factors influencing the demand and sales of goods and their analysis;

▪ rational and targeted preparation for large-scale entry into the market.

Table 3.6

Alternative methods of developing the target market

5. The timing of sales in the test market depends on the type of product and competition (especially for industrial goods).

Along with segmentation, product positioning and differentiation are an essential element of market research.

Positioning– determining, from the consumer’s perspective, the place of a product on the market among other similar products.

Positioning is carried out after a company has chosen a market segment, when it seeks to occupy a certain place in it. If the segment is strong, then competition already exists in it and competitors within the segment have taken their “positions”. Determining the positions of all existing competitors is the first thing a company must determine when deciding on its own positioning.

TO main types of product positioning on the market include:

▪ distinctive qualities of the product;

▪ existing benefit;

▪ a special way of using the product;

▪ the relationship of the product to the competitor’s trademark.

Positioning is two interrelated processes:

1) work with potential consumers, which allows you to assess how the consumer actually perceives the product;

2) work with the product, which allows you to determine the actions necessary for this product to take a certain place among competing products.

The sequence of actions when positioning a product is presented in table. 3.8

Table 3.8

Stages of product positioning

When constructing a perception map (positioning map), in practice, a two-dimensional matrix is most often used, in which the products of competing companies are presented (Fig. 3.4)

Positioning, carried out according to two indicators - quality and price, should be carried out in the following sequence.

1. Evaluation of the goods of this enterprise and its main competitors according to two criteria: an integral indicator of quality and price.

2. Plotting all the goods under study on the field of the “quality - price” matrix, using, if necessary, the sales volume (radius of the circle) as the third coordinate.

3. Determination of the average value of the quality indicator and price for the entire set of analyzed goods.

4. Determining the severity of competition in markets by the degree of concentration of goods of competing enterprises in various quadrants of the matrix.

5. Adjusting the production and sales policy of the enterprise in terms of quality, product release price and market segment.

Rice. 3.4 Positioning map “price - quality”

Classification of commodity markets as one of the principles of their study is macrosegmentation the world commodity market as a single whole. Deepening the study of market opportunities suggests the need for further division of markets depending on consumer groups and consumer properties of goods, which in a broad sense defines the concept market segmentation (micro-segmentation).

Market segment - this is a group of buyers (or potential buyers) whose needs are very similar to each other, but in some significant respects differ from the needs of the rest of the market; even one buyer can constitute a market segment. Consumers in the same segment respond in the same way to the same set of marketing incentives.

Under segmentation (segmentation) understand the division of a specific market (or its components) into segments, differing in their parameters or reactions to certain types of activities in the market (advertising, forms of sales, etc.).

The purpose of segmentation is identify relatively homogeneous product needs for each group of buyers and, in accordance with this, orient the product, pricing, sales and promotion policies of the enterprise. Market segmentation allows a commodity producer to concentrate activities on the most promising areas, gain the opportunity to work with a separate category of loyal consumers, more clearly and purposefully pursue a marketing policy, simplify its organizational and management structure, increase competitiveness in the market and the efficiency of business activities.

Marketing includes three main activities:

o market segmentation - dividing the market into clear groups of buyers, each of which may require its own products. The enterprise determines different methods of segmentation, compiles profiles of the resulting segments and evaluates the degree of attractiveness of each of them;
o selection of target market segments - assessment and selection of one or more segments to enter with your products;
o product positioning on the market - ensuring a competitive position for the product and developing a marketing mix.

Market segmentation requires detailed knowledge of consumer requirements for a product and the characteristics of the consumers themselves. By segmenting a market based on more parameters, the accuracy of each individual segment increases.

Markets consist of buyers (consumers) who differ from each other in a variety of ways:

o according to needs;
o according to financial capabilities;
o by location;
o according to purchasing views and habits, etc. When segmenting a market, it is necessary to know the levels of segmentation, segmentation of the end consumer market, the development of market segments and other factors.

There are six stages of market segmentation:

o determination of the principles that will form the basis of segmentation;
o profile each segment;
o assessment of the degree of attractiveness of the resulting segments;
o selection of one or more segments;
o development of approaches to positioning in each target market segment;
o development of a marketing mix for each target segment.

Since each customer's needs and requirements are unique, any one of them could potentially be considered a separate market, i.e. group buyer classes.

Segmentation can be carried out at several levels:

o mass (non-segmented) marketing - market segmentation is not carried out;
o micromarketing - complete market segmentation;
o marketing at the level of market niches - segmentation is carried out at some intermediate level.

Mass Marketing focused on the use of the same product, stimulation methods, regardless of consumer preferences, segment marketing - on the needs of consumers belonging to one or more market segments.

Typically, marketing segments are large groups of consumers that are easily identifiable in a given market, such as buyers of luxury cars, performance cars, or economy models. In this way, specific market niches are created that concentrate on subgroups. Niche - a narrowly defined group of consumers resulting from dividing a segment into subsegments or identifying consumers with distinct characteristics. Sub-segments are also susceptible to further division.

Micromarketing is the tailoring of products and marketing programs to the specific tastes of consumers. This type of marketing can be divided into local marketing and individual marketing.

Local Marketing involves the special selection of brands and sales promotion so that they meet the needs of consumer groups, for example, a city neighborhood.

Individual Marketing (marketing of one consumer) - adaptation of the product range to the needs of individual consumers.

Marketing at the market niche level - formation of offers of goods and services adapted to the specific needs of consumers. This type of marketing lies in the layer between mass and micromarketing.

The variety of signs (principles) of market segmentation is presented in Table. 2.4.

Table 2.4.

Segmentation by geographical principle involves dividing the market into different geographical entities: countries, regions, districts, cities and microdistricts.

The segmenting company has two options:

o concentrate its activities in one or more geographic segments;
o act in all segments at once.

For example, a study of different national cultures made it possible to identify five geographical areas in Europe that have different attitudes towards cars, which made it possible to use a variety of means of promoting a product (in this case, a car).

Segmentation by demographic principle represents the division of the market into consumer groups based on demographic variables such as gender, age, stage of the family life cycle, income level, occupation, education, religion, race, nationality.

The demographic principle is most often used in market segmentation because consumer needs are most interrelated with other demographic variables that are easier to measure and evaluate (correlation).

The main features include:

o segmentation based on age;
o segmentation based on gender;
o segmentation based on income, etc. Needs and requirements change with age, so products are offered depending on these needs.

Segmentation by psychographic principle considers social class, lifestyle and personality type.

Social class influences consumer behavior in the purchasing decision process. In this regard, many companies develop a product or service, focusing on certain social classes.

Marketers in the modern world are increasingly paying attention to market segmentation associated with way of life consumer. For example, General Foods used consumer insights to successfully reposition its coffee product because its image was limited to the elderly segment. The company was guided by the goal of attracting consumers of all ages.

To segment a market, marketers need to study personality variables or personality type, giving products qualities that match the consumer’s personality. Successful market segmentation strategies based on personality types are used to promote products such as cosmetics, cigarettes, liquor, etc. For example, a company "Nestle" developed its own system for segmenting light snacks, identifying two segments: depressed chocolate lovers and energetic men.

When segmenting by behavioral principle Buyers are divided into groups depending on how much they know the product and how they feel about it:

1) reasons for making a purchase - groups are formed based on the reasons that accompanied the emergence of the idea of making a purchase;
2) the desired conclusions - Customer segmentation occurs based on the benefits they seek in a product;
3) user status - Segmentation is based on the following criteria:
- o status of former users;
- o status of potential users;
- o status of new users;
- o status of regular users;
- o status of non-users of the product;
4) consumption intensity - consumers are divided into weak, moderate and active;
5) degree of commitment - low, medium, high;
6) the degree of buyer readiness to perceive the product. The following consumer segments can be distinguished:
- o unaware;
- o knowledgeable;
- o informed;
- o interested;
- o those wishing to purchase this product;
- o intending to buy a product;
7) attitude towards the product :
- o enthusiastic;
- o positive;
- o indifferent;
- o negative;
- o hostile.

Let's consider the sequence of stages of market segmentation, which is applied regardless of the principle (sign) of segmentation.

Conducting qualitative and quantitative research. Carrying out qualitative research is aimed at searching for consumer motivations, clarifying consumer attitudes towards a product and understanding consumer behavior. Typical research methods at this stage are focus group interviews or questionnaires.

At quantitative research it is important to determine quantitative relationships and values of parameters describing the market. Data are collected through mailed questionnaires or personal interviews.

The sample size depends on the required level of accuracy and the statistical methods to be used. Information for each segment will be regarded as necessary and sufficient. Things to consider:

o list of characteristics and their significance;
o informing consumers about existing brands and their ratings;
o typical patterns of product use;
o consumer attitude towards this trade category;
o demographic and psychological habits of consumers, their attitude towards the media, etc.

Analysis of the obtained data. The nature of the data that needs to be collected depends on the specific analysis methods offered. In general, you can use factor analysis, to eliminate highly correlated variables, and then cluster analysis - to highlight segments. Other data analysis methods can be used.

Checking and confirming the correctness of the analysis results. The correctness of segment selection is checked by analyzing the obtained statistical data.

Creation of a segment profile. For each selected segment, a profile is compiled using cluster analysis that describes its properties: purchasing behavior model, demographic characteristics.

Evaluating the effectiveness of segmentation. There are many ways to segment a market, but not all of them are effective. The effectiveness of market segmentation is assessed through the following criteria:

o measurability - the extent to which it is possible to measure the size of a market segment, its purchasing power and its expected profit;
o availability - degree of coverage and service of the market segment;
o significance - the extent to which a segment can be considered sufficiently large or profitable;
o suitability - the degree to which effective marketing programs have been developed for a given market segment aimed at attracting and servicing its constituent consumers;
o stability - The short-, medium- and long-term viability of the segment must be assessed, particularly in light of changing competitive and market environments.

In real life, the average buyer (consumer) does not exist, just as there is no market in general - there are specific markets that are necessarily different from each other in some way, even if the same product is presented on them. Therefore, it is important for a manufacturer producing specific goods with a very specific set of consumer properties to know the attitude of potential buyers and target market segments to this.

Firms operating in the market are aware that their products or services cannot fully satisfy the needs and desires of all consumers. Ideally, the company will try to occupy all market niches (segments) to maximize profits. In fact, it conducts marketing research and, as a result, focuses its “attention” on certain market segments where its product will bring maximum income - after all, it is quite obvious that different consumers want to purchase different products. In theory, the market segmentation strategy looks like this (Fig. 1)

Figure 1

The article will discuss the first point of this scheme - “Market Segmentation”, as well as the methods and principles of market segmentation that have become widespread here and in the West.

Market segmentation

1. Classification of markets

Before considering the issue of market segmentation, it is advisable to classify them. In marketing, the market refers to the totality of all potential consumers who have a need for goods in a particular industry and have the opportunity to satisfy it. Depending on the type of consumers, the following types of markets are distinguished: consumer market and organizational markets. The latter are divided into markets for industrial and technical products, resale markets and markets for government institutions. With such an abundance of markets, it is obvious that when segmenting a market, it is necessary to take into account certain of its features and take into account the uniqueness of products sold in different markets.

2. Definition of market segmentation

As an introductory word, it is appropriate to recall the Pareto law (“the 80:20 law”), according to which only 20% of customers bring the company 80% of the income, representing a generalized group of the company’s target customers. The company focuses its products on them (“shooting at targets”). This market strategy seems to be more effective. In essence, this is market segmentation.

Market segmentation involves dividing markets into distinct groups of buyers (market segments) who may require different products and be targeted by different marketing efforts.

A segment is a group of consumers characterized by a similar reaction to the product offered and to a set of marketing incentives.

The main arguments in favor of segmentation are the following:

1. Provides a better understanding of not only the needs of consumers, but also what they are like (their personal characteristics, behavior in the market, etc.)

2. Provides a better understanding of the nature of competition in specific markets. Based on knowledge of these circumstances, it is easier to select market segments for their development and determine what characteristics products should have to gain competitive advantages.

3. It becomes possible to concentrate limited resources on the most profitable areas of their use.

4. When developing plans for marketing activities, the characteristics of individual market segments are taken into account, resulting in a high degree of orientation of marketing activity tools to the requirements of specific market segments.

3. Segmentation criteria

The first step in conducting segmentation is to select segmentation criteria. At the same time, it is necessary to distinguish between the criteria for segmenting markets for consumer goods, industrial products, services, etc. Thus, when segmenting the market for consumer goods, criteria such as geographical, demographic, socio-economic, psychographic, behavioral, etc. are used.

Geographical segmentation- dividing the market into various geographical units: countries, regions, regions, cities, etc.

Demographic segmentation is the division of the market into groups depending on consumer characteristics such as age, gender, marital status, family life cycle, religion, nationality and race.

Socio-economic segmentation involves dividing consumers by income level, occupation, and level of education.

Psychographic segmentation- dividing the market into different groups depending on the social class, lifestyle or personal characteristics of consumers.

Behavioral segmentation involves dividing the market into groups depending on consumer characteristics such as: level of knowledge, attitudes, nature of use of the product or reaction to it.

In accordance with the relationship, segmentation is distinguished: based on the circumstances of use, based on benefits, based on user status, based on intensity of consumption, based on the degree of loyalty, based on the buyer’s stage of readiness to make a purchase.

Segmentation by circumstances of application - dividing the market into groups in accordance with the circumstances, reasons for the idea, making a purchase or using a product.

Segmentation based on benefits is dividing the market into groups depending on the benefits that the consumer is looking for in a product.

User status characterizes the degree of regularity of use of a product by its users, who are divided into non-users, former users, potential users, new users and regular users.

Consumption intensity - an indicator on the basis of which markets are segmented into groups of weak, moderate and active consumers of certain products. Obviously, it is more profitable to serve one market segment consisting of a significant number of active consumers than several small segments of weak consumers.

The degree of loyalty characterizes the degree of consumer loyalty and commitment to a particular brand of product, usually measured by the number of repeat purchases of a product of this brand.

The stage of buyer readiness is a characteristic according to which buyers are classified into those who are unaware and aware of the product, those who are interested in it, those who want to buy it, and those who intend to buy it.

When segmenting the market for industrial and technical products, the following criteria are primarily used: geographic location; type of organization purchasing the goods: size of purchases; directions for using purchased goods.

Segmentation can also be carried out by sequentially applying several criteria. It is important that the segments are not too small, i.e. unprofitable for commercial development. As an example, in Fig. Figure 2 shows a fragment of the results of a sequential three-stage segmentation of the aluminum consumer market.

Figure 2

4. Requirements for segmentation efficiency

Without a doubt, there are many ways to segment a market - but not all of them are effective. For example, table salt consumers can be divided into brunettes and blondes. But hair color has no effect on the amount of salt demanded. Therefore, if consumers purchase salt every month, at the same price and presumably of the same quality, segmenting this market will not bring tangible benefits.

To be useful, market segments must satisfy the following characteristics:

Measurability is the degree to which the size and purchasing power of a market can be measured. For example, it is almost impossible to determine the number of left-handers - this is not indicated in any statistical collections. Typically, company information databases do not contain such indicators either.

Availability is the degree to which the market can be reached and supplied with the required quantity of products.

The reality is the degree of profitability and size of the segment. The company should focus its marketing strategy on the largest homogeneous group of consumers - for example, a manufacturer will never make a car for people whose height is below 1.20 m - only to order.

Effectiveness is the degree to which an effective marketing program can be used to attract consumers. For example, a small aircraft may satisfy 7 market segments, but the CEO lacks the ability and ability to succeed in all market sectors.

Segmentation Methods

Some "basic" segmentation methods can be identified. The most important of them is consumer cluster analysis (taxonomy). Consumer clusters are formed by grouping together those who give similar answers to questions asked. Buyers can be grouped into a cluster if they have similar age, income, habits, etc. Similarity between buyers is based on different measures, but often the weighted square of the differences between buyers' responses to a question is used as a measure of similarity. The output of clustering algorithms can be hierarchical trees or grouping of consumers into groups. There are quite a large number of cluster algorithms.

For example, in the USA, cluster analysis of systems called PRIZM is widespread , which begins clustering by reducing a set of 1000 possible socio-demographic indicators. This system forms socio-demographic segments for the entire territory of the United States. Thus, cluster 28 has been identified - families that fall into this cluster include individuals with the most successful professional or managerial careers. This cluster also reflects high income, education, property, and approximately middle age. Although this cluster represents only 7% of the US population, it is critical for entrepreneurs selling high-value goods. There are other examples of consumer segmentation based on cluster analysis. For example, among the “psychological” sectors, a very important place is occupied by “the consumer’s attitude to the novelty of the product” (Fig. 3)

Figure 3

As can be seen from the above data, the largest number of consumers are ordinary buyers. Consumer segmentation based on cluster analysis is a “classical” method. At the same time, there are methods of market segmentation based on the so-called “product segmentation” or market segmentation according to product parameters. It is especially important when releasing and marketing new products. Product segmentation, based on the study of long-term market trends, is of particular importance. The process of developing and producing a new product and completing large investment programs require a fairly long period, and the correctness of the results of market analysis and assessment of its capacity is especially important here. In conditions of working on the traditional market of standard products, calculation of its capacity can be carried out by using the market summation method. In modern conditions, in order to increase its competitiveness and correctly determine the market capacity, it is no longer enough for an enterprise to carry out market segmentation in only one direction - defining consumer groups according to some criteria. As part of integrated marketing, it is also necessary to segment the product itself according to the most important parameters for its promotion on the market. For this purpose, the method of compiling functional maps- conducting a kind of double segmentation, by product and consumer. Functional maps can be single-factor (segmentation is carried out according to a single factor and for a homogeneous group of products) and multi-factor (analysis of which consumer groups a specific product model is intended for and which of its parameters are most important for promoting products on the market) Using compilation functional maps can be used to determine which market segment a given product is designed for, which functional parameters correspond to certain consumer needs. When developing new products, this technique assumes that all factors reflecting the system of consumer preferences, and at the same time the technical parameters of the new product, must be taken into account. with the help of which it is possible to satisfy consumer needs; consumer groups are determined, each with its own set of requests and preferences; all selected factors are ranked in order of importance for each consumer group.

This approach allows you to see already at the development stage which parameters of the product require design improvements, or to determine whether there is a sufficiently capacious market for this model.

Let us give an example of such a market analysis in relation to the Apple computer project being developed (Table 1)

Table 1. "Segmentation of the personal computer market and factors taken into account when developing products for it (1982)"

	Market segments by consumer groups
		To the house. office	In small business	In a corporation
Technical specifications

Special qualities
Reliability
Convenient to use
Compatibility
Peripheral equipment
Software

*** is a very important factor

** - important factor

* - unimportant factor

0 - insignificant factor

This simple analysis shows that Model A is a computer without a market, and Model B is the most suitable product for universities and small businesses.

The company once bet on computer A and lost.

In general, in world practice, 2 fundamental approaches to marketing segmentation are used.

Within the first method. called “a priory”, the characteristics of segmentation, the number of segments, their number, characteristics, and a map of interests are previously known. That is, it is assumed that segment groups in this method have already been formed. The “a priory” method is used in cases where segmentation is not part of the current research, but serves as an auxiliary basis for solving other marketing problems. Sometimes this method is used when market segments are very clearly defined, when the variability of market segments is not high. “A priory” is also acceptable when forming a new product aimed at a well-known market segment.

Within the second method, called “post hoc (cluster based), the uncertainty of the characteristics of segmentation and the essence of the segments themselves is implied. The researcher first selects a number of variables that are interactive in relation to the respondent (the method involves conducting a survey) and then, depending on the expressed attitude towards a certain group of variables, respondents belong to the corresponding segment. In this case, the map of interests identified in the process of subsequent analysis is considered as secondary. This method is used when segmenting consumer markets, the segment structure of which is not defined in relation to the product being sold.

Segmentation using the "a priory" method

When choosing the number of segments into which the market should be divided, they are usually guided by the target function - identifying the most promising segment. Obviously, when forming a sample, it is unnecessary to include segments whose purchasing potential is quite small in relation to the product under study. The number of segments, as studies show, should not exceed 10; excess is usually associated with excessive detail of segmentation features and leads to unnecessary “blurring” of features.

For example, when segmenting by income level, it is recommended to divide all potential buyers into segments of equal volume, taking into account that the volume of each segment is at least not less than the estimated volume of sales of services, based on knowledge of the production capacity of the enterprise. The most successful example that explains the above and demonstrates the possibility of dividing potential consumers into stable segment groups can be segmentation of the population based on income, when the entire population is divided into five 20% groups. The presented distribution of income by five 20% population groups is regularly presented in statistical collections and reports, similar to that presented in table. 2

Table 2." Distribution of income by population groups. %"

The convenience of working with such segment groups is obvious, especially in terms of tracking their capacity. Segmentation of consumers of industrial markets using the “a priory” method is carried out in accordance with two possible situations regarding the type of consumers:

a) all possible consumers of the market are “known” and their list can be compiled (the number of consumers does not exceed 50 firms)

b) there are quite a large number of consumers, their composition often changes and it is impossible to compile a specific list of them.

In case a), if there are large consumers, their list description is made, that is, a complete list of all consumers is considered. This method in relation to consumers of the industrial market is called a “complete census of the upper stratum of consumers.” The use of this method makes it possible to determine the capacity of the consumer market, which is considered as the sum of the needs of enterprises from the generated census.

In the second approach to describing consumers of the industrial market, when the number of consumer enterprises making up the segment is quite high and there is no possibility of forming a “complete census,” segmentation is used according to conditional characteristics related to the activities of the industrial enterprise or its characteristics. Such signs may be the components of the financial indicators of an industrial enterprise (the amount of turnover, profitability of activities, the value of fixed assets, etc.). features of the structure or scheme for making a purchase decision, personnel

becoming and similar indicators. The choice of enterprise indicators and segmentation features in this case is determined by the nature of the services or products that are supposed to be provided or supplied to these enterprises. An example of segmentation of industrial enterprises by trade turnover and areas of activity is presented in Table. 3

Table 3. "Segmentation of enterprises by trade turnover and areas of activity"

	Segment characteristics
Small firms	Family businesses with limited financial resources. Lack of administrative apparatus, minimum planning. The scope of activity is geographically limited. Commercial success is linked to the policies of 1-2 key individuals. Financial expertise limited to bank or chartered accountant advice
	Medium-sized companies
Service sector	Large number of workers. Need for long-term funding sources to expand operations
Retail	Large number of workers. Large volume of accounting and accounting work, as well as cash transactions
Manufacturing industry	Funding problems. Need for premises
	Large firms
Service sector and	Focus on expansion and market capture.
	Segment characteristics
retail	Existence of a wide network of branches with extensive sales staff and administrative control
Manufacturing industry	Greater need for investment in buildings and equipment. The desire to introduce new products, which creates the need for research and development. Constant desire to conquer new markets especially abroad
Agriculture	High level of production specialization. Seasonal cash flow problems. Relatively low return on capital

"K-segmentation" method ("post hoc" method)

The "K-segmentation" method ("post hoc" method) is aimed at searching for signs of segmentation with subsequent selection of segments. The method implies that there is a consumer market, the structure of which is unknown and cannot be determined “a priori” based on specified characteristics.

Conditions for the effectiveness of the method implementation:

The company has at least 100 clients (buyers or persons to whom the service is provided) per month.

Possibility of conducting a survey of the company's clients.

Availability of special software "DA-system 4.0" (company "Context") or STATISTICA 4.3 (company StatSoft).

Segmentation Stages

Determining Possible Signs of Segmentation

Obviously, signs of segmentation cannot be determined without appropriate consumer research. But, nevertheless, it is always possible to assume possible signs of segmentation. First, you can survey the company's salespeople who directly sell to customers about ways in which customers may be divided. And secondly, you can use social-income and socio-demographic characteristics of segmentation (gender, age, income, profession, etc.).

Conducting a survey

At the second stage, a questionnaire is compiled and a survey is conducted (in any form: written, oral, group conversation, field experiment, survey by technical means). The purpose of the survey is to assign each client to certain differentiated points of the segmentation characteristics selected at the second stage. The specified condition (the presence of differentiated points in each question) determines the need to form

only closed questions. Only the company’s clients who purchased a product or service (or are being serviced) in a local period of time are surveyed, preferably within 1 month

The differentiated points of each question are assigned corresponding serial numbers, which will be entered as an option for the respondent to answer the question. The survey results are entered into the appropriate program

Determining "suitable" segmentation features

The degree of “suitability” of a certain segmentation feature can be considered the presence of a certain mathematical correlation between a pair of supposed features (the presence of a correlation between questions in a given study). The presence of a high level of correlation (the highest value of the calculated mathematical correlation coefficient) indicates the presence of a relationship between the characteristics, that is, the possibility of their joint use. And a stable segment group can only be identified at the intersection of two segmentation characteristics.

Selecting segments

Based on the obtained segmentation characteristics, segment groups (also called “consumer segments”) can be formed. Typically, their number does not exceed 5-6 groups. Groups with the highest percentage are identified as market segments.

Segment formulation

At the last stage, the selected segments are given a description and assigned special marketing nicknames - for example, for new customers - “newbie”, for old customers - “old-timers”. Based on these selected segments, further design, modernization or positioning of the product can be carried out.

Criteria-based assessment of promising segments

The final stage of the formation of segment groups is the “criteria assessment” of the selected segments, within the framework of which their compliance with a number of marketing criteria for the successful positioning of products on them is considered.

Several criteria assessments are considered:

Compliance with the capacity of the segment - a positive parameter can be considered the ability to direct all the production capacity of the enterprise to work in this segment, i.e. The segment capacity must be greater than or equal to the production capacity of the enterprise.

The segment accessibility criterion is for the enterprise: analysis of this issue gives management information about whether it has the opportunity to begin promoting its services in the selected segment or whether it still needs to take care of forming a sales network and establishing relationships with intermediaries. That is, the question is: has the company worked with this segment before?

The criterion for the materiality of a segment is an assessment of how stable this group of consumers is in terms of its main unifying characteristics. Is this segment growing, stable or declining? Is it worth targeting your production capacity to it?

By criterion compatibility of the segment with the market main competitors The management of the enterprise must receive an answer to the question to what extent the main competitors are ready to sacrifice the selected market segment

Conclusion

My work examined the basic methods and principles of segment marketing analysis. In reality, there are many more methods for defining a market segment. Ultimately, segmentation is not an end in itself. Its main task is to answer the question whether stable groups of consumers of a given product can be identified. If such groups are not identified, then the company’s activities can be focused on all buyers of this product (the so-called mass marketing strategy)

Literature

Alekseev A.A. Marketing research of the services market: Textbook. manual. - St. Petersburg: Publishing house SPbUEF, 1998

Motyshina M.S. Methods and models of marketing research: Textbook. manual. - St. Petersburg: Publishing house SPbUEF, 1996

Golubkov E.P. Marketing research. - St. Petersburg: 1999

Kotler, Philip. Principles of marketing.-5th ed.

Arenkov I.A. Marketing research: fundamentals, theories and methods: Textbook. manual.- St. Petersburg: Publishing house SPbUEF, 1992

One product cannot please absolutely all people - this is an axiom. Children have no use for decorative cosmetics, women, as a rule, are indifferent to spinning rods, and men do not understand the types of heels on shoes. But even within these large groups there are smaller ones whose needs may vary greatly. This is precisely why there is such a thing as a market segment. What does it mean? And what are the main ones?

Market segments

Essential goods, luxury goods, more expensive or cheaper analogues - all this is available in almost any market. Certain groups of the population always find something suitable for themselves. But how does this happen? The thing is that manufacturers, with the help of marketers, conditionally divide the entire mass of consumers and products into different groups. The criteria can be very different: income, age, place of residence, marital status, interests and hobbies, etc. for buyers, as well as a huge number of parameters when it comes to goods.

The needs of people belonging to certain segments will be different. It is unlikely that residents of northern latitudes will need a car with only air conditioning, but UAE citizens do not need heated seats. As a rule, a market segment is a group of people with similar indicators according to some distinguished criterion. But why do you need to know this? Of course, to identify and satisfy their needs, while receiving maximum income. That is why it is traditional to talk about division in the context of commodity industries. But, of course, it’s worth saying a few words about other sectors of the economy, for example, segments of the financial market are of interest. But more on that later.

Real market

It’s easiest to consider segmentation using the example of the simplest and most familiar area of buying and selling goods and services. Here it allows not only to find out the composition of participants on the buyer’s side, but also to evaluate future competitors. Identifying what products are on the market and what consumer qualities they have, including price category, type of packaging, packaging, etc., helps in finding your own niche. Of course, either one criterion or a whole complex of them can be applied. This allows you to see the main sectors and their relationship. As a rule, it is impossible to take in the whole picture, but focusing only on large and medium-sized players, whose market segment share is more or less significant, gives a very real picture.

Why do you need segmentation?

Dividing consumers into groups is necessary for more efficient functioning of the market and meeting consumer demand. In addition, identifying target segments allows the company to reduce production costs in the long term. In the process of studying the most suitable strategy, market participants go through 3 main stages. However, sometimes a manufacturer acts based on one principle all the time:

Mass marketing. Here, as a rule, the manufacturer focuses on the general features and needs of its customers. Standardization of goods and the absence of the possibility of customization for a specific client allows you to reduce costs and keep prices at an acceptable level.
Product-differentiated marketing. Here it is already possible to control the characteristics of the proposed product so that it attracts different categories of consumers. This ensures a low level of risk and a fairly high level of sales.
Targeted marketing. Concentrating on one or a few segments can be either extremely profitable or completely disastrous. At the same time, the consumer expects that the product will fully meet his needs, which imposes a certain risk on the manufacturer.

Each of these approaches has its own advantages and disadvantages, but the third at the moment seems to be the most effective, although the most costly in terms of human and financial resources. However, an individual approach pays off - a variety of choices allows consumers to purchase products that suit them.

A correctly defined target market segment is half the success of a marketing campaign, so you should be very careful in choosing it or entrust this process to professionals. Indeed, the process may require a large-scale survey, study of opinions, etc., especially if we are talking about innovative goods or services. But more on that later. Essentially, the process of segmentation is the structuring of the market according to the degree of priority of capturing a particular suitable audience and with the aim of finding a possible niche. How does this happen?

Stages

Selection and analysis of market segments is a complex process that requires a systematic approach. That is why it is usually divided into several stages:

Identifying customer needs and requirements for the product offered. Suggestions and criticism are systematized and analyzed.
Identify consumer similarities and differences to develop a marketing plan.
Profiling buyer groups. Separating them into a separate market segment. Selection of target groups. Characteristics of the market segment.
Determining the most profitable option in terms of targeting customers, sales channels, etc.
Creating a business plan.

This may not seem like a big deal, but in reality, making the wrong decision for a small company can lead to bankruptcy, so it's worth taking the analysis process seriously.

Segmentation Criteria

The principles of market division can be completely different depending on the industry. These can be quantitative or qualitative parameters, as well as completely special factors.

And yet, certain general segmentation criteria exist, and they can be used in a variety of combinations:

Geographical. The location of consumers is taken into account.
Demographic. Age, gender, belonging to a certain generation, level of income and spending are considered.
Behavioral. The frequency of purchases, ranking according to the importance of consumer qualities of a product, attitude towards brands, driving forces inducing purchases, etc. are studied.
Psychological. We are talking about tastes, preferences, interests.
Consumption style. Identification of patterns, willingness to buy related and complementary products.

But in what form is this implemented in practice? What are the service market segments or how to choose a suitable niche for an innovative product? All this is worth talking about in more detail.

Consumer classification

Any market segment is not numbers on paper, in real life it is just people making purchases. Therefore, in order to understand how to sell them your product, you need to know how they behave and why. The traditional classification identifies five types:

individual, that is, single people making purchases exclusively for personal use;
households, in this case the wishes and tastes of several people are already taken into account, the volume of consumption is higher;
intermediaries, that is, entrepreneurs who buy goods for the purpose of subsequent resale;
suppliers, company representatives;
civil servants and officials.

It also makes sense to list consumer groups according to the model of their reaction to a new product on the market; it makes it very clear how different each segment of the market for goods or services is:

innovators strive to be among the first to try a new product;
adherents popularize the product;
progressives provide mass sales;
skeptics join in at the stage of market saturation;
conservatives show demand only when the product moves into the “traditional” category.

Perhaps it comes down to natural curiosity and a desire to try new things, although sometimes certain consumers find themselves in one of the groups completely unexpectedly. It is always worthwhile to assess the realities very soberly. For example, some segments of the Russian market have not yet been completely formed, while others are in their infancy. Of course, when analyzing the business environment, such things need to be taken into account.

Choice

There are no uniform principles that allow you to accurately answer the question of which market segment to choose - you have to act by trial and error, changing variable values and collecting information on the effectiveness of promoting goods and services. At the same time, various market factors that influence demand come into play: competitors' strategies, market conditions, the degree of homogeneity of the market and the product being produced, company resources, as well as stages of the product life cycle. So the smartest thing to do is to monitor consumers’ reactions to certain changes and vary the promotion method. For all this, such powerful marketing tools as factor, joint, and cluster types of analysis are used.

Multiple segmentation

If the size and financial position of the company allows, it is possible to implement a special method of work. It lies in the fact that the company selects the main market segments for itself, diversifying its activities, and thereby maximizing turnover. There is a certain risk of not being able to cope with the requests of counterparties from different industries, at the same time, the loss of one or two areas will not be critical. As a rule, only large companies can afford this style of work, since each segment of the enterprise’s market requires special attention, which, given the overall scale, is quite costly in terms of financial and labor resources.

Product positioning

Selecting target market segments and promoting goods involves not only careful study and segmentation, but also the creation of a certain image for the good or service offered to customers. Positioning is a subtle tool that must be used quite carefully, because without taking into account the needs of the target audience, you can only alienate them. Ways to promote your product can be different: you can rely on excellent characteristics or environmental friendliness, you can characterize what is being offered as an elite and exclusive item, accessible to a few, or vice versa - create an aura of democracy and friendliness towards the buyer around the brand - in a word, there are methods and directions multitude.

Labor market

In addition to factors common to all areas, there are also special ones at work here. For example, a distinction is made between the primary and secondary market segments. These are two separate parts, characterized in completely different ways.

Thus, the primary market covers relatively higher-paid professions that are in stable demand. At the same time, the secondary part is characterized by high staff turnover, less prestige, unstable employment and low qualifications of participants.

Analysis of labor market segments is the job of recruiting companies and organizations that are just starting out and are about to recruit staff. The assessment will allow you to calculate the most attractive conditions for job seekers and generally understand what helps people choose a particular company in their job search.

Service sector

If a product is something material, then the next market offers something that is quite difficult to evaluate in terms of qualitative parameters. We are, of course, talking about various services: medical, educational, consulting, etc. At the same time, it is divided into two large parts that are very different in operating principles. The first is the so-called B2B, which covers market segments of services provided to companies. The second one works directly with end consumers. If you do not focus on the intangibility of goods, this market is not fundamentally different from the commodity market.

Financial market

The monetary and banking sectors are the most popular service sectors, so it is not surprising that they are so well developed. The following segments of the financial market are distinguished: credit, foreign exchange, insurance, investment. Sometimes the securities sector is also distinguished separately. Many companies do not limit their work to one segment, while others, on the contrary, prefer to focus on a specific area. In general, what is now observed is rather the consolidation of companies and the diversification of their activities within the industry.

Innovation

There are also completely special situations. Innovative solutions launched on the market is a separate topic that requires much more detailed consideration. Firstly, the absence of competitors provides special conditions. Secondly, the marketing strategy must be built very wisely so that buyers do not treat the product with caution.

New market segments are always a difficult and unpredictable road. History knows examples when even the most successful companies released frankly unsuccessful products. However, any consumer can say that almost any equipment manufacturer has real legendary products in its arsenal; otherwise, there is simply no chance of success. Perhaps, as is the case if the choice of target market segments is made incorrectly.

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