The 4 Types Of Market Segmentation

Before we discuss the types of market segmentation I would like us to touch on the market analysis used to build marketing strategies, in which we have market segmentation as part of the marketing process. Now, for a business to strive against its competition n the market, there is a need to execute market analysis that focuses on the internal and external environmental factors, but in all determine the conducive market environment for a business one must execute a practical market analysis as a fundamental input to the process of strategy formulation and strategic decision making.

Market Segmentation
To know a market implies segmenting that market. In marketing, Market segmentation can be defined as the analysis of a particular market demand into its constituent parts, so that sets of buyers can be differentiated and targeted. Having carried out the process of market analysis described immediately above, the enterprise can segment and analyze its target markets.

It will use the results of its market research, the analysis of consumer or buyer behavior, and the forecasts it has made in order to produce detailed descriptions of its chosen market components and their likely behavior over the planning period in view.

This means identifying the characteristics of different sets of buyers within the market. These sets of consumers or buyers need to be differentiated so that:

they may be used as marketing targets against which appropriate products or services may be positioned exactly to meet segment customer demand; and
a promotion and distribution mix appropriate to that particular segment may be selected.
What then follows is that the enterprise needs to choose a method of segmenting the market that most effectively allows it to understand the market and its customer needs.

You can read more about the types of market segmentation from our blog.