Market Research-market segmentation

For this session we how to use market research for market segmentation.  There are a number of bases that can be used to segment a market.  These include:

• Demographic
• Geographic
• Geodemographic
• Psychographic
• Behavioural
• Benefit
• Occasions of use

Once a segment has been selected it is necessary to focus on the size and growth of the market, the attractiveness of the segment and company objectives and resources.
Once a market has been segmented then the company can target their customers.  When a company is choosing a target market strategy it is necessary to conduct research on the company's resources such as manpower, capital, capabilities and skills and also the degree of product variability.

Once the target strategy has been selected it is then necessary to focus on how the company wants to position their product or service.  There are a number of ways that a company can position their product/service.  These are:

• The features of the product or service
• Usage category
• Benefits of the product or service
• Specific usage occassions
• Against competition