What is the market segmentation in a business plan

From a tactical point of view, this section is also where you need to place your competitive edge without mentioning it explicitly. Business Segmentation Segmenting for business customers often has overlap but commonly includes geographic, customer type and behavior-based strategies.

Segmentation by Size Business to business, or B2B, marketers sometimes choose to target potential business customers based on their size. A big-picture trend analysis is also helpful. Some other groups in Apple also focused on government as a specific market segment. If you can determine the characteristics your prospects most value in an enterprise they purchase from, you can identify those your organization possesses and promote them to the prospect.

Include a description of your target customers, why you think they are likely to want your product, and your projected sales and profits. Target consumers by demographics such as sex, age, income or parental status. An example is dark chocolate for some tastes, light chocolate for others.

Unique employee skills, knowledge Extensive experience with a specific market segment or field of scientific inquiry can be a powerful promotional tool.

The following classifications may help. Creation of or response to a fad Examples are hula hoops, Jurassic Park T-shirts, pet rock, physical fitness, etc. Wants offerings that make effective use of technology, but is not interested in offerings just because they use a certain technology.

Camping enthusiasts, for instance, typically have few consistent demographic traits.

Examples of Business Market Segmentation

Improved service delivery Prospects might be service businesses in highly competitive markets, product businesses requiring considerable post-sale support or individuals in remote or rural areas.

For individuals this may be due to subtle, as well as, economic reasons. This section is relevant when your market has clear segments with different drivers of demand.

Market Segmentation

Social status This could include country club memberships, philanthropic contributions, etc. A product might be books on how to start a business or a service might be seminars on how to quit smoking. For example, a service that helped evaluate capital investment opportunities would fall into this domain of influence.

They segmented the market in a way that defined a range of products as "oral satisfacters" their term, not mine.

Provide support in the rest of your document. Improved service delivery Prospects might be service businesses in highly competitive markets, product businesses requiring considerable post-sale support or individuals in remote or rural areas.

Market Segmentation

Improved cash flow Prospects might be businesses that have traditionally low profit margins, businesses that have traditionally high inventory costs or individuals that live in expensive urban areas.

This also often results in lower purchase prices. You would investigate the logistics of all three scenarios. Very negative to technically complex offerings or offerings requiring extensive user education. Examples might be a trash service, emergency medical support, etc.

For example, when a local computer store business defines its customer segments as "high-end home office" and "high-technology small business," its segmentation says a lot about its customers. The goal is to separate out those segments that your business can serve most profitably, ideally in a way that makes them less prone to switching vendors based on a price decrease or marketing pitch from a competitor.

Examples might be, an employee insurance plan or a corporate wide communications system. This is especially beneficial for vertical market offerings. Affiliation with other organizations Such as the U. Creation of or response to a fad Examples are hula hoops, Jurassic Park T-shirts, pet rock, physical fitness, etc.

Geographic location Marketers take advantage of location by selling suntan lotion in Hawaii, fur coats in Alaska, etc. Not particularly concerned with keeping employees informed and educated, so educational offerings are not of great interest.

Reduction in expenses Prospects might be businesses that are downsizing right sizingbusinesses that have products in the mature stage of their life cycle or individuals with credit rating problems. Will always want to review competitive offerings, but will usually choose the one offering the greatest benefit, even if there is some risk involved.

Often consider just because they use a certain technology that is relevant to the development program they have underway. Both consumer-oriented and business-oriented companies should segment customers using one of several common approaches.Market segmentation is one of the steps that go into defining and targeting specific markets.

It is the process of dividing a market into a distinct group of buyers that require different products or. Market Segmentation The purpose for segmenting a market is to allow your marketing/sales program to focus on the subset of prospects that are “most likely” to purchase your offering.

If done properly this will help to insure the highest return for your marketing/sales expenditures. Marketing segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs and application for the relevant goods and services.

Marketing campaigns are then designed and implemented to target these specific customer segments. Jun 29,  · Segmentation is the process of dividing a target market group into sub-sections that can then be communicated with through specific communication channels and key messages.

Business markets can be. Definition of market segmentation: The process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix.

How to do a market analysis for a business plan

Segmenting a market refers to targeting a product to a specific target customer or industry, such as selling footwear to women or accounting software to hospitals. Market segmentation helps new companies develop a niche, or existing companies expand.

market segmentation Download
What is the market segmentation in a business plan
Rated 5/5 based on 7 review