The resulting segments are market segmentation. Segmentation of markets for individual goods. Market segmentation methods

Market segmentation.

The basis of the entire planning system in market conditions is sales forecasting. Therefore, the first task of the company’s management is to determine the sales volume in accordance with demand, and only on the basis of an assessment of the sales market can one begin to plan the production and financial activities of the company.

Sales market assessment is a set of measures aimed at studying the trade and sales activities of an enterprise, and studying all the factors influencing the process of production and promotion of goods from manufacturer to consumer. Each enterprise realizes that its products cannot be liked by all customers at once, therefore, with the help of marketing, the management of the enterprise, based on information about potential consumers, regions in which there is demand, prices that consumers are willing to pay for the product, distribution channels, and competition, determines sales market segment.

A market segment is a part of it, defined in a special way, that can be effectively served by an enterprise.

The objects of sales market segmentation are:

Consumer groups;

Groups of products (goods, services);

Enterprises (competitors).

Market segmentation by consumer groups is a grouping of consumers according to some characteristics that, to one degree or another, determine the motives for their behavior in the market.

Market segmentation by product groups is a derivative of market segmentation by consumer groups and takes into account the needs and preferences of consumers regarding the quality characteristics of the product (goods, services).

Segmentation by enterprise (competitor) is a grouping of competitors according to competitiveness factors in moving to the market.

Segmentation criteria

Segmentation criteria are signs, based on the totality of whose values, consumers are classified into a particular group (segment). Market segments are formed by consumers who have the same value for all selected segmentation criteria.

The market segmentation procedure begins with the selection of segmentation criteria.

The most common segmentation criteria are:

Segment capacity, which will determine the number of potential consumers and, accordingly, the required production capacity;

Channels for distribution and sales of products, allowing to resolve issues regarding the formation of a sales network;

Market stability, allowing you to make a choice about the advisability of loading the enterprise’s capacity;

Profitability, showing the level of profitability of an enterprise in a given market segment;

Compatibility of a market segment with the market of its main competitors, allowing one to assess the strength or weakness of competitors and make a decision on the feasibility and willingness to make additional costs when targeting such a segment;

Assessing the work experience of specific enterprise personnel (engineering, production or sales) in the selected market segment and taking appropriate measures;

Protection of the selected segment from competition.

Segmentation criteria can be divided into two groups: those that directly characterize the consumer himself and those that characterize the consumer’s attitude toward the product.

Criteria that directly characterize the consumer himself.

Geographic 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 is the division of 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.

Criteria characterizing the attitude of consumers towards the product.

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.

Benefit-based segmentation is the division of the market into groups depending on the benefits, benefits or values ​​that the consumer is looking for in a product.

Segmentation by 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.

Segmentation by consumption intensity is 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.

Segmentation by 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.

Segmentation by stage of buyer readiness for consumption 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.

Segmentation process, stages

Companies reviewing their segmentation strategies may conduct it as a separate study or as part of a business or marketing plan. Customer needs are constantly evolving and are influenced by general and specific market trends, the company's and its competitors' offers, and the opinions of other customers. Re-evaluating market segments provides better product orientation, a deeper and more accurate understanding of needs, and creates opportunities to develop sustainable competitive advantage. For successful segmentation, it is worth identifying potential obstacles in advance. Indeed, in addition to market segmentation, there is also the need to comply with business realities. Most companies have loyal customers, established distribution channels, strong sales teams and market initiatives. Long-term distributor relationships and marketing programs cannot be changed quickly. When companies re-evaluate their segmentation, they may be severely constrained in operational terms. Ultimately, it is only worth reconsidering strategies when the benefits of segmentation outweigh the practical and financial costs.

The essence of segmentation is revealed in the stages of its implementation: subgroups of buyers with similar needs are identified, some of these groups are selected for further work and they are offered carefully developed sales and marketing programs that emphasize the distinctive image of the product or position the brand. Thus, there are 3 stages of market segmentation:

1. Direct segmentation: Grouping consumers by segmentation variables. When choosing segmentation features, you should focus on those that allow you to clearly distinguish different requests regarding the product. Once market segments have been identified using one or more segmentation variables, every effort must be made to understand the buyer characteristics of those segments.

2. Selection of target segments, in which it is necessary to decide how many and what groups of customers will be served.

3. Positioning, when it is decided how and where the product will be positioned and what the marketing program will be within the target segment. Product positioning is the decisions and actions aimed at creating and maintaining the company's product concept in the eyes of consumers. Positioning will be successful when target customers begin to perceive the product as a means of satisfying their desires and expectations. To understand the opinions of customers, they resort to drawing up perception maps. The metrics on which this map is based should be determined through a customer survey. Confirmatory research is carried out to identify the location of products, brands or companies and then constructs a visual graph. An example of such a graph for the automotive industry is shown on the left.

Concept of market segmentation

Selecting target market segments

Product positioning.

Market niche.

1.The concept of market segmentation

In modern conditions of market development, it is almost impossible to satisfy all consumers with one product or service. Everyone has their own desires, interests and expectations from the product. Therefore, companies need to take into account differences in consumer requirements and expectations when developing a marketing strategy and marketing mix. This can be done by dividing the market into specific groups, each of which contains consumers with common characteristics and similar needs for certain goods and services. Identifying these groups is called market segmentation.

An enterprise in its activities can focus on the entire market or on individual market segments. The task of marketing is to help an enterprise find its place in the market.

Under segmentation understand the division of the market into separate segments that differ either in their parameters and or in their response to certain types of activities, or in some other way.

Market segment- this is a specially selected part of the market, a group of consumers, goods or enterprises that have some common characteristics.

Market segmentation is one of the functions in the system of marketing activities and is associated with the implementation of work to classify buyers or consumers of goods located on the market or introduced to it. Main goal of segmentation- “revive” by focusing on the consumer the designed, manufactured and sold flow of goods (services) in a specific market segment.

The division of the underlying market is carried out in two stages, which correspond to two levels of market division.

At the first stage, which is called macro-segmentation, the “product market” is identified.

In the second stage, called microsegmentation, consumer segments are identified within each previously identified market (i.e., selecting small areas of the base market to apply the company's marketing efforts to them).

The segmentation process consists of the following steps:

Analysis of the company's market and marketing capabilities

Study of segmentation criteria

Market segmentation

Market environment analysis and target market selection

Selection and planning of a company's behavior strategy in the market

Assessing attractiveness and selecting target market segments

Positioning of products on the market

Marketing mix planning

Development of a marketing mix

Organization of the company’s activities in a new market segment

Segmentation goals:

The best satisfaction of the needs and requirements of people, customization of goods according to the wishes of the buyer

Strengthening competitive advantages

Ensuring rationalization of costs for production and sales of products

Orientation of all marketing work towards a specific consumer

Linking a scientific and technical company with consumer needs

Avoiding competition by moving into an untapped segment.

Pre-segmentation– the initial stage of marketing research, focusing on studying the maximum possible number of market segments.

Final segmentation– the final stage of market analysis, the implementation of which is regulated by the capabilities of the company itself and the conditions of the market environment. It is associated with the search for optimal market segments in order to position products there that meet consumer demand and the capabilities of the company.

Depending on the type of consumer of goods or services, a distinction is made between consumers of consumer goods and consumers of goods for industrial and technical purposes.

Thus, the consumer segment in a firm's product market consists of consumers with similar needs and behavioral or motivational characteristics, which creates favorable marketing opportunities for the firm.

The main goal of segmentation is to ensure targeting of the product being developed, produced and sold. By means of it, the basic principle of marketing is implemented - consumer orientation.

One of the main areas of marketing activity is market segmentation, which allows an enterprise to accumulate funds in a certain area of ​​its business. To date, the economic literature has quite clearly defined the concepts of target market and target segment, the identification of which is the main goal of market segmentation. Target market is a firm's potential market, which is determined by a population of people with similar needs for a particular product or service, sufficient resources, and the willingness and ability to buy [I]. A target segment is a homogeneous group of consumers in a company's target market that has similar needs and purchasing habits in relation to the company's product.

Thus, market segmentation– this is an activity to identify potential groups of consumers of a specific product of an enterprise.

Market segmentation scheme

The general scheme of market segmentation is presented in Fig. 1.

This market segmentation scheme is of a general nature and can be applied when planning various areas of marketing activities.

Note that the above market segmentation scheme corresponds to the approach proposed by Lambin and takes into account macro-segmentation to identify the base (otherwise, target) market and micro-segmentation to determine the target segment of the enterprise. This scheme, in turn, is a development of segmentation schemes proposed in other studies.

Rice. 1. General scheme of market segmentation

Let us consider in detail the individual stages of the general market segmentation procedure.

Segmentation principles

To conduct successful market segmentation, it is advisable to apply five principles tested in practice:

differences between segments, similarity of consumers, large segment size, measurability of consumer characteristics, reachability of consumers.

Principle differences between segments means that as a result of segmentation, groups of consumers that differ from each other should be obtained. Otherwise, segmentation will be implicitly replaced by mass marketing.

Principle consumer similarities in a segment provides for the homogeneity of potential buyers in terms of purchasing attitudes towards a specific product. Consumer similarity is necessary so that an appropriate marketing plan can be developed for the entire target segment.

Requirement large segment size means that target segments must be large enough to generate sales and cover the costs of the enterprise. When assessing the size of a segment, one should take into account the nature of the product being sold and the capacity of the potential market. Thus, in the consumer market, the number of buyers in one segment can be measured in tens of thousands, while in the industrial market a large segment may include less than a hundred potential consumers (for example, for cellular or satellite communication systems, for consumers of power engineering products, etc.).

The measurability of consumer characteristics is necessary for targeted field marketing research, as a result of which it is possible to identify the needs of potential buyers, as well as study the reaction of the target market to the marketing actions of the enterprise. This principle is extremely important, since the distribution of goods “blindly”, without feedback from consumers, leads to the dispersal of funds, labor and intellectual resources of the selling company.

Principle reachability of consumers means the requirement for communication channels between the selling company and potential consumers. Such communication channels can be newspapers, magazines, radio, television, outdoor advertising, etc. Reachability of consumers is necessary for organizing promotional campaigns, or informing potential buyers about a specific product: its characteristics, cost, main advantages, possible sales, etc.

The basis of the market segmentation procedure, along with the application of segmentation principles, is the informed choice of the appropriate segmentation method.

Segmentation methods

The most common methods of market segmentation are the method of groupings according to one or more characteristics and methods of multivariate statistical analysis. Let us note the features of these methods based on the results presented in.

The grouping method consists of sequentially dividing a set of objects into groups according to the most significant characteristics. A certain characteristic is singled out as a system-forming criterion (the owner of the product, the consumer intending to purchase the product), then subgroups are formed in which the significance of this criterion is much higher than for the entire set of potential consumers of this product. By successive splits into two parts, the sample is divided into a number of subgroups.

In Fig. Figure 2 shows a diagram of sequential breakdowns using the AID (automatic interaction detector) method, which has become widespread in segmentation procedures. Similar methods of enumerating options are often used in market segmentation. For example, in Karpov’s research, a similar approach is proposed as a priority method for selecting a target market.

For segmentation purposes, multidimensional classification methods are also used, when separation occurs according to a complex of analyzed characteristics simultaneously. The most effective of them are methods of automatic classification, or otherwise cluster analysis.

Rice. 2. Classification scheme using the AS method

In this case, classification schemes are based on the following assumptions. Consumers who are similar to each other in a number of ways are grouped into one class. The degree of similarity among consumers belonging to the same class should be higher than the degree of similarity among people belonging to different classes.

Using this method, the typification problem is solved with the simultaneous use of demographic, socio-economic and psychographic indicators. As an example, let us note the solution to the problem of market segmentation by constructing a consumer typology, which means dividing consumers into typical groups that have the same or similar consumer behavior. The construction of a typology is the process of dividing the studied set of objects into fairly homogeneous and stable groups in time and space.

In reality, objectively, there are fairly homogeneous groups (classes) of consumers with a characteristic type of consumer behavior for each of them. Using multivariate statistics methods, such groups can be identified and analyzed.

For example, in Goltsov’s study, the tractor equipment market was segmented using multifactor modeling, which made it possible to adjust the enterprise’s production plans and forms of product sales.

As follows from the above, after determining the principles and methods of segmentation, the main step before carrying out the segmentation itself is the selection of reasonable criteria for this procedure. Obviously, these criteria will be different for the consumer and industrial markets. Let's consider them separately.

Criteria for consumer market segmentation

The consumer market is the market of final consumers who purchase goods for personal, household or family use.

Consumer market segments can be identified based on regional criteria, demographic criteria, and consumer lifestyle criteria.

Regional criteria represent the main distinctive characteristics of cities, regions, and regions. A business may use one or more demographic characteristics to segment its market. Segmentation strategies emphasize highlighting and exploiting geographic differences.

The main regional criteria are as follows.

• Region location may reflect differences in income, culture, social values, and other consumer factors. For example, one area may be more conservative than another.
• Population size and density shows whether there are enough people in the region to provide sales and facilitate marketing activities.
• Transport network of the region is a combination of mass public transport and highways. A region with a limited network of mass public transport is likely to have different specific needs than a region with a well-developed transport and car system.
• Climate can also be a criterion for market segmentation, for example, for companies specializing in heaters and air conditioners.
• Business structure in the region includes targeting tourists, workers and employees, and other persons living in the region. Tourists are attracted by hotels and campsites, workers by catering establishments with fast service, and city residents by department stores. Large cities usually have shopping districts, while suburbs have shopping centers. Each shopping area or center has its own distinct image and mix of different stores.
• Media accessibility varies by region and has a significant impact on a company's ability to segment. For example, one city has its own television station, while another does not. This will make it difficult for retailers in the second city to target consumers in the surrounding area. Many national publications, especially newspapers and magazines, now have regional editions or inserts to allow companies to advertise to target their respective regional audiences.
• Dynamics of regional development may be characterized by stability, decline or growth. A company will likely face an untapped market in a growing region and a saturated market in a stable or declining region.
• Legal restrictions vary depending on the city and region. A firm may decide not to enter a market in which its activities are limited. However, if she decides to act on it, she must comply with legal requirements.

Demographic criteria represent the basic characteristics of individuals or groups of people. They are often used as a basis for segmentation because purchasing requirements largely depend on them. Personal demographic characteristics may include the following.

• Age categories- this is how you can divide people, for example, into children, adolescents, adults and the elderly. Age is often used as a segmentation factor.
• Floor is also an important segmentation variable, especially for products such as textiles, cosmetics, jewelry, personal services such as hairdressing.
• The level of education can also be used to identify market segments. Low-educated consumers spend less time shopping, read less, and prefer well-known brands to a greater extent than consumers with specialized or higher education. The latter are more likely to compare stores, read non-commercial information sources, and purchase the product they consider to be the best, regardless of whether it is well known or not.
• Mobility characterizes how often the consumer changes his place of residence. Mobile consumers rely on national brands and stores, and non-personal information. Non-mobile consumers rely on acquired knowledge about the differences between individual stores and their own information.
• Income differentiation divides consumers into low, middle and high income groups. Each category has different resources to purchase goods and services. The price a company charges helps determine who it is targeting.
• Consumer profession may influence purchases. For example, a construction worker has different clothing and food requirements than those who sell computer equipment. The first ones put on flannel shirts, jeans, work boots and bring their own lunches. The latter wear three-piece suits, fashionable shoes and take clients to restaurants.
• Marital status and family size can also form the basis of segmentation. Many companies target their products either to single people or to family people. Segmentation by family size gives rise, for example, to different product packaging sizes.
• Personal demographic profiles are also often used when planning a segmentation strategy. Such profiles take into account several factors. For example, gender, education, income at the same time (for the sale of cars of a certain class).

Lifestyle consumers determines how people live and spend their time and money. By developing lifestyle profiles, firms can target distinct market segments. Consumer lifestyle criteria that are important in market segmentation may be as follows.

• Social groups and stages of the family life cycle are the first possible criteria for market segmentation.
• Degree of product use refers to the volume of a good or service that a consumer purchases. The consumer can use just a little, a little or a lot. In the 1960s, Dick Warren Tweld coined the term “heavy half” to describe a market segment that accounts for a disproportionate share of total sales of a product or service. In some cases, less than 20% of consumers make more than 80% of purchases.
• Experience of use refers to a consumer's prior experience with a product or service. The behavior of inexperienced consumers differs significantly from the behavior of consumers with significant experience. In addition, the firm must distinguish between non-users, potential users and regular users. Each of these segments has different needs.
• Brand loyalty can have three forms: absent, definite and complete. If it is absent, then the consumer does not prefer anything, he is attracted by sales, he often changes brands and is ready to try new products and services. If there is a certain loyalty, then the consumer prefers several brands, he is attracted by discounts on them, he rarely changes them and usually does not try to try new ones. With full commitment, the consumer insists on one brand, is not attracted by discounts on others, and never changes brands or tries a new one.
• Personality types– a criterion for segmenting the market, for example, into introverts and extroverts, those who are easily convinced and those who are difficult to convince. Introverted consumers are more conservative and systematic in their shopping behavior than extroverted ones. Hard-to-persuade people react negatively to intense personal selling and are skeptical of advertising information. Easily persuaded people can be persuaded to buy with the help of intensive marketing methods; they are amenable to advertising information.
• Attitude towards the company and its offers. Neutral attitude (I've heard of Brand X, but I don't know anything about it) requires intensive information and convincing promotion. A positive attitude (brand X is the best product on the market) requires reinforcement in the form of subsequent advertising and personal contacts with consumers. A negative attitude (brand X is much worse than brand Y) is difficult to change; it requires improving the product and the company's image. The best thing here, apparently, is to ignore this segment and concentrate efforts on the first two; When segmenting, a firm is not required to satisfy all groups at the same time.
• Motives for shopping can divide the market into advantage segments. Benefit segmentation was introduced in 1968 by Russell Haley: “The basis of segmentation is the idea that the benefits that people seek in consuming a given product are the primary reasons for the existence of real market segments.”
• Importance of purchase also different for different consumers. For example, a person living in the suburbs is likely to consider purchasing a car more important than a person living in a city with access to public transport. Buying a refrigerator is more important for the family whose one is broken than for the one for whom it functions well.

Usually, a combination of demographics and lifestyle factors necessary for a company to identify and describe its market segments. Using a set of factors allows you to make the analysis more meaningful and meaningful.

Let us now evaluate possible criteria for segmenting the industrial market.

Industrial market segmentation criteria

The industrial market is a market of consumer organizations that purchase goods for further production and resale to other consumers.

The criteria for segmenting the industrial market, in principle, can be similar to the criteria for segmenting the consumer market.

Thus, in accordance with the work of Evans and Berman, regional criteria should include characteristics of the region where the consumer organizations are located. “Demographic” criteria may include area of ​​specialization, resources, existing contracts, past purchases, size of orders, characteristics of decision makers. Lifestyle factors include the way the organization operates, brand loyalty, reasons for purchasing, and the social and psychological characteristics of employees. These parameters can provide a basis for market segmentation.

A more rigorous procedure for segmenting the industrial market, based on five groups of criteria operating on the principle of a nested hierarchy, is presented in the work. Moving from external to internal criteria, these groups have the following form.

Industry sector,

Firm size

Geographical position.

2) Performance characteristics:

Technology used

Use of this product,

Technical and financial resources.

3) Purchasing method:

Availability of a purchasing center,

Hierarchical structure,

Buyer-seller relationship

General procurement policy,

Purchasing criteria.

4) Situational factors:

Urgency of order fulfillment,

Application of the product,

Order size.

5) Personal qualities of the buyer.

As one moves into this hierarchical structure, the observability and stability of the segmentation criteria change. It is recommended that segmentation begin at the outer levels because here the data is more accessible and the definitions are clearer.

In the most general case, the criteria for segmenting an industrial market depend on the type of production and on the end use of a particular industrial product. The functions of the product in the production process are also important, otherwise, the inclusion of this product in the groups of capital equipment, auxiliary equipment, components, consumables, raw materials or production services.

In accordance with the general segmentation scheme, we will now evaluate the actual procedures for selecting the target market and target segment.

Target Market Selection

One of the most important stages of market segmentation, after determining the criteria, principles and methods of segmentation, is the selection of the target market. In Lambin’s monograph, this stage was called macrosegmentation, as opposed to microsegmentation, dedicated to the selection of the target segment. Let us note the main points of such macro-segmentation in accordance with the results of Lambin’s work.

Implementation of a market segmentation strategy must begin with defining company mission, which describes its role and main function in a consumer-oriented perspective. Three fundamental questions should be asked: “What business is the firm in?”, “What business should it be in?”, “What business should it not be in?”

This gives rise to the concept of a firm's target (or base) market, which is a significant group of consumers with similar needs and motivational characteristics that create favorable marketing opportunities for the firm.

According to Abell's work, a firm's target market can be defined along three dimensions:

• technological, describing technologies that can meet market needs (“how?”);
• functional, defining the functions that must be satisfied in a given market (“what?”);
• consumer, which determines the groups of consumers who can be satisfied in a given market (“who?”).

Graphically, this can be represented by a three-dimensional diagram shown in Fig. 3.

Fig 3. Target market structures

Using this approach, a distinction can be made between three different structures: the market for one technology (industry), the market for one function (technology market) and the product market.

An industry is defined by technology, regardless of the function or customer groups associated with it. The concept of industry is the most traditional. At the same time, it is the least satisfactory, since it is focused on supply rather than demand. Thus, such a category is appropriate provided that the functions and consumer groups under consideration are highly homogeneous.

The technology market covers a set of technologies to perform one function and for one group of consumers. This concept is close to the concept of a basic need and emphasizes the interchangeability of different technologies for the same function. Addressing the technology market is especially important for selecting research and development directions.

A product market is at the intersection of a group of consumers and a set of functions based on a specific technology. It is consistent with the concept of a strategic business unit and responds to the realities of supply and demand.

Choice market coverage strategies is made on the basis of an analysis of competitiveness in relation to each segment. An enterprise can choose the following different strategies to reach its target market:

• concentration strategy– the enterprise gives a narrow definition of its field of activity in relation to the product market, function or group of consumers;
• functional specialist strategy– an enterprise prefers to specialize in one function, but serve all groups of consumers interested in this function, for example, in the function of storing industrial goods;
• customer specialization strategy– the enterprise specializes in a certain category of clients (hospitals, hotels, etc.), offering its clients a wide range of products or complete equipment systems that perform additional or interrelated functions;
• selective specialization strategy– release of many goods in different markets that are not related to each other (manifestation of production diversification);
• full coverage strategy– offering a full range that satisfies all consumer groups.

In most real-life cases, strategies for reaching a target market can be formulated along only two dimensions: functions and consumer groups, since enterprises, most often, own only one specific technology, reflecting their industry affiliation.

If the company owns various technologies, then the choice of the target market and the strategy for reaching it will also be determined by the technological dimension of the market.

After choosing a target market, it is advisable to move on to more detailed segmentation.

Selecting a target segment

The selection of the target segment is based on the segmentation criteria for consumer or industrial markets, discussed in detail above.

After selecting the appropriate market segments, the next step is to define a strategy to reach the target segment. In accordance with the results of the work, the following three areas of activity of the enterprise in the target segment can be distinguished:

A) undifferentiated marketing strategy, which consists in ignoring differences between market segments without taking advantage of segmentation analysis. The point of this standardization strategy is to save on production costs, as well as on inventories, sales and advertising;

b) differentiated marketing strategy, implemented in the form of marketing programs adapted for each segment. This strategy allows businesses to operate in multiple segments with a customized pricing, distribution and communication strategy. Sales prices are set based on the price sensitivity of each segment;

V) concentrated marketing strategy, manifested in the concentration of enterprise resources on meeting the needs of one or more segments. This is a specialization strategy that can be based on a specific function (functional specialist) or on a specific group of customers (customer specialist). The validity of a focused strategy depends on the size of the segment and the level of competitive advantage achieved through specialization.

The choice of any of these three market coverage strategies is determined by:

The number of identified and potentially profitable segments;

Enterprise resources.

If the enterprise's resources are limited, then the concentrated marketing strategy is apparently the only possible one.

Product positioning

Product positioning is the optimal placement of a product in the market space.

It is necessary to distinguish between segmentation and positioning, although the latter parts are included in market segmentation. The result of market segmentation is the desired characteristics of the product. The result of positioning is specific marketing actions to develop, distribute and promote a product to the market.

Positioning is the development and creation of a product’s image in such a way that it takes a worthy place in the buyer’s mind, different from the position of competitors’ products.

Positioning is a set of marketing elements with which people need to convince that a given product is created specifically for them and that it can be identified with their ideal.

Let us note the main strategies for positioning a product in the target segment:

• positioning based on the distinctive quality of the product;
• positioning based on the benefits of purchasing a product or solutions to a specific problem;
• positioning based on a particular way of using the product;
• positioning aimed at a specific category of consumers;
• positioning in relation to a competing product;
• positioning based on a break with a specific product category.

Thus, the positioning of a product in the target segment is associated with highlighting the distinctive advantages of the product, satisfying specific needs or a certain category of customers, as well as with the formation of a characteristic image of the product and/or the company.

The implementation of product positioning is directly related to the development of a marketing plan, which should include marketing research, product development, pricing policy, methods of distribution and promotion of the product. Thus, market segmentation, the result of which is the identification of homogeneous groups of consumers with similar needs and purchasing habits in relation to a specific product, allows the enterprise to concentrate funds on one or several commercial areas of activity.

Literature

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Market segmentation (MS) is the division of the target audience (TA) into groups. Each group includes consumers with the same characteristics and needs. This is necessary when forming a marketing strategy. Allows you to see the needs of all consumer groups and satisfy them.

What does market segmentation mean?

When producing and selling products, a company can target both all segments and individual consumer groups. Segmentation allows an organization to determine its place in the market. Its main goal is to increase product sales and target different consumers when developing products.

Segmentation is divided into two stages:

1. Macro segmentation. At this stage, the market in which the product will be sold is determined.
2. Microsegmentation. Within a certain market, consumer segments are determined. That is, small areas of the market are searched to form an effective marketing strategy.

Working with small groups of consumers allows you to find more subtle marketing tools.

Objectives of market segmentation

Market segmentation is a tool that should not be ignored. Its effectiveness is very high. Consider the goals of market segmentation:

• Product development based on the needs of the target audience.
• Satisfying consumer needs.
• Formation of competitive advantages.
• Orientation of marketing strategy to the actual consumer.
• Formation of a scientific and technical base based on existing requests.
• Transition to a narrow segment with low competition.
• Customer focus.

Market segmentation is a tool that is suitable for both small and large companies.

Stages of segmentation

Segmentation accuracy is a fundamental point. The degree of effectiveness of the marketing strategy depends on this. If consumer groups are defined incorrectly, it will be impossible to select an adequate method of increasing sales. Let's consider the stages of market segmentation:

1. Research of the company's market resources.
2. Formation of segmentation criteria.
3. Segmentation.
4. Market research.
5. Formation of a company's behavior strategy in market conditions.
6. Selection of specific market segments.
7. Product positioning.
8. Formation of a marketing strategy.
9. Organization of the company's work in a new segment.

At the preliminary segmentation stage, the maximum number of suitable market segments is studied. At the final segmentation stage, a limited number of segments are explored in which it is planned to continue working.

Selecting a Specific Segment

As a rule, the company specializes in 1-2 segments. It is not recommended to select a larger number of segments. This will reduce the targeting of sales. Once a segment is selected, 5 options are possible:

1. Concentration on one segment.
2. Working to satisfy one need that is common to all consumer groups.
3. Working to meet all needs within one group.
4. Concentration on several segments.
5. Satisfying the needs of representatives of the entire market.

ATTENTION! The most effective marketing method is to focus on one group.

Market segmentation criteria

Segmentation criteria are indicators that allow you to determine the reasonableness of choosing a particular group. With their help, you can justify your marketing strategy. Let's consider the main criteria, as well as their characteristics:

• Differentiated consumer feedback. Representatives of each group should respond to the proposed product in a similar way.
• Adequacy. The volume of products that can be sold within a given time period is determined. In this case, such indicators as the number of consumers and the area of ​​the selected segment are taken into account.
• Availability. Resources are being identified to expand the sales area of ​​products.
• Measurability. Availability of resources for segment size research.
• Materiality. Each group is analyzed to determine whether it can be considered a segment.
• Compatibility. The degree of compatibility of the segment with the market captured by competitors is checked.
• Profitability. The profitability of working with the selected group is determined.
• Competition. The level of competition is analyzed.

You can select all or several criteria for analysis.

Signs of market segmentation

The following segmentation features are distinguished:

• Geographical. The market is divided by geography. That is, the company chooses in which geographic area the products will be sold. This takes into account the climate of the area, population density, and consumer characteristics. For example, it makes no sense to expect high demand if warm jackets are sold in areas with a very warm climate.
• Demographic. Representatives of the target audience are divided into groups according to the following criteria: gender, age, marital status, income level, education, etc.
• Psychographic. The group is classified based on the following characteristics: lifestyle, status, personal characteristics. It is possible to perform segmentation based on personality types. For example, consumers are divided into introverts and extroverts. Depending on the personality type, the optimal way to influence the consumer is selected.
• Consumer motives. At this stage, consumer preferences are determined and priorities are set when making a purchase. It is advisable to determine the value system of the target audience.
• Behavioral. The actual behavior of the buyer is analyzed. For example, the volume of purchases made by the consumer is determined. Loyalty indicators are calculated.

The listed characteristics allow us to divide the existing target audience into groups.

Development strategies taking into account market segmentation

Based on market segmentation, the further development strategy is determined. You can choose one of the following strategies:

• Unified. In this case, segmentation plays virtually no role. The advertising strategy will be uniform. When developing and selling a product, we focus on the most general characteristics of the consumer. This strategy is relevant for cases where the product does not have distinctive features.
• Differentiated. A specific product is selected for each consumer group. The distinctive features of this method are a higher probability of making a purchase and a higher cost of the product.
• Concentrated. Several consumer groups are selected, and all the company's efforts are concentrated on them. The differences of this strategy: increased market potential, prestige of products, ensuring increased profitability of production. The strategy is suitable for highly specialized industries.
• Atomization. The target audience is broken down into the smallest units. The division limit is the individual consumer. This strategy makes sense when selling expensive products.

The choice of strategy depends on the characteristics of the company and the product itself.

Market Segmentation Example

The company produces protein shakes. Segmentation is carried out with the aim of increasing sales. The research method determines the groups that purchase products. This:

• Women who want to lose weight.
• Women trying to gain muscle mass.
• Professional bodybuilders.

The company is very small, and therefore it is subject to competition. To reduce competition, a decision is made to select one group. In this case, this group will be professional bodybuilders. The choice is due to the fact that this group needs high-quality sports nutrition, but few manufacturers are focused specifically on professional athletes. Products are tailored to the needs of a specific group.

Segmentation of a market is its division into separate segments that differ in the sales capabilities of the manufacturer’s goods.

A market segment is a large group of buyers identified by certain characteristics (similar needs, purchasing power, region of residence, consumer priorities and habits). A market segment consists of consumers who respond in the same way to the same set of marketing incentives. A market segment is a part of a market, a group of consumers of products that have certain similar characteristics and are significantly different from all other groups and market sectors.

The purpose of segmentation is to identify relatively homogeneous needs for a product (service) in each group of buyers and, in accordance with this, orient the organization’s product and sales policy.

The selected segments should be:

1. specific, i.e. have a clear set of needs and respond in a similar way to the product (service) offered;

2. sufficiently significant in size;

3. available for marketing activities;

4. quantitatively measurable;

5. Used for a long period of time.

Types of segmentation depending on the nature of its implementation, on the type of consumers of goods/services:

• market macro-segmentation - markets are divided by region, degree of industrialization, etc.;
• micro-segmentation – the formation of consumer groups (segments) of one country or region according to more detailed characteristics (criteria);
• segmentation in depth - the segmentation process begins with a wide group of consumers, and then gradually deepens it depending on the classification of end consumers of the product or service;
• Breadth segmentation - starts with a narrow group of consumers, and then expands depending on the purpose and use of the product;
• preliminary segmentation is the initial stage of marketing research, focusing on studying the maximum possible number of market segments;
• final segmentation is the final stage of market analysis, the implementation of which is regulated by the capabilities of the company itself and the conditions of the market environment.

The goal of the first stage, called macro-segmentation, is to identify “product markets,” while the second stage, called micro-segmentation, aims to identify consumer “segments” within each previously identified market.

Target market segment – ​​one or more segments of a specific market that are most significant for marketing activities:

1. concentration on a single segment, decide to serve only one market segment (a group of middle-aged people);

2. orientation to consumer needs; the company can focus on satisfying any one consumer need (one product for all types of buyers);

3. orientation to a group of consumers;

4. servicing several unrelated segments; a company may decide to serve several market segments that are loosely related to each other, except that each of them represents an attractive opportunity for the company;

5. coverage of the entire market; a company may decide to produce a full range to cater to all market segments.

When selecting target segments, company managers decide whether they will concentrate their efforts on one sector or several, on a single product (market) or on a mass market. A firm may choose to address the entire market or focus on one or more specific segments within its core market.

The so-called targeted marketing is of particular importance in marketing activities. This is the process of segmenting the market, selecting the target segment(s) based on its results and positioning the company's product in the selected target segment by developing and implementing an appropriate marketing mix. Target marketing – differentiation of market segments, selection of one or more segments and development of products and complexes.

Stages of targeted marketing:

• Market segmentation – determining the principles of market segmentation, compiling profiles of the resulting segments.
• Selection of target market segments - assessment of the degree of attractiveness of the resulting segments, selection of one or more segments.
• Positioning of a product on the market - a decision on the positioning of a product in each of the target segments, development of a marketing mix for each target segment.

Selection of market segmentation criteria, i.e. parameters by which market segmentation is carried out.

1. Quantitative boundaries - the capacity of the segment - how many goods and at what value can be sold on it, to how many actual and potential consumers, what is the area of ​​the segment, what resources will need to be used to work in this segment.

2. Availability of a segment - the ability of an enterprise to obtain distribution and sales channels for products, conditions for storing and transporting products to consumers in this segment.

3. Information richness of the segment - is it possible to obtain the necessary information to create a data bank for the segment, are there closed zones.

4. Segment importance – determining how realistically a particular group of consumers can be considered as a market segment, how stable it is in terms of the main unifying characteristics.

5. Segment profitability - determines how profitable work in this segment will be for the enterprise.

6. Compatibility of the segment with the market of the main competitors - to what extent are the main competitors ready to sacrifice the chosen market segment, to what extent does the promotion of products affect their interests?

7. Protection from competition - the management of the enterprise must assess its ability to withstand the competition with possible competitors.

8. Effectiveness of work in the selected segment - checking whether the enterprise has the necessary experience in the selected segment, checking how ready engineering, production and sales personnel are to effectively promote the product in this segment.

At the macro-segmentation level, only general characteristics are taken into account, especially when it comes to markets for industrial goods. Consumer products often require more nuanced criteria such as age groups, benefits sought, purchasing behavior or lifestyle. Determining them is the task of microsegmentation.

Technologies. Various technological know-how that provide various functions are discussed here. For example, paint or wallpaper for the function of home interior decoration, road, air, rails or sea for the international transport of goods, bitumen or plastic films for the function of roof impermeability, X-rays, ultrasound and computed tomography for the function of medical diagnostics, etc.

Functions or combinations of functions. We are talking about the needs that a product or service must satisfy. Examples of functions include: interior decoration of homes; international freight transport; roof waterproofing; corrosion protection; teeth cleaning; deep and subsurface drilling; medical diagnostics, etc. Features can also be defined as sets of benefits sought by different consumer groups.

Classification characteristics: age, marital status, level of education, income level, attitude towards a new product (service), lifestyle, social status, etc.

1. geographic segmentation criterion (region, districts, population density, climate);

2. demographic, socio-economic (gender, age, family size, stage of family life cycle, level of education, income level, occupation, religious beliefs, race, nationality, social status (senior - senior management), average (entrepreneurs, managers, independent workers: lawyers, journalists, teachers, office workers and workers, working pensioners), lower (non-working pensioners, low-skilled workers, unemployed). Needs and preferences, the intensity of consumption of goods are often associated with demographic characteristics. They are easier to measure;

3. psychographic criterion – social class, temperament, personality type (addicted nature, lover of doing “like everyone else”, authoritarian nature, ambitious nature), lifestyle (sedentary, nomadic);

4. behavioral – reason for making a purchase (routine purchase, special occasion), user status (non-user, former user, potential user, novice user, regular user), intensity of consumption (weak consumer, moderate consumer, active consumer), degree of commitment (unconditional adherents, tolerant, fickle, wanderers), by the benefits sought (quality, service, savings), by speed of response; by degree of need (strong, low, average); by degree of readiness to buy (ignorant, aware, informed, interested, willing to buy, intending to buy); by level of purchase intensity (regular, irregular), attitude towards the product (enthusiastic, positive, indifferent, negative, hostile).

Marketing market segmentation is subordinated to the strategic goals of the product manufacturer and is aimed at:

• increasing market share;
• mastering new markets;
• weakening the position of competitors;
• maintaining their positions in the most important markets, etc.

The most used methods in segmentation:

1. Grouping method. It consists of a consistent breakdown of a set of objects into groups according to the most significant characteristics. the entire base market is divided into groups in stages - at each stage of sequential division only one segmentation criterion is used.

2. Multidimensional classification method (“tabular”). Classification is carried out according to a complex of analyzed characteristics simultaneously. The base market is divided into groups of consumers according to several simultaneously used segmentation criteria. The results obtained are presented in table form.

Based on the results of segmentation, “profiles of consumer segments” should be obtained. These are the corresponding descriptions of each of the resulting consumer groups. For example, “the profile of the segment – ​​consumers of French perfumes” may sound like this: these are young ladies with an income per family member of at least 24,000 rubles per month, with an active lifestyle, with high brand loyalty and an average propensity for risky purchases...”

After identifying market segments, it is necessary to assess their attractiveness and select one or more segments for development. Criteria for assessing the attractiveness of a segment: size and speed of change of the segment; structural attractiveness; goals and resources of the organization itself.

Target market (basic) – the most important and promising segment of the product market selected on the basis of segmentation. Actions of the organization when choosing target segments:

1. Concentrate efforts aimed at selling one product (service) in one segment.

2. Offer one product (service) to all market segments.

3. Offer all goods (services) to one market.

4. Offer different products (services) for some selected segments.

5. Ignore the results of segmentation and supply all manufactured goods (services) to the entire market.

Positioning is the development of a product (service) and the creation of an image that, in the buyer’s mind, would compare favorably with competing products. Positioning is the logical continuation and completion of the market segmentation process and the starting point for detailed planning and programming of the marketing mix.

The purpose of positioning is to help potential buyers distinguish a product from among its analogue competitors on some basis and give it preference when purchasing. Determine the possible place of the product on the market at present and in the future. Strengthen competitive positions in a specific market segment by creating preferred incentives for potential buyers to purchase it.

The main approaches to product positioning are based on:

1) on certain advantages of the product (service);

2) to meet specific needs or special uses;

3) with the help of a certain category of consumers who have already purchased a product (service), or by comparison;

4) using stable ideas.

Options for an organization to determine its market position:

• positioning itself next to a competitor and starting to compete for market share.
• creating a product of market novelty, with the help of which you can fill the existing “gap” in the market in the absence of competition.

Source - Marketing: educational manual / comp. I.V. Ilyicheva. – Ulyanovsk: Ulyanovsk State Technical University, 2010. – 229 p.