Market segmentation is a process in which a firms market is partitioned in sub-markets. The objective is to have the response of the marketing activities, products&services vary greatly across segments but have little variation in each segment. It should answer the questions: "Which is (are) my target markets?". The most important question in segmentation is //''"Do the customers in the target segment want the perceived value that my positioning is trying to deliver MORE than other segments''//

Other important questions are:
* How can the segment be reached?
* How quickly can the segment be reached?
* How big is the segment?
* What are likely impacts of changes in the environment (economic, lifestyle, legal)?
* What is the current and future competition look like?

When auditing the segmentation of a company one of the most important issues is: //''"How well is the segmentation reflected in all the other marketing decisions that the venture makes"''//

<<tiddler [[Customer Segmentation Criteria]]>>
<<tiddler [[Profiling Variables]]>>

The [[e-Business Market Segmentation Matrix]] helps to identify participants in an e-Business environment.

See also:
[[Resegment an existing market as a low cost entrant]]
[[Resegment an existing market as a niche player]]

Part of [[M6-S7 - Reading - Lodish - Positioning, Targeting and Segmentation]]
Part of [[M8-S1 - Reading - Strategies for E-Business - Chapter 3 - External Analysis]]
bag
mbi_public
created
Sat, 25 Dec 2010 11:11:37 GMT
creator
dirkjan
modified
Sat, 25 Dec 2010 11:11:37 GMT
modifier
dirkjan
tags
Term
creator
dirkjan