Marketing Plan – Market Segmentation

Marketing Plan – Market Segmentation: Market segmentation is usually not as straightforward as it first appears. Most markets are segmented in more than one way. If you overlook a particular type of market segmentation you could miss a possible major advantage for your business, especially if you are trying to enter a new market.

 

First look to buyers to understand market segmentation. What products or services do buyers tend to group together and which do they tend to group separately? It is important to sort out which product and service differences are distinct enough to qualify as a unique market segment or niche. There is no easy hard and fast rule.

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Instead think about the buyer’s perspective: which products and services compete closely (they are probably in the same market niche), which products and services compete distantly (they are probably in different market niches) and which products and services don’t compete at all (they are probably in different market segments). Understanding market segmentation is important not just for developing an overall business strategy but also for determining many of your business tactics such as industry advertising and sales tactics