Market segmentation is defined as a company which are trying to divide the market into different parts according to its distinct needs,resources,locations and buying attitudes. It have four main tpoics:segmenting consumer markets,business markets,international markets and requirements for effective segmentation. I think the most interesting part of market segmentation is consumer markets segmentation.
Different consumers have different needs according to geographic,demographic,psychographic and behavioural variables.If the consumer markets can be divided extinctly according tothose four parts, it will become easier for the company to meet the different needs of the consumers to raise the efficiency of the company and can also make their production comprehensive. It is a good way to improve the economic level of a company. Market targeting is the step after market segmentation.
After the market is divided into different part, the company will evalute the various segments, trying to decide how they can serve the segmens best.I also has three factors: segment size and growth,segment structural attractiveness and company objectives and resources. In my opinion, I think the factor that empahsize on company’s obkectives and resources is the most interesting part.
Although the company may have the ambitious to develop its market in a very attractive segment, it is likely to be dismessed becaused of the limit of the cmpany’s resources and objectives. If the company lack the skills or the company ignored its long-run objectives, it is hard to succeed.Position is the way the product is defined by consumers on important attitudes. The place the product occupies in consumers’ mind is accordng to its competing products. Consumers nowadays like to buying products according to the brand position in their mind, such as safety, confort, luxury and so on, which I think is a way I am interested in.
According to this phenomenon, the company care trying to establish their own brand image in the consumers mind in order to attract them.I think the most difficult thing for me to understand in market segmentatin is how a company can divide so many consumers in different groups. Because in todays society, peoples needs are various, it is hard to gather everyone’s interest in one place.
Also in position, i is hard for me to underatand how a company can extinct themselves with thier compete company with the brand. It is usual for people to compare the products before they buying them. What can we do to make the consumers choose our product with the brand in the consumers’ mind?