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To get a product or service to the right person or company, a marketer
would firstly segment the market, then target a single
segment or series of segments, and finally position within
the segment(s).
Segmentation is essentially the identification of subsets of buyers
within a market who share similar needs and who demonstrate similar
buyer behaviour. The world is made up from billions of buyers with
their own sets of needs and behaviour. Segmentation aims to match
groups of purchasers with the same set of needs and buyer behaviour.
Such a group is known as a 'segment'.
Segmentation is a form of critical evaluation rather than a prescribed
process or system, and hence no two markets are defined and segmented
in the same way. However there are a number of underpinning criteria
that assist us with segmentation:
- Is the segment viable? Can we make a profit from it?
- Is the segment accessible? How easy is it for us to get into
the segment?
- Is the segment measurable? Can we obtain realistic data to consider
its potential?
The 'Segmentation Matrix Business Battlemap' is a useful segmentation
tool. The various products are then plotted on a matrix against
market segment. The result is a 'battlemap' (William A Cohen, 1986).
This is developed for policy processes in the influence map.
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