What are the four principles of market segmentation

This is a mind map about the four principles of market segmentation. It tells the story about the four principles of market segmentation. If you are interested in the story of the four principles of market segmentation, please feel free to read this. Mind map collection and likes~

Edited at 2022-10-20 12:39:05

PlotWizard

Recent works View more works>>

What are the four principles of market segmentation

PlotWizard

Recent works View more works>>

Recommended to you
Outline

What are the four principles of market segmentation?

As market competition becomes increasingly fierce, companies need to segment the market into different groups of people.

Different groups of people have different needs, preferences and purchasing behaviors, so differentiated marketing strategies need to be developed for different groups of people.

By segmenting the market, companies can more accurately grasp customer needs and provide personalized products and services to meet the needs of different groups of people.

Market segmentation can be classified by demographic characteristics (such as age, gender, education level), geographical location, behavioral characteristics (such as purchasing habits, consumption level), etc.

2. Principle of demand difference

Different groups of people in the market have different demands for products and services.

Some people are price-sensitive, focus on cost-effectiveness, and pursue high-performance or low-cost products.

Some people pay attention to quality and pursue unique and high-end products.

There are also groups of people who focus on functionality, convenience or personalization.

Enterprises need to develop products and services suitable for different groups of people based on their different needs to meet the diverse needs of the market.

3. Profit difference principle

Different groups of people have different purchasing power and consumption habits, resulting in different levels of price sensitivity to products.

Some people are price-sensitive and pay more attention to price concessions. They are used to buying low-price products.

Another group of people have higher requirements for quality and service and are willing to pay higher prices for it.

By segmenting the market and based on the purchasing power and consumption habits of different groups of people, companies can formulate differentiated price strategies and increase product profit margins.

4. Principle of operability

There are many factors that need to be considered in market segmentation, and the resources of enterprises are limited. Therefore, market segmentation should be operational.

Market segments should be based on the resources and capabilities of the enterprise and the extent to which they can meet the needs of the market segments.

Enterprises need to evaluate whether they can gain competitive advantages in market segments and then formulate corresponding market segmentation strategies.

After implementing market segmentation strategies, companies also need to conduct continuous market monitoring and adjustments to ensure the operability and effectiveness of market segmentation.