Advantages Of Predictive Analytics

Segmentation is done to divide the potential target customers into various subsets depending on age, taste priorities needs etc so that the companies can strategize at catering the needs of those customer groups efficiently using different strategies to meet the satisfaction levels of various segments depending on its peculiar and typical characteristics. It gives a commercial advantage to the company by targeting the right people with basic objectives of reducing risk by analyzing to whom how when and where is the product and service is to be marketed.

Data segmentation is drastically improving the customer’s shopping experience. It can help your business customize everything from retargeting ads to loyalty programs.

According to Horner and Swarbrooke (2005: 39), Segmentation may be defined as the process of dividing a whole market into subgroups or segments for marketing management purposes. Market segmentation is the division of the overall market for a service into various categories with common characteristics. In response to different segments, organisations facilitate the available resources to achieve greater efficiency, in order to satisfy specific needs of customers.

• Market Segmenting- is known for targeting potential customers that are the best matches for services and products. This type of tool is important to businesses because it involves finding the different needs that exist with consumers. For example, some consumers prefer a fast paced environment while others are concerned with the space.

Segmentation describes the division of a population into more or less homogenous segments based on their acceptance and buying patterns of products or services. This JB market can be broken down into the following market segments and sub-segments.

Market segmentation is the fundamental component of a market-based strategy. A market segment is a specific group of customers with distinctive customer needs, purchase behaviours and different descriptive characteristics. (Best, 2000) By categorizing markets into sub sectors, targeting marketing effort in such a way as to meet the technical and other requirements of each of these, organisations maybe able to secure greater competitive position than if they attempted to satisfy the general requirements of the market as a whole.

The segmentation has been done on the basis of buying behavior of the customers. Knowledge of segment buying behavior can help redirect marketing resources for profit gain.

Sales segmentation is the procedure of creating separate marketing tactics to appeal to consumers with different needs, interests, finances or other traits. It involves identifying segments of your likely customer base that have the greatest probability of buying your products or services. This process allows your business to more proficiently market to individual groups of consumers or clients. This process does not have be complex at all. For most small companies, it could be as a simple as recognizing that you may two to three very specific customer types with different needs between them. Dr. Kee knew with his own pastry business, he told us to ask ourselves some questions such as, “Who do you want to talk to and sell to?”

Segmentation is essentially the identification of subsets of buyers within a market who share similar needs and who demonstrate similar buyer behavior

Market segmentation is the process to divide the total market into groups or segments. Each group consists of people with relatively similar product needs. The purpose of the market segmentation is to enable us to design a marketing mix that can more precisely match the needs of customers in the selected market segment, to concentrate the marketing energy and to establish a competitive advantage.

Once we have the product ready, we need to divide our market in to homogenous units. This process of subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand is called Market segmentation.

In general, to determine the market segmentation for a company is important in order to attract the right customer and direct all efforts specifically toward the particular segment in a manner consistent with that segment 's characteristics.

Segmentation is a tool; purpose is to choose target market.Segmentation comes prior to target market Many different tasks are involved other than segmentation when choosing target market Look at each segment on its own as an individual marketing opportunity. Potential worth of each segment To examine whether the whole market should be chosen or only few segments To find segments which are less satisfied in market from competitor brand.

Market segmentation is an approach used by a company to select their target market and provide data for a marketing plan. “Market segmentation consist of a two-step process; naming broad product markets and segmenting these broad products-markets in order to select target markets and develop suitable marketing mixes” (Perreault, Cannon, & McCarthy, 2014, p.97). There are 4 categories pertaining to market segmentation; behavioral, geographic, demographic, and behavioral.

Different types of segmentation should be considered. For example, the mass market that basically caters to a large group of customers with similar needs and problems; the niche market where there are specific customers segments and, therefore, the elements of the business model are designed to suit the requirements of each group; or the segmented and diversified markets. It is basic to identify them properly. The deeper knowledge of these segments, the better for the business model. Market research is needed before making the decision.