Saturday, July 29, 2017

Service Marketing Concept market segmentation

Market segmentation is the process of dividing the total market for goods or services into several smaller groups, such that members of each group are similar with respect the factors influence that demand market segment as an element of marketing strategy, recognize the wisdom of specializing to suit the needs of a segment of the market than trying to do “ all thing to all people” the market segment is a group of actual customer who similar needs, the wants the preferences and buying behavior.
Basics of segmentation:

Customer characteristics                                      customer response

Demographic                                                                 benefits
Psycho graphic                                                               usage
Geography                                                                     loyalty
              Base for                                                     develop
              Segmenting                                                 resulting segmentation
Process of market segmentation:

Steps in market segmentation and targeting for services.
Identifies bases for segmenting the market:
Market segments are formed by grouping customer who share common characteristic that are in some way meaningful to the design, delivery, promotion or pricing of the service, common segmentation bases for consumer markets including demographic segmentation and bases for the service, common segmentation demographic segmentation, geographic segmentation, psycho graphic segmentation and behavioral segments may be identified on the basis of one of these characteristics or a combination.
Develop profiles of resulting segments:
Once the segments have been identified it is critical to develop profiles of them. In consumer markets these profiles usually involve demographic characterizations or psycho graphic or usage segments of most importance in this stage clearly understands how and whether the segments differ from each other in terms of their profiles. If they are not different from each other the benefits to be derived from segmentation that is from precisely identifying sets of customer, will not be realized.
Develop measures of segment attractiveness:
The fact that segment of customer exist doesn’t justify a firms choice of them as targets. Segments must be evaluated in terms of their attractiveness. The segments are worth the investment in marketing and relationship costs associated with the group.
Select the target segments:
          Based in part on the evaluation criteria, the services marketer will select the target segment or segments for the service the form must decide if the segment is large enough and trading towards growth.
Ensure that the target segments are compatible:
          This step of all the steps in segmentation strategy is arguable more critical for service companies than for goods companies because services are often performed in the presence of the customer the services markets must be certain that the customer are comparable with each other.