So far we have concentrated on consumer markets, but B2B providers will segment their markets as well. Some characteristics may include:
- Type of business
- Size of business
- Size of purchase
- Service requirements
Socio economic groups
Can you match the description below to the appropriate socio-economic group?
Why do marketers divide markets into segments?
A successful attempt at dividing a market into segments should allow the firm to focus more carefully on the characteristics of the market, so:
- Increasing market share and sales by targeting specific groups with appropriate products
- Entering new markets having clearly identified characteristics and needs of new target groups
- Launching new products at groups whose tastes are more in line with what the product has on offer
- Diversifying across markets having tested the products strengths elsewhere and identified key consumers
It should be obvious to you by now that marketing is very much more than just selling. Indeed, it verges on a science.