Market Air Conditioners to Floridians and Heaters to EskimosThe total population of customers is obviously large and varied. It contains people from all walks of life and belonging to different income groups. Each of these different groups of customers require an altered and unique approach. The basis for this approach is developed with market segmentation analysis.
Market segmentation is a strategic marketing tool to define markets and then allocating resources appropriately. Using a statistical techniques called factor analysis and cluster analysis combines attitudinal and demographic data. The result is then used to identify segments that are easier to target. It is better to identify target groups and then aggressively market to these smaller, more defined segments. This results in better results at lower costs.
From a management viewpoint, market segmentation divides a market into seperate groups who are more likely to be drawn to different products or services. This technique is accepted as a fundamental requirement for a successful marketing campaign.
Market segmentation is concerned with individual or group differences in response to specific factors (e.g. lifestyles, personal preferences, media habits, etc.). If these response differences can be identified, and are stable, and if these segments can be efficiently reached, market share is increased.
Once the market is defined and segmented, we apply the best tools and technicians - to reach the buyers - cost effectively.