Market is composed of the different buyers and groups, as a complex and huge concept. Because the purchase of individual and group has the different geographical position, resource conditions, the differences of consumer psychology, buying habits, etc, the consumers will produce different buying behavior in similar products on the market.
Organizations and enterprises normally are using the combined variable related to market segments, rather than one single variable. In summary, main variables in segmenting consumer markets are geographic variables, demographic variables, psychological variables, and consumer behavior variables, and other categories. Based on these variables to segment, the segment markets are resulting in a geographical segment, psychological segment, demographic segment and consumer behavior segment.
(1). Geographic variable market segments. The enterprise is to make the market divided into a variety of small markets. Geographic variables as a basis for market segmentation, is in a different geographical location of consumers for the same type of products, which are often have different needs and preferences. Their marketing strategies and measures taken against enterprises will have different reactions.
(2). Demographic variables.
Taking gender for example, because of physiological differences, males and females in product demand and preferences are in very different ways, such as clothing, hairstyles, daily necessities and other aspects of difference.
(3). The market segments by psychological variables.
Social class: refers to a particular social groups with relatively homogenous, and durability. Are members of the same class have similar values, interests and behaviors, and different sectors of the different members of the product. Recognize the different characteristics of different social strata of consumers. For many products in the market segment will provide an important basis.
(4). Consumer behavior variable market segments. That is according to buyers of product knowledge, attitudes, and usage and reaction, and so on. They are divided into different groups. Many people think that variables can more directly reflect the needs of consumers, thus these becomes the best starting point for marketing segmentation. Consumer behavior research refers to research how individuals, groups and organizations are to select, purchase, use and disposal of product, service, idea or experience to meet their needs and aspirations. Study on consumers ' behavior is to study a variety of different consumers consumption psychology and consumption behavior, as well as the analysis of factors that influence consumption psychology and consumption behavior, revealing changes in consumer behavior patterns. Consumer behavior is the actions of the consumer to acquire, use, dispose taken by the consumer of goods or services, including in the decision-making processes that govern these actions. Consumer behavior is closely associated with products or services. In the modern market economy condition, consumer behavior is to focus on the establishment and development of long-term exchange relationship with consumers. To this end, the need not only to understand how consumers access to products and services, but also need to understand how consumers are consuming your product, and how the finished product is disposed of. Because consumer consumption experiences, consumers are to dispose of old products and the feelings will affect the next round of buying of consumers. That is long-term exchange relationship between businesses and consumers have a direct role. Traditionally, the study of consumer behavior has been placed on access to products, services, and research on consumption and disposal of products is relatively neglected. With the deepening of consumer behavior research, it is increasingly recognized that, consumer behavior, as a whole, is a process, acquire or purchase only one stage in this process. The environmental factors that influence consumer behavior include culture; social classes; community groups; family; and so on.
Market segmentation is based on different groups of different types of customer needs and customer demand, dividing the market into different groups by relatively similar within groups. Customer segmentation marketers discover the best market opportunities, providing an enabling environment for business to develop appropriate marketing mix; good for business development of new or improved products. Characteristics of consumer and lifestyle of the garment enterprises are to provide the service.
Market segmentation often has such a few steps.
1. The right choice of the scope of the market
Enterprises determine the scope of entering the market, such as coming into what industry with what product, and providing what services according to their own operating conditions and operating ability, and so on.
2. List all potential customers within the scope of the market demand
According to the segmentation standard, the enterprise is comprehensive to list the basic needs of potential customers, as an in-depth study of the basic information and basis for later steps.
3. Conduct analysis of the different needs of potential customers.
The diverse needs of the enterprise to list by sampling survey further collect relevant market information and customer background data, and then divide into some the largest market segment with larger differences, to choose some potential sub-markets which are suitable for the enterprise.
According to the condition of effective market segmentation, the enterprise is to research and analyze all market segments, to eliminate undesirable market segment and useless.
5. Name the sub-markets
For ease of operation, the customer can be combined with each segment the market characteristics, to use the method of visualization, visualization for niche markets. A tourism market is divided into businessman, comfort, curious, adventure, etc.
In further subdivided selection, it was conducted in the market investigation and study, after fully understanding the characteristics of each segment of the market, the company developed the scale of the market segment, the potential demand, which features also need to further analysis and research, etc.
7. Decide the size of the market segment and select target market
Business in each market is to choose consistent with this business advantages and characteristics of market segments, as the target market. Through above seven steps, the enterprise is complete market segmentation work, which can be according to their own actual situation to determine the target market and take the corresponding target market strategy.
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