Market segmentation methods. Market segmentation methods

St. Petersburg State University of Economics and Finance

Department of Marketing

Abstract on the topic:

"Methods and principles of segment marketing analysis"

Completed: Faculty student

economics and management group 315

Parshin Alexander Alexandrovich

Checked: Alekseev Andrey Alekseevich

Saint Petersburg

Introduction

Firms operating in the market are aware that their products or services cannot fully satisfy the needs and desires of all consumers. Ideally, the company will try to occupy all market niches (segments) to maximize profits. In fact, it conducts marketing research and, as a result, focuses its “attention” on certain market segments where its product will bring maximum income - after all, it is quite obvious that different consumers want to purchase miscellaneous goods. In theory, the market segmentation strategy looks like this (Fig. 1)

1. Market segmentation 2. Market objectives 3. Market placement

Figure 1

The abstract will discuss the first point of this scheme - “Market Segmentation”, as well as methods and principles market segmentation, which have become widespread here and in the West.

Market segmentation

1. Classification of markets

Before considering the issue of market segmentation, it is advisable to classify them.

In marketing, the market refers to the totality of all potential consumers who have a need for goods in a particular industry and have the opportunity to satisfy it.

Depending on the type of consumers there are different following types markets: consumer market and organizational markets. The latter are divided into markets for industrial and technical products, resale markets and markets government agencies. With such an abundance of markets, it is obvious that when segmenting a market it is necessary to take into account certain of its features and take into account the uniqueness of products sold in different markets.

2. Definition of market segmentation

As introductory word It is appropriate to recall the Pareto law (“80:20 law”), according to which only 20% of customers bring the company 80% of the income, representing a generalized group of the company’s target customers. The company focuses its products on them (“shooting at targets”). This market strategy seems to be more effective. In essence, this is market segmentation.

Market segmentation consists of dividing markets into clear groups of buyers (market segments) who can demand different products and which require different marketing efforts.

Segment- this is a group of consumers characterized by the same type of reaction to the proposed product and to a set of marketing incentives.

The main arguments in favor of segmentation are the following:

1. Provides a better understanding of not only the needs of consumers, but also what they are like (their personal characteristics, behavior in the market, etc.)

2. Provides a better understanding of the nature of competition in specific markets. Based on knowledge of these circumstances, it is easier to select market segments for their development and determine what characteristics products should have to gain competitive advantages.

3. It becomes possible to concentrate limited resources on the most profitable areas of their use.

4. When developing plans for marketing activities, the characteristics of individual market segments are taken into account, resulting in a high degree of orientation of marketing activity tools to the requirements of specific market segments.

3. Segmentation criteria

The first step in conducting segmentation is to select segmentation criteria. In this case, it is necessary to distinguish between market segmentation criteria consumer goods, industrial products, services, etc.

Thus, when segmenting the consumer goods market, criteria such as geographical, demographic, socio-economic, psychographic, behavioral, etc. are used.

Geographical segmentation- dividing the market into various geographical units: countries, regions, regions, cities, etc.

Demographic segmentation- dividing the market into groups depending on consumer characteristics such as age, gender, marital status, family life cycle, religion, nationality and race.

Socio-economic segmentation involves dividing consumers by income level, occupation, and level of education.

Psychographic segmentation- division of the market into various groups depending on social class, lifestyle or personal characteristics consumers.

Behavioral segmentation involves dividing the market into groups depending on consumer characteristics such as: level of knowledge, attitude, nature of use of the product or reaction to it.

In accordance with the relationship, segmentation is distinguished: based on the circumstances of use, based on benefits, based on user status, based on intensity of consumption, based on the degree of loyalty, based on the buyer’s stage of readiness to make a purchase.

Segmentation by application circumstances - dividing the market into groups in accordance with the circumstances, reasons for the idea, making a purchase or using a product.

Segmentation based on benefits - dividing the market into groups depending on the benefits that the consumer is looking for in the product.

User status characterizes the degree of regularity of use of a product by its users, who are divided into non-users, former users, potential users, new users and regular users.

Consumption intensity - an indicator on the basis of which markets are segmented into groups of weak, moderate and active consumers of certain products. Obviously, it is more profitable to serve one market segment consisting of a significant number of active consumers than several small segments of weak consumers.

Degree of loyalty characterizes the degree of loyalty and commitment of the consumer to a certain brand of product, usually measured by the number of repeat purchases of a product of this brand.

Buyer readiness stage - a characteristic according to which buyers are classified into those who are unaware and aware of the product, those who are interested in it, those who want to buy it, and those who intend to buy it.

When segmenting the market for industrial and technical products, we primarily use following criteria: geographical location; type of organization purchasing goods: size of purchases; directions for using purchased goods.

Segmentation can also be carried out by sequentially applying several criteria. It is important that the segments are not too small, i.e. unprofitable for commercial development. As an example, in Fig. Figure 2 shows a fragment of the results of a consistent three-stage segmentation of the aluminum consumer market.

Figure 2

4. Requirements for segmentation efficiency

Without a doubt, there are many ways to segment a market - but not all of them are effective. For example, table salt consumers can be divided into brunettes and blondes. But hair color has no effect on the amount of salt demanded. Therefore, if consumers purchase salt every month, at the same price and presumably of the same quality, segmenting this market will not bring tangible benefits.

To be useful, market segments must satisfy the following characteristics:

· Measurability - the degree to which the size and purchasing power of a market can be measured. For example, it is almost impossible to determine the number of left-handers - this is not indicated in any statistical collections. Typically, company information databases do not contain such indicators either.

· Availability - the degree to which the market can be reached and supported required quantity products.

· Reality - degree of profitability and segment size. The company should focus its marketing strategy on the largest homogeneous group of consumers - for example, a manufacturer will never make a car for people whose height is below 1.20 m - only to order.

· Effectiveness - the degree to which an effective marketing program can be used to attract consumers. For example, a small aircraft may satisfy 7 market segments, but the CEO lacks the ability and ability to succeed in all market sectors.

Segmentation Methods

Some "basic" segmentation methods can be identified. The most important of them is consumer cluster analysis (taxonomy). Consumer clusters are formed by grouping together those who give similar answers to questions asked. Buyers can be grouped into a cluster if they have similar age, income, habits, etc. Similarity between buyers is based on different measures, but often the weighted square of the differences between buyers' responses to a question is used as a measure of similarity. The output of clustering algorithms can be hierarchical trees or grouping of consumers into groups. There are quite a large number of cluster algorithms.

For example, clustering is widespread in the USA systems analysis, called PRIZM , which begins clustering by reducing a set of 1000 possible socio-demographic indicators. This system forms socio-demographic segments for the entire US territory. Thus, cluster 28 has been identified - families that fall into this cluster include individuals with the most successful professional or managerial careers. This cluster also reflects high income, education, property, approx. middle age. Although this cluster represents only 7% of the US population, it is critical for entrepreneurs selling high-value goods.

There are other examples of consumer segmentation based on cluster analysis. For example, among the “psychological” sectors, “the consumer’s attitude to the novelty of the product” occupies a very important place (Fig. 3)

Figure 3

As can be seen from the above data, the largest number of consumers are ordinary buyers.

Consumer segmentation based on cluster analysis is a “classical” method. At the same time, there are methods of market segmentation based on the so-called “product segmentation” or market segmentation according to product parameters. It is especially important when releasing and marketing new products. Product segmentation, based on the study of long-term market trends, is of particular importance. The process of developing and producing a new product and completing large investment programs require a fairly long period, and the correctness of the results of market analysis and assessment of its capacity is especially important here. In conditions of working on the traditional market of standard products, calculation of its capacity can be carried out by using the market summation method. IN modern conditions to increase their competitiveness and correct definition market capacity, it is no longer enough for an enterprise to carry out market segmentation in only one direction - defining consumer groups according to some criteria. As part of integrated marketing, it is also necessary to segment the product itself according to the most important parameters for its promotion on the market. For this purpose, the method of compiling functional maps- carrying out a kind of double segmentation, by product and consumer.

Functional maps can be single-factor (segmentation is carried out according to one factor and for a homogeneous group of products) and multi-factor (analysis of which consumer groups a specific product model is intended for and which of its parameters are most important for promoting products on the market) Using compilation functional maps can be used to determine which market segment a given product is designed for, what functional parameters correspond to certain consumer needs.

When developing new products this technique assumes that all factors reflecting the system of consumer preferences, and at the same time the technical parameters of the new product, with the help of which it is possible to satisfy consumer needs, must be taken into account; consumer groups are identified, each with its own set of requests and preferences; all selected factors are ranked in order of importance for each consumer group.

This approach allows you to see already at the development stage which parameters of the product need design improvements, or to determine whether there is a sufficiently capacious market for this model.

Let us give an example of such a market analysis in relation to the Apple computer project under development (Table 1) (see next page)

Table 1." Market segmentation personal computers and factors taken into account when developing products for it (1982) "

Factors	Market segments by consumer groups						Model
Factors	At home	At school	At the university	To the house. office	In small business	In a corporation	A	IN
Technical specifications	*	*	***	**	**	**	***	**
Price	***	***	**	***	***	**	0	**
Special qualities	*	*	**	*	*	*	**	*
Reliability	**	*	*	**	**	*	0	**
Convenient to use	**	**	*	**	*	0	***	***
Compatibility	0	0	0	0	0	***	0	0
Peripheral equipment	0	0	0	0	0	***	0	0
Software	*	*	**	**	**	***	*	**

*** is a very important factor

** - important factor

* - unimportant factor

0 - insignificant factor

This one is simple analysis shows that model A is a computer without a market, and model B is the most suitable product for universities and small businesses.

The company once bet on computer A and lost.

In general, in world practice, 2 fundamental approaches to marketing segmentation are used - (see: general scheme of segment analysis (Fig. 4)) (next page)

Figure 4

Within the first method. called “a priory”, the characteristics of segmentation, the number of segments, their number, characteristics, and a map of interests are previously known. That is, it is implied that segment groups in this method already formed. The “a priory” method is used in cases where segmentation is not part of the current research, but serves as an auxiliary basis for solving other marketing problems. Sometimes this method is used with very clear definition market segments when the variability of market segments is not high. “A priory” is also acceptable when forming a new product aimed at a well-known market segment.

Within second method, called “post hoc (cluster based), implies uncertainty about the characteristics of segmentation and the essence of the segments themselves. The researcher pre-selects a number of variables that are interactive in relation to the respondent (the method involves conducting a survey) and then, depending on the expressed attitude towards a certain group of variables, the respondents belong to the corresponding segment. In this case, the map of interests identified in the process of subsequent analysis is considered as secondary. This method is used in segmentation. consumer markets, the segment structure of which is not defined in relation to the product being sold.

Segmentation by " a priory "

When choosing the number of segments into which the market should be divided, they are usually guided by the target function - identifying the most promising segment. Obviously, when forming a sample, it is unnecessary to include segments whose purchasing potential is quite small in relation to the product under study. The number of segments, as studies show, should not exceed 10; excess is usually associated with excessive detail of segmentation features and leads to unnecessary “blurring” of features.

For example, when segmenting by income level, it is recommended to divide all potential buyers into segments of equal volume, taking into account that the volume of each segment is at least not less than the estimated volume of sales of services, based on knowledge of the production capacity of the enterprise. Most a good example, explaining the above and demonstrating the possibility of dividing potential consumers into stable segment groups, can serve as segmentation of the population based on income, when the entire population is divided into five 20% groups. The presented distribution of income by five 20% population groups is regularly presented in statistical collections and reports, similar to that presented in table. 2

Table 2 ."Distribution of income by population groups. %"

The convenience of working with such segment groups is obvious, especially in terms of tracking their capacity.

Segmentation of consumers of industrial markets using the “a priory” method is carried out in accordance with two possible situations regarding the type of consumers:

a) all possible consumers of the market are “known” and their list can be compiled (the number of consumers does not exceed 50 firms)

b) there are quite a large number of consumers, their composition often changes and it is impossible to compile a specific list of them.

In case a), if there are large consumers, their list description is made, that is, they are considered full list all consumers. This method in relation to consumers of the industrial market is called a “complete census of the upper stratum of consumers.” The use of this method makes it possible to determine the capacity of the consumer market, which is considered as the sum of the needs of enterprises from the generated census.

In the second approach to describing consumers of the industrial market, when the number of consumer enterprises making up the segment is quite high and there is no possibility of forming a “complete census,” segmentation is used according to conditional characteristics related to the activities of the industrial enterprise or its characteristics. Such signs may be the components of the financial indicators of an industrial enterprise (the amount of turnover, profitability of activities, the value of fixed assets, etc.). features of the structure or scheme for making a purchase decision, personnel

becoming and similar indicators. The choice of enterprise indicators and segmentation features in this case is determined by the nature of the services or products that are supposed to be provided or supplied to these enterprises. Example-segmentation industrial enterprises by the size of trade turnover and areas of activity is presented in table. 3

Table 3." Segmentation of enterprises by trade turnover and areas of activity "

Segment	Segment characteristics
Small firms	Family businesses with limited financial resources. Lack of administrative apparatus, minimum planning. The scope of activity is geographically limited. Commercial success is linked to the policies of 1-2 key individuals. Financial expertise limited to bank or chartered accountant advice
Medium-sized companies
Service sector	Large number of workers. Need for long-term funding sources to expand operations
Retail	Large number of workers. Large volume of accounting and accounting work, as well as cash transactions
Manufacturing industry	Funding problems. Need for premises
Large firms
Service sector and	Focus on expansion and market capture.
Segment	Segment characteristics
retail	Existence of a wide network of branches with extensive sales staff and administrative control
Manufacturing industry	Greater need for investment in buildings and equipment. The desire to introduce new products, which creates the need for research and development. Constant desire to conquer new markets especially abroad
Agriculture	High level of production specialization. Seasonal cash flow problems. Relatively low return on capital

K-segmentation method ("post hoc" method)

The "K-segmentation" method ("post hoc" method) is aimed at searching for signs of segmentation with subsequent selection of segments. The method implies that there is a consumer market, the structure of which is unknown and cannot be determined “a priori” based on specified characteristics.

Conditions for the effectiveness of the method implementation:

· The company has at least 100 clients (buyers or persons to whom the service is provided) per month.

· Possibility of conducting a survey of the company's clients.

· Availability of special software"DA-system 4.0" (company "Context") or STATISTICA 4.3 (company StatSoft).

Segmentation Stages

· Identification of possible signs of segmentation

Obviously, the signs of segmentation cannot be determined without appropriate consumer research. But, nevertheless, it is always possible to assume possible signs segmentation. First, you can survey the company's salespeople who directly sell to customers about ways in which customers may be divided. And secondly, you can take advantage of socially profitable and socially demographic characteristics segmentation (gender, age, income, profession, etc.).

· Conducting a survey

At the second stage, it is compiled questionnaire and a survey is conducted (in any form: written, oral, group conversation, field experiment, survey technical means). The purpose of the survey is to assign each client to certain differentiated points of the segmentation characteristics selected at the second stage. The specified condition (the presence of differentiated points in each question) determines the need to form

only closed questions. Only the company's clients who purchased a product or service (or were being serviced) in a local period of time, preferably within 1 month, are surveyed

The differentiated points of each question are assigned corresponding serial numbers, which will be entered as an option for the respondent to answer the question. The survey results are entered into the appropriate program

· Determination of “suitable” segmentation features

The degree of “suitability” of a certain segmentation feature can be considered the presence of a certain mathematical correlation between a pair of supposed features (the presence of a correlation between questions in this study). Availability high level correlations ( highest value calculated mathematical correlation coefficient) indicates the presence of a relationship between the characteristics, that is, the possibility of them sharing. And it is possible to identify a stable segment group only at the intersection of two segmentation characteristics.

· Segment selection

Based on the obtained segmentation characteristics, segment groups (also called “consumer segments”) can be formed. Typically, their number does not exceed 5-6 groups. Groups with the highest percentage are identified as market segments.

· Segment formulation

At the last stage, the selected segments are given a description and assigned special marketing nicknames - for example, for new customers - “newbie”, for old customers - “old-timers”. Based on these selected segments, further design, modernization or positioning of the product can be carried out.

The final stage of the formation of segment groups is the “criteria assessment” of the selected segments, within the framework of which their compliance with a number of marketing criteria for the successful positioning of products on them is considered.

Several criteria assessments are considered:

· Segment capacity matching- a positive parameter can be considered the ability to direct all production capacities of the enterprise to work in this segment, i.e. The segment capacity must be greater than or equal to production capacity enterprises.

· Segment availability criterion- for an enterprise: analysis of this issue gives management information about whether it has the opportunity to begin promoting its services in the selected segment or whether it still needs to take care of forming a sales network and establishing relationships with intermediaries. That is, the question is: has the company worked with this segment before?

· Segment materiality criterion is an assessment of how stable this group of consumers is in terms of its main unifying characteristics. Is this segment growing, stable or declining? Is it worth targeting your production capacity to it?

· By criterion compatibility of the segment with the market main competitors The management of the enterprise must receive an answer to the question to what extent the main competitors are ready to sacrifice the selected market segment

Conclusion

My work examined the basic methods and principles of segment marketing analysis. In reality there is much more methods defining the market segment. Ultimately, segmentation is not an end in itself. Its main task is to answer the question: can sustainable groups of consumers be identified? of this product. If such groups are not identified, then the company’s activities can be focused on all buyers of this product (the so-called mass marketing strategy)

Literature

1. Alekseev A.A. Marketing Research service market: Proc. manual. - St. Petersburg: Publishing house SPbUEF, 1998

2. Motyshina M.S. Methods and models of marketing research: Textbook. manual. - St. Petersburg: Publishing house SPbUEF, 1996

3. Golubkov E.P. Marketing research. - St. Petersburg: 1999

4. Kotler, Philip. Principles of marketing.-5th ed.

5. Arenkov I.A. Marketing research: fundamentals, theories and methods: Textbook. manual. - St. Petersburg: Publishing house SPbUEF, 1992

Introduction……………………………………………………………………..2 pages.

Market segmentation……………………………………………………..3 pp.

1. Classification of markets…………………………………………….3 p.

2. Definition of market segmentation……………………………..3 p.

3. Segmentation criteria…………………………….………………4 p.

4. Requirements for segmentation efficiency……………………5 p.

Segmentation Methods……………………………………………………………………6 pp.

Segmentation by " a priory"…………………………….9 pp.

K-segmentation method (" post hoc")…………………………………12 pp.

Criteria-based assessment of promising segments…………………………13 pp.

Conclusion…………………………………………………………..14 p.

Literature………………………………………………………………………………...15 pages

Kotler, Philip. Principles of marketing.-5th ed. - P. 219

Golubkov E.P. Marketing research. - St. Petersburg: 1999

Kotler, Philip. Principles of marketing.-5th ed.

Motyshina M.S. Methods and models of marketing research: Textbook. manual.- St. Petersburg: Publishing house SPbUEF, 1996.p.72

Alekseev A.A. Marketing research of the services market: Textbook. manual. - St. Petersburg: Publishing house SPbUEF, 1998. p. 46

Firms operating in the market are aware that their products or services cannot fully satisfy the needs and desires of all consumers. Ideally, the company will try to occupy all market niches (segments) to maximize profits. In fact, it conducts marketing research and, as a result, focuses its “attention” on certain market segments where its product will bring maximum income - after all, it is quite obvious that different consumers want to purchase different products. In theory, the market segmentation strategy looks like this (Fig. 1)

Figure 1

The article will consider the first point of this scheme - “Market Segmentation”, as well as the methods and principles of market segmentation that have become widespread here and in the West.

Market segmentation

1. Classification of markets

Before considering the issue of market segmentation, it is advisable to classify them. In marketing, the market refers to the totality of all potential consumers who have a need for goods in a particular industry and have the opportunity to satisfy it. Depending on the type of consumers, the following types of markets are distinguished: consumer market and organizational markets. The latter are divided into markets for industrial and technical products, resale markets and markets for government institutions. With such an abundance of markets, it is obvious that when segmenting a market, it is necessary to take into account certain of its features and take into account the uniqueness of products sold in different markets.

2. Definition of market segmentation

As an introductory word, it is appropriate to recall the Pareto law (“80:20 law”), according to which only 20% of customers bring the company 80% of the income, representing a generalized group of the company’s target customers. The company focuses its products on them (“shooting at targets”). This market strategy seems to be more effective. In essence, this is market segmentation.

Market segmentation involves dividing markets into distinct groups of buyers (market segments) who may require different products and be targeted by different marketing efforts.

A segment is a group of consumers characterized by a similar reaction to the product offered and to a set of marketing incentives.

The main arguments in favor of segmentation are the following:

1. Provides a better understanding of not only the needs of consumers, but also what they are like (their personal characteristics, behavior in the market, etc.)

3. It becomes possible to concentrate limited resources on the most profitable areas of their use.

3. Segmentation criteria

The first step in conducting segmentation is to select segmentation criteria. At the same time, it is necessary to distinguish between the criteria for segmenting markets for consumer goods, industrial products, services, etc. Thus, when segmenting the market for consumer goods, criteria such as geographical, demographic, socio-economic, psychographic, behavioral, etc. are used.

Geographical segmentation- dividing the market into various geographical units: countries, regions, regions, cities, etc.

Demographic segmentation is the division of the market into groups depending on consumer characteristics such as age, gender, marital status, family life cycle, religion, nationality and race.

Socio-economic segmentation involves dividing consumers by income level, occupation, and level of education.

Psychographic segmentation- dividing the market into different groups depending on the social class, lifestyle or personal characteristics of consumers.

Behavioral segmentation involves dividing the market into groups depending on consumer characteristics such as: level of knowledge, attitudes, nature of use of the product or reaction to it.

Segmentation by circumstances of application - dividing the market into groups in accordance with the circumstances, reasons for the idea, making a purchase or using a product.

Segmentation based on benefits is dividing the market into groups depending on the benefits that the consumer is looking for in a product.

User status characterizes the degree of regularity of use of a product by its users, who are divided into non-users, former users, potential users, new users and regular users.

Consumption intensity - an indicator on the basis of which markets are segmented into groups of weak, moderate and active consumers of certain products. Obviously, it is more profitable to serve one market segment consisting of a significant number of active consumers than several small segments of weak consumers.

The degree of loyalty characterizes the degree of consumer loyalty and commitment to a particular brand of product, usually measured by the number of repeat purchases of a product of this brand.

The stage of buyer readiness is a characteristic according to which buyers are classified into those who are unaware and aware of the product, those who are interested in it, those who want to buy it, and those who intend to buy it.

When segmenting the market for industrial and technical products, the following criteria are primarily used: geographic location; type of organization purchasing the goods: size of purchases; directions for using purchased goods.

Segmentation can also be carried out by sequentially applying several criteria. It is important that the segments are not too small, i.e. unprofitable for commercial development. As an example, in Fig. Figure 2 shows a fragment of the results of a sequential three-stage segmentation of the aluminum consumer market.

Figure 2

4. Requirements for segmentation efficiency

To be useful, market segments must satisfy the following characteristics:

Measurability is the degree to which the size and purchasing power of a market can be measured. For example, it is almost impossible to determine the number of left-handers - this is not indicated in any statistical collections. Typically, company information databases do not contain such indicators either.

Availability is the degree to which the market can be reached and supplied with the required quantity of products.

The reality is the degree of profitability and size of the segment. The company should focus its marketing strategy on the largest homogeneous group of consumers - for example, a manufacturer will never make a car for people whose height is below 1.20 m - only to order.

Effectiveness is the degree to which an effective marketing program can be used to attract consumers. For example, a small aircraft may satisfy 7 market segments, but the CEO lacks the ability and ability to succeed in all market sectors.

Segmentation Methods

For example, in the USA, cluster analysis of systems called PRIZM is widespread , which begins clustering by reducing a set of 1000 possible socio-demographic indicators. This system forms socio-demographic segments for the entire territory of the United States. Thus, cluster 28 has been identified - families that fall into this cluster include individuals with the most successful professional or managerial careers. This cluster also reflects high income, education, property, and approximately middle age. Although this cluster represents only 7% of the US population, it is critical for entrepreneurs selling high-value goods. There are other examples of consumer segmentation based on cluster analysis. For example, among the “psychological” sectors, a very important place is occupied by “the consumer’s attitude to the novelty of the product” (Fig. 3)

Figure 3

As can be seen from the above data, the largest number of consumers are ordinary buyers. Consumer segmentation based on cluster analysis is a “classical” method. At the same time, there are methods of market segmentation based on the so-called “product segmentation” or market segmentation according to product parameters. It is especially important when releasing and marketing new products. Product segmentation, based on the study of long-term market trends, is of particular importance. The process of developing and producing a new product and completing large investment programs require a fairly long period, and the correctness of the results of market analysis and assessment of its capacity is especially important here. In conditions of working on the traditional market of standard products, calculation of its capacity can be carried out by using the market summation method. In modern conditions, in order to increase its competitiveness and correctly determine the market capacity, it is no longer enough for an enterprise to carry out market segmentation in only one direction - defining consumer groups according to some criteria. As part of integrated marketing, it is also necessary to segment the product itself according to the most important parameters for its promotion on the market. For this purpose, the method of compiling functional maps- carrying out a kind of double segmentation, by product and consumer. Functional maps can be single-factor (segmentation is carried out according to a single factor and for a homogeneous group of products) and multi-factor (analysis of which consumer groups a specific product model is intended for and which of its parameters are most important for promoting products on the market) Using compilation functional maps can be used to determine which market segment a given product is designed for, which functional parameters correspond to certain consumer needs. When developing new products, this technique assumes that all factors reflecting the system of consumer preferences, and at the same time the technical parameters of the new product, must be taken into account. with the help of which it is possible to satisfy consumer needs; consumer groups are determined, each with its own set of requests and preferences; all selected factors are ranked in order of importance for each consumer group.

This approach allows you to see already at the development stage which parameters of the product require design improvements, or to determine whether there is a sufficiently capacious market for this model.

Let us give an example of such a market analysis in relation to the Apple computer project being developed (Table 1)

Table 1. "Segmentation of the personal computer market and factors taken into account when developing products for it (1982)"

	Market segments by consumer groups
		To the house. office	In small business	In a corporation
Technical specifications

Special qualities
Reliability
Convenient to use
Compatibility
Peripheral equipment
Software

*** is a very important factor

** - important factor

* - unimportant factor

0 - insignificant factor

This simple analysis shows that Model A is a computer without a market, and Model B is the most suitable product for universities and small businesses.

The company once bet on computer A and lost.

In general, in world practice, 2 fundamental approaches to marketing segmentation are used.

Within the first method. called “a priory”, the characteristics of segmentation, the number of segments, their number, characteristics, and a map of interests are previously known. That is, it is assumed that segment groups in this method have already been formed. The “a priory” method is used in cases where segmentation is not part of the current research, but serves as an auxiliary basis for solving other marketing problems. Sometimes this method is used when market segments are very clearly defined, when the variability of market segments is not high. “A priory” is also acceptable when forming a new product aimed at a well-known market segment.

Within the second method, called “post hoc (cluster based), the uncertainty of the characteristics of segmentation and the essence of the segments themselves is implied. The researcher first selects a number of variables that are interactive in relation to the respondent (the method involves conducting a survey) and then, depending on the expressed attitude towards a certain group of variables, respondents belong to the corresponding segment. In this case, the map of interests identified in the process of subsequent analysis is considered as secondary. This method is used when segmenting consumer markets, the segment structure of which is not defined in relation to the product being sold.

Segmentation using the "a priory" method

For example, when segmenting by income level, it is recommended to divide all potential buyers into segments of equal volume, taking into account that the volume of each segment is at least not less than the estimated volume of sales of services, based on knowledge of the production capacity of the enterprise. The most successful example that explains the above and demonstrates the possibility of dividing potential consumers into stable segment groups can be segmentation of the population based on income, when the entire population is divided into five 20% groups. The presented distribution of income across five 20% population groups is regularly presented in statistical collections and reports, similar to that presented in Table. 2

Table 2." Distribution of income by population groups. %"

The convenience of working with such segment groups is obvious, especially in terms of tracking their capacity. Segmentation of consumers of industrial markets using the “a priory” method is carried out in accordance with two possible situations regarding the type of consumers:

a) all possible consumers of the market are “known” and their list can be compiled (the number of consumers does not exceed 50 firms)

b) there are quite a large number of consumers, their composition often changes and it is impossible to compile a specific list of them.

In case a), if there are large consumers, their list description is made, that is, a complete list of all consumers is considered. This method in relation to consumers of the industrial market is called a “complete census of the upper stratum of consumers.” The use of this method makes it possible to determine the capacity of the consumer market, which is considered as the sum of the needs of enterprises from the generated census.

becoming and similar indicators. The choice of enterprise indicators and segmentation features in this case is determined by the nature of the services or products that are supposed to be provided or supplied to these enterprises. An example of segmentation of industrial enterprises by trade turnover and areas of activity is presented in Table. 3

Table 3. "Segmentation of enterprises by trade turnover and areas of activity"

	Segment characteristics
Small firms	Family businesses with limited financial resources. Lack of administrative apparatus, minimum planning. The scope of activity is geographically limited. Commercial success is tied to the policies of 1-2 key individuals. Financial expertise limited to bank or chartered accountant advice
	Medium-sized companies
Service sector	Large number of workers. Need for long-term funding sources to expand operations
Retail	Large number of workers. Large volume of accounting and accounting work, as well as cash transactions
Manufacturing industry	Funding problems. Need for premises
	Large firms
Service sector and	Focus on expansion and market capture.
	Segment characteristics
retail	Existence of a wide network of branches with extensive sales staff and administrative control
Manufacturing industry	Greater need for investment in buildings and equipment. The desire to introduce new products, which creates the need for research and development. Constant desire to conquer new markets especially abroad
Agriculture	High level of production specialization. Seasonal cash flow problems. Relatively low return on capital

"K-segmentation" method ("post hoc" method)

Conditions for the effectiveness of the method implementation:

The company has at least 100 clients (buyers or persons to whom the service is provided) per month.

Possibility of conducting a survey of the company's clients.

Availability of special software "DA-system 4.0" (company "Context") or STATISTICA 4.3 (company StatSoft).

Segmentation Stages

Determining Possible Signs of Segmentation

Obviously, the signs of segmentation cannot be determined without appropriate consumer research. But, nevertheless, it is always possible to assume possible signs of segmentation. First, you can survey the company's salespeople who directly sell to customers about ways in which customers may be divided. And secondly, you can use social-income and socio-demographic characteristics of segmentation (gender, age, income, profession, etc.).

Conducting a survey

At the second stage, a questionnaire is compiled and a survey is conducted (in any form: written, oral, group conversation, field experiment, survey by technical means). The purpose of the survey is to assign each client to certain differentiated points of the segmentation characteristics selected at the second stage. The specified condition (the presence of differentiated points in each question) determines the need to form

only closed questions. Only the company's clients who purchased a product or service (or were being serviced) in a local period of time, preferably within 1 month, are surveyed

Determining "suitable" segmentation features

The degree of “suitability” of a certain segmentation feature can be considered the presence of a certain mathematical correlation between a pair of supposed features (the presence of a correlation between questions in a given study). The presence of a high level of correlation (the highest value of the calculated mathematical correlation coefficient) indicates the presence of a relationship between the characteristics, that is, the possibility of their joint use. And a stable segment group can only be identified at the intersection of two segmentation characteristics.

Selecting segments

Segment formulation

Criteria-based assessment of promising segments

Several criteria assessments are considered:

Compliance with the capacity of the segment - a positive parameter can be considered the ability to direct all the production capacity of the enterprise to work in this segment, i.e. The segment capacity must be greater than or equal to the production capacity of the enterprise.

The segment accessibility criterion is for the enterprise: analysis of this issue gives management information about whether it has the opportunity to begin promoting its services in the selected segment or whether it still needs to take care of forming a sales network and establishing relationships with intermediaries. That is, the question is: has the company worked with this segment before?

The criterion for the materiality of a segment is an assessment of how stable this group of consumers is in terms of its main unifying characteristics. Is this segment growing, stable or declining? Is it worth targeting your production capacity to it?

By criterion compatibility of the segment with the market main competitors The management of the enterprise must receive an answer to the question to what extent the main competitors are ready to sacrifice the selected market segment

Conclusion

My work examined the basic methods and principles of segment marketing analysis. In reality, there are many more methods for defining a market segment. Ultimately, segmentation is not an end in itself. Its main task is to answer the question whether stable groups of consumers of a given product can be identified. If such groups are not identified, then the company’s activities can be focused on all buyers of this product (the so-called mass marketing strategy)

Literature

Alekseev A.A. Marketing research of the services market: Textbook. manual. - St. Petersburg: Publishing house SPbUEF, 1998

Motyshina M.S. Methods and models of marketing research: Textbook. manual. - St. Petersburg: Publishing house SPbUEF, 1996

Golubkov E.P. Marketing research. - St. Petersburg: 1999

Kotler, Philip. Principles of marketing.-5th ed.

Arenkov I.A. Marketing research: fundamentals, theories and methods: Textbook. manual. - St. Petersburg: Publishing house SPbUEF, 1992

And when developing the positioning of a new product, it is necessary to decide on the methods of this marketing tool. First of all, you need to choose the maximum suitable methods to implement this project based on strategic goal companies. There are basic market segmentation methods that should be used when forming a company's marketing strategy.

Basic methods

TO key methods marketers include:

Cluster analysis of consumers. Clustering is the result of the formation of groups of consumers that are united by similar answers to the same question. Buyers are grouped into a cluster based on the same age, income level, hobby or social/family status.
Segmentation by product and sales market stimulation. This method is used before starting the process of creating, developing and producing a new product. An assessment of the capacity of segments can be determined by analyzing and segmenting a niche for a specific product and its characteristics, namely by applying the market summation method.
Working on functional maps. This method is based on a more thorough – double – segmentation of the product itself and the potential consumer of the product.

Let's take a closer look at the first type. To combine groups, you need to use similarities between prospects based on different metrics. When working with taxonomy, so-called clustering algorithms are required, which can well be implemented in the form of hierarchical trees with groups of clients.

One of the most common algorithms is PRIZM. It begins the segmentation process by narrowing down a set of 500 possible social and data points. This system allows you to create a specific segment. As a result, cluster 50, for example, families, is identified. This indicator indicates the level of the most successful professional career, high income and education, as well as the presence of large property and the average age of people.

Another example of segmentation based on this method is “consumer attitude towards an updated or new product.” The analysis is carried out based on the characteristic. Several categories of people are identified, including super-innovators, innovators, super-conservatives, conservatives and ordinary buyers. Based on them, you should analyze the niche and identify the true attitude towards new products before their creation and release.

Modern trends in the field of analytics and promotion dictate sophisticated methods of market segmentation. This is necessary for effective analysis of the market capacity of a company or enterprise. Integrated marketing pushes for segmenting the product itself according to the highest priority criteria for its rapid promotion in the market. The characteristic of this method is segmentation according to one specific factor or for a similar category of goods.

Integrated marketing pushes for segmenting the product itself according to the highest priority criteria for its rapid promotion in the market.

In addition, it is important to analyze the definition of the target buyer of a product model: what specific criteria and parameters are important for promoting it in the chosen niche. The functional map method allows you to determine which market segment a product is designed for and what parameters and characteristics it should have.

Even in the process of developing a strategy for a new product, this method makes it possible to take into account all the purchasing criteria and preferences of the target consumer.

Thanks to this approach, in the process of developing a new product, you can see and correct shortcomings and create a product for your consumer.

The K-segmentation method aims to find segmentations to potentially select relevant segments. According to this method, there is a certain consumer market, the structure of which cannot be studied, and the identification of segments in accordance with such criteria is impossible. This method can only be used if the company has been operating for more than a year. It is not suitable for new companies, since its main goal is to analyze existing customers, form target groups and identify needs based on existing consumers of goods.

The above methods and methods of market segmentation are the most common and effective. However, there are many more of them. The main purpose of this tool in marketing is to obtain an answer to the question of whether it is possible to identify groups of target consumers. In the event that there are not enough such stable groups, it is recommended to use a mass marketing strategy.

The next stage of market segmentation is the selection of a segmentation method and its application. This work is carried out using special methods classification according to selected criteria (features). There are many classification methods, generated by the differences in goals and objectives facing researchers. The most common methods of market segmentation are the method of groupings according to one or more characteristics and methods of multivariate statistical analysis.

The grouping method consists of sequentially dividing a set of objects into groups according to the most significant features. A certain characteristic is singled out as a system-forming criterion (the owner of the product, the consumer intending to purchase the product), then subgroups are formed in which the significance of this criterion is much higher than for the entire set of potential consumers of this product. By successive splits into two parts, the sample is divided into a number of subgroups.

In Fig. Figure 2 shows a diagram of sequential breakdowns using the AID (automatic interaction detector) method, which has become widespread in segmentation procedures.

Rice. 2.

For example, in Karpov’s research, a similar approach is proposed as a priority method for selecting a target market.

For segmentation purposes, multidimensional classification methods are also used, when separation occurs according to a complex of analyzed characteristics simultaneously. The most effective of them are methods of automatic classification, or otherwise cluster analysis.

In this case, classification schemes are based on the following assumptions. Consumers who are similar to each other in a number of ways are grouped into one class. The degree of similarity among consumers belonging to the same class should be higher than the degree of similarity among people belonging to different classes.

By using similar method the problem of typification is solved with the simultaneous use of demographic, socio-economic and psychographic indicators. The construction of a typology is the process of dividing the studied set of objects into fairly homogeneous and stable groups in time and space.

For example, among the “psychological” sectors, a very important place is occupied by “the consumer’s attitude to the novelty of the product.”

As can be seen from the above data, the largest number of consumers are ordinary buyers.

“Functional maps” can be single-factor (segmentation is carried out according to one factor and for a homogeneous group of products) and multi-factor (analysis of which consumer groups a specific product model is intended for and which of its parameters are most important for promoting products on the market). By drawing up functional maps, you can determine which market segment a given product is designed for, which functional parameters correspond to certain consumer needs.

When developing new products, this methodology assumes that all factors reflecting the system of consumer preferences must be taken into account, and at the same time the technical parameters of the new product, with which it is possible to satisfy consumer needs; consumer groups are identified, each with its own set of requests and preferences; all selected factors are ranked in order of importance for each consumer group.

Let us give an example of such a market analysis in relation to the Apple computer project being developed.

This simple analysis shows that Model A is a computer without a market, and Model B is the most suitable product for universities and small businesses.

The company once bet on computer A and lost.

In world practice, 2 fundamental approaches to marketing segmentation are used.

Within the first method. called “a priory”, the characteristics of segmentation, the number of segments, their number, characteristics, and a map of interests are previously known. That is, it is assumed that segment groups in this method have already been formed. The “a priory” method is used in cases where segmentation is not part of the current research, but serves as an auxiliary basis for solving other marketing problems. Sometimes this method is used when market segments are very clearly defined, when the variability of market segments is not high. “A priory” is also acceptable when forming a new product aimed at a well-known market segment.

In conclusion we can summarize. The choice of market segmentation methodology represents difficult task. When an analyst faces the task of market segmentation, he needs to decide on the technology and methods for constructing segments.

After determining the principles and methods of segmentation, the main step before carrying out the segmentation itself is the selection of reasonable criteria for this procedure. Obviously, these criteria will be different for the consumer and industrial markets. Let's consider them separately.

Into areas (segments) according to various characteristics.

Segmentation method is to identify groups of buyers in the market that have similar purchasing needs and characteristics.

Benefits of using a segmentation approach.

By identifying and defining these types of consumer groups, a business is better able to develop a product or service that meets the needs of these groups.

This method is implemented through the creation of a new product and a new trademark, based on a promotion company aimed at attracting the attention of the target segment.

Decisions on pricing and distribution systems are also made taking into account the interests of a specific customer segment.

Rice. 8.1 Options for the enterprise segmentation approach

You can select a row factors of attractiveness of segments for an enterprise. First of all, this segment size. The segment must be large enough in terms of the number of consumers, also in terms of purchasing power, in order to ensure a profitable sale. A segment consisting of a small number of customers with low purchasing power will not be profitable for a company engaged in selling a large volume of goods. However, it should be noted that some small businesses choose to target these markets, which are too small for more large organizations, and they work successfully for them. Next important factor is Possibility of identification. An enterprise must be able to identify segment members and define the segment's profile. Factor to be taken into account compliance. The characteristics of the selected segment must correspond to the main characteristics of the product or service offered. For example, belonging to a certain social class, which was previously used as a segmentation variable in a number of consumer goods industries, is now of less importance. Experience has shown that more useful segmentation criteria are income and lifestyle. And the last thing to consider is the factor access possibilities. An enterprise must have access to its chosen market segment to fulfill its objectives.

There are three main options for the segmentation approach to the market (Fig. 8.1). Different segmentation approaches require the development of different marketing programs. In Fig. 8.2 presents the main types of market coverage by marketing programs.

Rice. 8.2 Types of market coverage

Mass Marketing(undifferentiated) is a situation in which the enterprise ignores the segmentation differences of consumers in the market or when the market is more or less homogeneous. When applying a mass marketing strategy, an enterprise believes that its marketing efforts can be used most effectively by concentrating efforts on the entire population, throughout the entire territory, using the same communication, distribution and sales promotion system. However, only those enterprises that can afford it can use this strategy effectively.

Mass marketing is also used when a company can ignore differences in segments and appeal to the entire market at once. Efforts are concentrated on the common needs of all consumers, and sales of mass merchandise are maximized. Marketing costs will be relatively small.

The next option for reaching the market is product-differentiated marketing. An enterprise can choose several segments as its goal. This occurs due to the difficulty of carrying out simultaneous marketing on each individual segment. This approach is often used if the enterprise is focused on the entire market or a significant part of its segments. In this case, there is an increase in the variety of manufactured goods. Marketing costs are higher. Multiple segmentation is the work of an enterprise with the entire market, but taking into account the differences between segments.

In the third case, segmentation is carried out, and the enterprise deliberately chooses to work in one of the market segments. This concentrated marketing.The simplest strategy is to focus on a single segment and firmly position the enterprise's product within that segment. This method is often used in cases where the potential of an enterprise is limited (small company). This approach is often described as "niche" marketing, particularly when the target segment constitutes only a small portion of the overall market. Focus on the production of goods tailored to the requirements of specific consumer groups is often used in a saturated market. The basis is market segmentation.

Table 8.1 Segmentation criteria

Criteria	Characteristics
Psychographic criteria: psychological or sociological composition of buyers	social class personal factors lifestyle behavioral principles occasion benefits sought user status
Demographic criteria: characteristics that can be discovered when analyzing statistical data obtained from a population census	age stage life cycle families family size house type level of education cultural background income occupation religious beliefs nationality
Geographical criteria: where the buyer lives, works and shops	country legal restrictions inflation rate region location of the area transport network of the region structure commercial activities region media availability level of competition dynamics of regional development region size number population density

The justification and choice of criteria for segmenting a particular market depends on the goals of segmentation by the enterprise, the characteristics of the market, the characteristics of consumers and a number of other factors.

Corporate market segmentation criteria:

1. Size of corporate buyers:

80:20 Pareto - high risk the presence of large buyers with simple ongoing work. Large buyers are not segmented; individual marketing is with them.

20:80 What to do with such buyers? Segmentation and consideration of the attractiveness of cooperation are necessary.

2. Growth potential of buyers' firms and/or their markets. 3. Segmentation of industrial markets using standard classification industries:

OKP ( All-Russian classifier enterprises);

SIC (Standard Industry Classification).

Explore various ways use of a product or service by all enterprises in the industry, determine the potential of a given consumer situation in terms of long-term growth and the competitiveness of substitutes for each consumer situation.

Studying representatives from regions based on contacts, including by region.

Segmentation options by code:

product development;
training of sales personnel;
supply services;
advertising message topics and distribution channels;
organization of work of sales agents.

4. Segmentation by procurement method (centralized/decentralized).

Two points of view: technical, consumer.

4.1. According to the sought benefit (and not according to the characteristics of the product), for example, a photocopier:

rapidity;
copy quality;
low cost per copy;
simplicity;
image;
is there such a business;
compactness.

4.2. By sensitivity to sales methods.

4.3. By sensitivity to the use of trade media.

4.4. According to the description of procurement procedures and algorithms.

Purchasing center - for each position in the center there is its own mix.

5. Segmentation by propensity to cooperate or low cost of purchasing from different groups(habits). 6. Price sensitivity:

closed bidding;
significance of expenses;
price/quality;
economic circumstances;
ease of replacement.

7. Segmentation by consumer perceptions/awareness of the product/company/brand:

not aware of the product/brand;
aware, but not seriously considered;
knowledgeable but inaccessible sales and information channels;
are aware, but habit or inertia prevents the purchase;
are aware, but are hampered by an unwillingness to take risks;
aware, but refused due to uncertainty about quality;
aware, but refused due to the high price;
tried, but are not happy;
tried, but unprofitable;
previously used but no longer needed.

Segmentation principles

Markets are made up of buyers, and buyers differ from each other in the most different parameters: needs, resources, geographical location, purchasing attitudes and habits. Any of these parameters can be used as a basis for market segmentation.

Geographic principle of segmentation

It involves dividing the market into different geographical units - states, states, regions, districts, cities, communities. A firm may decide to act:

in one or more geographic areas;
in all areas, but taking into account the differences in needs and preferences determined by geography.

Demographic principle of segmentation

It consists of segmenting the market into groups based on demographic variables such as gender, age, family size, stage of the family life cycle, income level, occupation, education, religious beliefs, race and nationality. Demographic variables are the most popular factors used to differentiate consumer groups. One of the reasons for such popularity is that needs and preferences, as well as the intensity of product consumption, are often closely related to demographic characteristics. Another reason is that demographic characteristics are easier to measure than most other types of variables.

Segmentation based on psychographic principles

It involves dividing buyers into groups based on social class, lifestyle and/or personality characteristics. Members of the same demographic group can have completely different psychographic profiles.

Behavioral principle of segmentation

It involves dividing buyers into groups depending on their knowledge, attitudes, nature of use of the product and reaction to this product.

Segmentation by socio-economic principle

It is a description of the people who form the segment, and not at all an analysis of the factors that explain the manifestation of this segment. The use of a socio-economic group of characteristics is based on the hypothesis that it is differences in socio-economic profiles that determine differences in buyer preferences. Socio-economic factors are used as indicators of needs.

When choosing one or another approach to segmentation, you can be guided by the following criteria:

the importance of the segment for the enterprise;
quantitative indicators (capacity of a given market segment, market niche);
availability of segment development for the enterprise;
product profitability;
protection from competition (already won positions, formed positive image enterprises);
possible efficiency of work in this segment for the future.