For the GWC Valves International organization, being able to select which markets to target is important and this is called market segmentation. Market segmentation is the process of dividing a total market into several relatively similar groups. It is often based on marketing research results, and it attempts to isolate traits that distinguish a certain group of customers from the overall market. There are different criteria’s that marketers consider when segmenting markets such as making sure a segment must be measurable group, a segment must be accessible for communication and a segment must be large enough to offer profit potential. Market segmentation all starts with linking a market segment to a target and they can create a suitable marketing strategy to reach that target market.
The way that market segmentation works all depends on the product and the target market chosen. If you choose the consumer market, you are looking at psychographics, product-related, demographic and geographical. Business products are segmented into customer-based, end-use, and geographical. The effectiveness of as segmentation strategy depends on how well the market meets these criteria. Once marketers are able to identify a market segment to target, they are then able to create their marketing strategy.
When it comes to segmenting consumer markets, there are different segmentation categories such as geographical segmentation, demographic segmentation, psychographic segmentation and product-related segmentation. When it comes to geographic segmentation, this involves being able to divide the market into similar groups on the basis of their locations whereas demographic segmentation involves more socioeconomic characteristics such as gender, age, occupation, income and so on. The psychographic segmentation involves being able to divide consumer markets into groups with similar values, lifestyles and attitudes. Product-related segmentation is all about being able to divide consumer markets into groups that are based on benefits sought by buyers, loyalty levels and their usage rates.