Question

Explain 1) why needs-based segmentation is recommended more than descriptor-based segmentation. Then, describe 2) how you can develop needs-based segmentation (segmentation step)

Answer 1

Ans1 Descriptor based segmentation is one dimensional approach and it is based on assumptions, sometimes data can be misinterpreted by marketer because data is too vague in it. It does not understand the customers’ requirements better than need based segmentation.

Need based segmentation is recommended more than descriptor based segmentation because in need based segmentation, marketer divide the market into smaller groups of people who have more or less same needs. As we know that nowadays personality traits are complex and various needs playing a role and differing greatly depending on subject matter. By identifying consumers’ needs, business can make sure that it offers them exactly the right products in right way and at right time. It enables business to take a differentiated marketing approach to customer segments and that will lead to:

1. A better understanding of market and customers’ requirements

2. It helps to ensure the products better meet consumers’ needs

3. Better designed communication

4. Higher conversion rates of targeting specific segments

Ans2 Need-based segmentation development steps are-

1. Group customers based on similar needs and benefits

2. Determine characteristics and demographics of each segment

3. Use criteria such as growth and access to determine segment attractiveness

4. Determine if segment can be accepted profitably

5. Create a value proposition and product proposition strategy

6. Test segmentation with positioning strategy

7. Expand positioning strategy for completing marketing mix aspects

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