Question

Market segmentation must be stable and meaningful. Explain these two concepts in terms of segmentation.

this is marketing research subject

Answer 1

Market segmentation is one of the sorted marketing strategies most businesses adapt to streamline the market by dividing it into a broad-based market into target markets with specific groups of consumers thereby formulating the marketing methods/tools that are appealing to each group. To incorporate the Market segmentation as a strategy of the market it should be meaningful by serving the objectives/marketing targets of the firm, thereby achieving the overall goals of the firm.  

Market segmentation clearly identifies the viable segments that match not just make the consumers identify/purchase the product which is right for them but also minimizes the overall wastage of the resources, thereby eliminating the time spent on marketing the wrong products to the wrong consumers at large. So with this evidence, it is evident that to segment the markets the focus should be on resources mapping to different segments, analyze the size, growth, revenue streams & profitability is good both in the short & long run to make it sensible, meaningful, purposeful & stable.

- Following are the key terms that will explain the market segmentation concept in much greater detail:

• Segmenting the market into various means as demographics, product usage, socio-economic conditions & psychographics it's very important that to make such segment effective there has to be the measurement that can measure the sales volume or value, reliable market research must be done to identify the size into each segment to a reasonable degree with accuracy so that the strategic teams can decide to what extent the efforts can be focused to make such segment meaningful & stable.
• Market segmentation must be substantial which means defining the features clearly with the motive for segmenting into various means will enhance the brand preposition thereby the firm can leverage good share in that segmented market. The stability & meaning of it can be only achieved by focusing to tap the unstable consumer groups in the market to make it stable by bringing the change that is way beyond recognition.
• Another key metric to make the market stable or meaningful is achieving accessibility when the segmentation is demarcating, it is significant to consider the groups that are required to be accessed in all terms by checking the strengths, abilities of the firms marketing departments stamina & so on. Different segments behave differently depending upon nature so the marketing strategy needs to be reviewed & monitored to achieve the accessibility by all means & scale up the revenue efforts.
• Market segmentation to be stable, effective & meaningful should be differentiable which means segmentation must be externally heterogeneous to create the difference between the segments in the market. With this, the products & marketing tools can be applied to achieve stability by implementing the strategies with an extensive market research & testing.
• The segmentation into the market by the firm must be practical & actionable which can create value for all the groups widely spread into the market to make it stable & effective. The features must support the data for to position the market with appropriate sales approach across the segments made, which in turn can generate a good amount of outcomes that can be quantified/qualified in relation to the measurements defined by initial market research made in that segment.

Therefore, a thorough understanding on the segmentation of market with underlying principles is important to build the block of the firms marketing strategies thereby lay the foundation which can make it efficient, stable, meaningful, & ultimately successful by all means of reaching the target consumers into the segments with product/services accurately thereby help in leveraging it with minimum wastage with extensive market research.