Market segmentation and target group research
Markets and market participants have specific requirements, wishes and basic conditions which can determine the success or failure of a product. Markets, however, are seldom homogenous and mostly consist of groups with different requirements, interests or patterns. To be able to selectively target these requests, it is important:
- to identify sub-markets promising huge potential
- to understand these markets
- to adjust the marketing specifically to these groups
Our marketing segmentation is the division of an entire market into individual sub-segments. The division is made based on the requirements, properties and responses of each market participant. Market participants are combined into groups, which are as homogenous as possible in terms of their properties. The groups among themselves, however, should differ as much as possible to obtain clear target groups.
The result is a map of possible submarkets and target groups. This enables companies or market players to only select the market segments that are of interest to them and to process these using optimally adapted strategies.
The criteria for segmenting are dependent on each product or market. Technical or economic aspects as well as criteria are possible, which are inherent in the personality or lifestyle of the market participant.
Segmentation takes place methodically using a data collection and then statistical evaluation. Multivariate evaluation methods [»] are used which ensure that the segmentation takes place based on objective, empirical findings.