Market segmentation holds the key to successful business research reports for larger business ventures. Marketing research provides confirmed leads when it comes to knowing your target customer, marketplace and prevailing competition. When you are conducting industry research for large or international business venture, it gets difficult to study the customers that are naturally spread in a clustered manner. Marketing segmentation is the best process that helps you study a group of customers who are separated based on their similarities or differences.
Market segmentation is a process of dividing the target customers in a marketplace, into various relatively smaller groups. These groups or segments always have similar interests, buying patterns, demands and preferences when it comes to buying your products. When you hire a professional market research company, you get tremendous help from such segments of customers. However, there is a set formula of categorizing all the customers in a target market.
It is important to follow this set criterion in order to make the market segments valid and useful for such large research projects. Accuracy is the prime focus of industry research reports. in order for the reports to be accurate, market segmentation has to be precise and accurate. There are about seven criteria to determine marketing segmentation for business research projects:
Measurability: Measurability of the segments is the basic need. For the reports to be accurate, the segments have to have enough customers so that each opinion is counted. It also helps evaluating the overall attractiveness of various segments.
Accessibility: When you group various sets of customers together for market segmentation, you have to consider accessibility. The segments have to be within easy reach from each other. It is crucial for both the customers and researchers. Each segment of the target market has to be within easy reach for effectiveness of the division.
Homogenous: A homogenous segment of the market means the customers are divided in various segments, based on their similarities or some relevant basis or the other. Homogeneity is the basis of market segmentation.
Heterogeneous: A heterogeneous segment of the market has segments of the customers that are divided based on their uniqueness. Heterogeneity of market segments shows the customers that the entire market is divided based on different need of various customers.
Substantial: Size of market segments has to substantial enough. It helps collecting significant results for marketing research reports. it is also essential considering the financial aspect of the research project. Each business owner has own financial constraints which determines the size and significance of each of these segments.
Responsive: Each segment of your target market has to be responsive. They have to generate positive or negative response for various methods and strategies of business research.
Practical: You have to be careful to divide the target customers in groups of distinctive mixture. It avoids repetitiveness and similar response. Customer feedback has to be practical and based on specialized segments, which is possible with help of practical segmentation of the market.
All these bases of market segmentation help industry research experts to gather exclusive information from various customers of a target market.
MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world.
North – Dominion Plaza,
17304 Preston Road,
Suite 800, Dallas, TX 75252