Fergana polytechnical institute faculty management in production department "economy" methodological instruction

Lesson number 5. Market segmentation.
Issues for discussion.
1.1 The essence and importance of market segmentation. Features of market segmentation. How to identify a market gap. Types of market segmentation. Basic principles of market segmentation (geographic, psychographic, socio-economic, behavioral, demographic, etc.). segmentation efficiency.
1.2. Selection and evaluation of the target market. Valuation of market segments. Choice of target market segments. Differentiation and positioning. Arrangement of cards. Choosing a positioning and differentiation strategy.
1.3. Informing consumers about product positioning. Ways to identify the most important market segments. Positioning the product in the market. Positioning methodology.
Everything you need to know about the market segmentation process
The need to identify market segments and search for free niches is due to growing competition in all sectors of the economy, the need to increase the effectiveness of advertising investments in product development and strengthen loyalty to the company's product. In the article, we will describe the process of market segmentation at 360 degrees. Let's take a closer look at each important stage of market segmentation and talk about modern types of market segmentation.
The article contains practical examples and links to additional sources of information. So we hope that after reading our material you will have no questions about how to find, evaluate and choose the best

Segmentation Target segmentation Positioning

Profitable segment for the development of the company in the market.


Is it really that important to choose a segment?
In today's world, a loyal customer is most valued, who will not switch to competitors at the slightest opportunity, who will tell his friends about the product and bring new customers, for whom it will not be necessary to conduct large-scale advertising campaigns. High loyalty can only be acquired if the company is able to identify the needs of the audience well and satisfy them 100% with the help of its product.
But how can you please everyone? That's right - you can't. An individual approach is important. This is where market segmentation can help. The essence of the market segmentation process is to combine all market consumers into homogeneous groups according to certain criteria, select the most stable and profitable groups of customers and create a separate product for each group, conduct a separate advertising campaign, offer different services and working conditions, in other words, develop a separate marketing mix for each segment.

The importance and role of the market segmentation process for a company cannot be underestimated: optimization of company resources by concentrating on high-performance markets, unification of work with consumers and increasing their level of satisfaction by better matching the product to market needs, increasing the competitiveness of the product and business as a whole by following a clearly chosen strategy work.
Thus, the global goal of the market segmentation process is the long-term growth of sales and profits of the company, therefore, when starting to develop a marketing strategy for a product, planning a business expansion or creating an advertising campaign, check if you have a target segment defined.
Task 1. Fill in the columns of table 8 "Methods for developing the target market":
1. Wide range of consumers.
2. Commodity distribution, sales.
3. Targeting different types of consumers through a broad unified marketing program.
4. All suitable media.
5. All suitable outlets are different for different segments.
6. Targeting two (or more) distinct market segments through different marketing plans applied to each.
7. All eligible outlets.
8. Price.
9. All suitable media are not the same for different segments.
10. Target market.
11. Emphasis on strategy.
12. One well-defined consumer group.
13. Distinctive brands of goods or services for each group of consumers.
14. Limited number of products or services of one brand for many types of consumers.
15. Promotion.
16. Two (or more) well defined consumer groups.

1. All possible outlets.

2. Mass media.
3. Orientation to a specific group of consumers through a highly specialized, but massive program.
4. A distinctive price range for each consumer group.
5. One brand of goods or services targeted at each group of consumers.
6. One "generally recognized" price range.
7. One price range adapted to one consumer group.
8. Product or service.
Task 2.
Fill in the flowchart (Fig. 5. 1), including the appropriate steps:
1. Research of behavior of buyers;
2. Study of the expected reaction to the introduction of a new product;
3. Determining the capacity of the market and (or) its individual segments;
4. Studying the activities of competitors;
5. Forecast of sales of goods.