In this video we we’ll going to see how to make Excellent market segmentation, this process moving through five greatest marketing steps. Each segmentation steps brought you understandable and useful tools.

2. Market segmentation is the process that companies use to divide large
heterogeneous markets into small markets that can be reached more
efficiently and effectively, with products and services that match their
unique needs .

3. Segmentation dissection essentially
choices about which customers to
serve and what to offer them, its Related
to the characteristics of buyers
and the product

4. - Purchase occasion
- Lifestyle
- Demographics
are key variables
Characteristics of the buyers
For Household buyers

5. - Size
-Technical Sophistications
-Replacement are key variables
-Also Distribution Channel and Geographical location are Key
variables for Both Categories
For industrial buyers

6. - Physical Size
- Price level
- Product features
- Technology Design
- Inputs (such as raw materials )
- Performance characteristics
- Pre-sales and post sales service has been key variables
Characteristics of the Product

7. Identify, which variables most important in to creating meaningful
division in your market ? For example in computer industry color probably not a
good segmentation variable , black and silver color laptop sell same price.

8. Combine segmentation variables that are closely correlated.
For example ,food, beverage, and accommodation are can be related
with airline industry. But sports equipment perhaps not.

9. Once the segmentation variables have been selected and discrete categories
determined for each, the individual segments maybe identified using two or
three dimensional matrix

10. Or like the next one world vehicle matrix chart simply
make two dimensional matrix such product and
geographic location

11. World vehicle Segmentation Matrix

12. porter’s five force competition framework can be useful in order to inter the
segment, it will gives you a clear information about the
entire industry’s, such as how
strong or weak mobility barriers
to entry , explosion to substitute.
Also segmentation analysis
helped to identifying unexplored
opportunities

13. You can identify /KSFs/ by
analyzing within each segment
How do customers choice ? What
are purchase criteria?
And what is needed to survive
competition ?

14. Finally you needs to decide whether it wishes to a segmented specialist or
compete across multiple segment

15. Step1.Identify Key segmentation variables and categories
By Analyze the Characteristics of buyers , and The characteristics of the
product
Step 2. construct a segmentation matrix
identified using two or three dimensional matrix
Step 3. analyze segment attractiveness
Porter five force competition framework, and segmentation analysis can be
useful
Step 4.Identify the Segment Key Success Factors /KSF/
How do customers choice ? And what is needed to survive competition ?
Step 5. Select Segment Scope
You would like to be segmented specialist or compete across multiple
segment?

16. by
Leul girma
Thank you