Factors affecting market segmentation pdf. 17+ Market Analysis Examples 2019-03-03

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Psychological Factors

factors affecting market segmentation pdf

You may also see the. The same object is perceived differently by different individuals. Lifestyle is how a person lives his life. The buyer can be made to learn new ideas by constant advertising. Having this can be easier if you are familiar with the market that you are currently tapping. You may also see the. He loves the car and finds it to be safe, reliable, energy efficient, and a great value for the money.

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6 Factors that Affect the Feasibility of Market Segmentation

factors affecting market segmentation pdf

The skills are developed through practice while the knowledge and intention are acquired with the experience. All the companies supplying the same target market will be able to conduct business and make a profit. If rivalry is more intense, however, it can lower profitability for all competitors to the point that the companies could fail. Geographic Segmentation Geographic segmentation divides the market on the basis of geography. Learning can also take place without actually participating in the physical experience.

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Psychological Factors

factors affecting market segmentation pdf

There are many reasons as to why market segmentation is done. Always keep in mind that being able to collect data is not the end of the procedure. Demographics segmentation is a common strategy where several socioeconomic traits are used to categorize customers, including age, gender, marital status, race or ethnicity, income, education and occupation. It is believed that the knowledge of the product and its use affects the buying decision of an individual. It is important for marketers to understand how beliefs and attitudes may affect consumer behavior and decision making. For example, Silver, Gold, sugar, and food-grains have the wide market while the demand for bangles, Gandhian cap, and Nehru jacket are limited to India only.

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Marketing & Demographic Factors

factors affecting market segmentation pdf

Consumer Attitudes and Heinz Baked Beans Just how powerful are consumer attitudes and beliefs? Cognizability A commodity is easily known on the basis of its quality by the consumers it will be demanded more and the size of the market is widened while in the absence of cognizability of a product buyers will not demand more and market will be Limited. If you can be knowledgeable of how these elements link with one another, then you can have a more efficient time in making the market analysis for your business. If you opt for high prices and high margins, you likely need a market segment with more income. One of the best-known theories about individual motivation is the work of A. Who, What, When, Where and Why? However, they also target a non-traditional population of people who typically want to gain additional education after being in the workforce for a while. The marketers lay emphasis on managing the perceptual processes, Viz. Age Some personal traits have more importance in market segmentation identification than others.


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Five Factors Used in a Target Market

factors affecting market segmentation pdf

There are several ways that a market can be geographically divided. Usage Product usage also acts as a segmenting basis. Esteem includes the need to feel good about oneself, to be respected and valued by others, and to have a positive self-image. Substitutes A commodity having substitutes in the market will have a limited market while no substitute commodity will be widely used and the size and extent of the market are widened. Income, Education and Occupation These three factors are closely correlated in that income is often related to a person's education level and job type. Income Income decides the purchasing power of the. How does this affect the expected market share a company could be expected to win in the short and long run.

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What Internal & External Factors Affect Market Segmentation?

factors affecting market segmentation pdf

Anthony Wilkey, Regional Director, Account Management Group, emailvision. Organizational factors The internal factors that influence the decision-making process in a company are considered as organizational factors. Being able to do this can make your company resilient and prepared in adjusting certain offers and business changes. Thus, these are some of the psychological factors that the marketer must take into the consideration before undertaking the strategic marketing decision. The market segment that you would like to penetrate. At any given time, a person has a variety of needs that are not of sufficient urgency to generate the motivation to act, while there are others for which he is highly motivated to act.

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Market Segmentation

factors affecting market segmentation pdf

Simple though it may be, it is of vital use to forming any marketing plan. Usually, the basic needs and the security needs are more pressing needs than the other and hence, these needs become a motive that directs the consumer behavior to seek satisfaction. Marketing environment is changing rapidly. Suppose a consumer likes pizza but does not like Pizza Hut. Motivation starts with an unmet need, as does all consumer problem solving. The perception is the process through which the individual selects, organize and interpret the information to draw a meaningful conclusion.

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International Marketing Major Factors

factors affecting market segmentation pdf

Learning and Socialization In the context of consumer behavior, learning is defined as changes in behavior that result from previous experiences. This leads to a buying decision by the customer for the product. Beliefs and attitudes do not always translate into behaviors: in some situations customers may choose to do something despite their personal views. Government policy Domestic and foreign trade is affected by government policy relating to exports and imports, license, protection, taxes etc. In some cases, an organization intentionally targets a diverse crowd rather than a particular group.

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15 Factors that Affecting Market Segmentation

factors affecting market segmentation pdf

Different people have different perceptions about the same product depending on their individual beliefs and attitudes which give rise to selective distortion. In this case, you may want take a niche approach and offer distinct products to an under-served customer base. The opportunities that you can grab for your business to thrive in the market that you are analyzing. Competition One of the strongest external factors that impacts your ideal target market is the level of competition. Thus, Bricks, cement other building materials have a small size and extend market while silver and gold have a large size and extend market. These include the political scenario and the approach by the government and its attitude towards international trade, business ethics, availability and quality of infrastructure, raw-materials, and other technological and ecological factors. Does it make a difference? Suppose a fast food company has identified the college canteens to be a good segment, but if the colleges do not permit the fast food to supply or serve college canteens, the segmentation would serve no purpose.


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