The theory of market segmentation was put forward by Wendell, an American marketing expert, in the 1950s. What Smith put forward, some people call it another revolution after the "consumer-centered concept" of marketing relay. Market segmentation refers to the practice that enterprises divide consumers into smaller sub-markets with some similar characteristics according to their own conditions and marketing intentions. Enterprises conduct market segmentation because under the modern market conditions, consumers' demands are diversified, and they are numerous and widely distributed, so it is impossible for any enterprise to meet all the demands of consumers in the market with its limited resources. It is the most basic premise of modern marketing to provide products or services with their own advantages to specific consumer groups in the market through market segmentation. 1. Basis of market segmentation
There are many consumers with different needs, but enterprises can distinguish them according to certain standards and determine their target groups. The main basis of market segmentation is: regional standard, crowd standard, psychological standard and behavior standard. According to these standards, market segmentation is regional segmentation, crowd segmentation, psychological segmentation and behavior segmentation. (1) geographical subdivision
Regional subdivision is to divide the market into different regional units, and the regional standard can choose country, province, city, county or residential area. Geographical subdivision is a subdivision standard often adopted by enterprises. On the one hand, consumers in different regions have different habits, lifestyles, religious beliefs, customs and other preferences, so their needs are different. For example, consumers in Europe and Asia have very different needs for skin care products and cosmetics due to different skin types and living conditions. Therefore, when Yuxi made the slogan "Cosmetics specially developed for oriental women" in China, she was favored by women in China. On the other hand, when modern enterprises, especially large multinational enterprises, conduct transnational or cross-regional marketing, regional differences are more critical to the success or failure of marketing. As the saying goes, "oranges are born in Huainan, oranges are born in Huaibei, and oranges are born in Huaibei." At the same time, small-scale manufacturers often subdivide a small area in order to concentrate resources and occupy the market. American Renault Company divides Chicago into three small cigarette markets:
North shore market. Most residents here are well-educated and care about their health, so the company promotes cigarette brands with low tar content. Southeast regional market. This area is inhabited by blue-collar workers whose income is low and conservative, so the company sells cheap Winston cigarettes here. Southern regional market. This area is a black residential area, so the company uses a large number of black newspapers and billboards to promote Sharon brand cigarettes. (2) Population segmentation
Crowd segmentation is to divide the market into several groups according to consumers' age, gender, family size, family life cycle, income, occupation, education level, religious belief, race and nationality. Due to the demand structure and preferences of consumers, the utilization rate of product brands is closely related to population, and the population factor is easier to quantify than other factors. Therefore, crowd segmentation is the most widely used segmentation in market segments. Age, gender and income are the most commonly used indicators of population segmentation. Consumers' demands and purchases change with age. There are obvious differences between the youth market and the middle-aged and elderly market. Young people spend money generously and pursue the excitement of fashion. The requirements of middle-aged and elderly people are more practical, efficient, quality-oriented and low-cost than conservative and steady ones. Therefore, enterprises should have different considerations when providing products or services and formulating marketing strategies relative to these two markets. Gender segmentation is widely used in clothing, cosmetics, cigarettes and magazines. The demand characteristics of men's market and women's market are very different, for example, the appeal points of women's cigarettes and men's cigarettes are completely different. Marlboro men's cigarettes emphasize that men are as strong and handsome as cowboys in the west, while Ms. Kuhl's cigarettes highlight the mystery and elegance of women. According to income, the market can be divided into high-income groups, white-collar groups, working-class groups and low-income groups. High-income and white-collar workers pay more attention to product quality, brand, service and added value, while low-income people pay more attention to price and practicality. For example, car companies and real estate companies provide different products and services for different income groups. Of course, many enterprises often use a combination of two or more factors when subdividing people, rather than just one factor. (3) Psychological subdivision
Psychological segmentation is to segment the market according to the social class, lifestyle and personality characteristics of consumers. People in the same geographical market segment may show completely different psychological characteristics. For example, an American pharmaceutical company divides consumers into four categories: realists, people who believe in authority, skeptics and sentimentalists. The main factors to be considered in psychological subdivision are:
① Social stratum
Because different social classes live in different social environments and growth backgrounds, they have different interests and preferences and have different needs for products or services. Philip kotler, an American marketing expert, divides the United States into seven classes: the upper class, that is, celebrities who inherit a large amount of property and have famous family backgrounds; Upper and lower classes, that is, people who have extraordinary vitality in their profession or career and obtain higher income or wealth; The middle and upper classes are independent entrepreneurs and company managers who are extremely concerned about their "career prospects" and have obtained special occupations; Middle level, that is, middle-income white-collar workers and blue-collar workers; The working class, that is, middle-income blue-collar workers and people who live a working-class lifestyle, no matter how high their income, school background and work are; The lower and upper classes, that is, people with low wages and living standards just above the poverty line, who pursue wealth but have no skills; The lower class, that is, people who are poor, often unemployed and rely on public or charitable relief for a long time. ② Lifestyle
The goods people consume often reflect their lifestyle. Therefore, brand operators can segment the market accordingly. For example, mass consumers are divided into "law-abiding citizens" and "car lovers"; However, a female fashion company divides young women into "simple women" and "fashion girls" according to their different lifestyles, and provides different brands of fashion, which is very popular in the market. ③ Personality
Personality is a concentrated reflection of a person's psychological characteristics, and consumers with different personalities often have different interests and preferences. When consumers choose brands, they will rationally consider the practical functions of products, and at the same time, they will emotionally evaluate the personalities of different brands. When the brand personality matches their own evaluation, they will choose the brand. For example, in the 1950s, when Ford Motor Company promoted Ford and Chevrolet, it emphasized the differences in personality. (4) Behavior subdivision
Behavior segmentation is to segment the market according to consumers' understanding, use and reaction to the brand. The breakdown factors in this respect mainly include:
Timing: it is the time for customers to buy or use brands, such as marriage, further studies, festivals, etc. Frequency of purchase: whether to buy frequently or occasionally. Buying benefits: cheap, convenient and practical, fashionable and trendy, showing off, etc. User status: used, never used, first-time user, potential user. Brand understanding: I don't know, I've heard of it, I'm interested, I want to buy it, I'm going to buy it, and so on. Attitude: enthusiasm, affirmation, indifference, negation, hostility, etc. 2. The requirements of market segmentation
According to the characteristics of the products or services provided, enterprises choose certain segmentation standards, conduct investigation and analysis according to this standard, and finally describe and summarize the interested market segments. Sometimes, when the above four segmentation criteria cannot be used to summarize the market segments, it is necessary to consider using the above four criteria comprehensively. The more detailed the information, the better the choice of target market. The final market segment must at least meet the following requirements: the segmented market must be specific and clear, and it cannot be specious or generalized, otherwise it will lose its meaning; The subdivided market must be a potential market with the possibility of entry, which is meaningful to the enterprise. If the market potential is small or the entry cost is too high, there is no need for enterprises to consider such a market. Procter & Gamble has produced 1 1 brands of laundry detergent. The company also sells eight brands of soap; 6 shampoo; Four kinds of liquid tableware detergents; 4 kinds of toothpaste; 4 kinds of coffee; 3 kinds of floor cleaners and 3 kinds of toilet paper; Two deodorants, two cooking oils, two fabric softeners and two disposable diapers. And many brands have several models and formulas (for example, you can buy ordinary, tasteless, or bleached Tide washing powder, or liquid Tide in large or small packages).
These P&G brands compete with each other on the shelves of the same supermarket. However, why should P&G launch several brands in a product instead of focusing on launching a leading brand? The answer is that different people want to get different income combinations from the products they buy. Take washing powder as an example. The purpose of people using washing powder is to make clothes clean. However, they also want to get some other things from washing powder, such as economy and practicality, bleaching, soft fabric, fresh smell, strong or neutral, and more foam. Customers hope to get more or less of the above benefits from washing powder, but they just pay different attention to each benefit. For some people, cleaning and bleaching are the most important; For others, soft fabrics are the most important; Others want neutral washing powder with fresh fragrance. Therefore, there are different groups or market segments among the buyers of washing powder, and each market segment seeks its own special interest combination. Procter & Gamble has found at least 1 1 important detergent market segments and numerous sub-markets, and developed different brands to meet the special needs of each market segment. 1 1 P&G brand is positioned in different market segments.
Through market segmentation and the adoption of various brands of washing powder, Procter & Gamble has attracted consumers from all important preference groups. Its brand total in the US washing powder market of $3.2 billion has achieved 53% market share, which greatly exceeds the market share that can be achieved by only one brand.