1. Identify market segmentation goals
Market segmentation begins with marketing managers determining the basis for identifying the market. There are two basic methods for identifying and reflecting market segments. ① Management-oriented method. Select segmentation variables from the perspective of managers to define market segments.
② Market-oriented method. From the perspective of consumers, the characteristics of the evaluated consumers are determined through various surveys and testing methods to define market segments.
The purpose of the above two methods is to link consumer groups with certain characteristics with specific marketing combinations.
2. Market segmentation variable screening combination
This stage is to conduct an in-depth analysis of the consumer characteristics in each market segment based on the first step, so as to understand consumer needs at the qualitative and quantitative levels.
3. Predict market potential
This stage is actually to verify the economic feasibility of market segmentation. It is only a description of typical consumers and cannot produce market segments with practical commercial significance. Market potential is the fundamental criterion for corporate market segmentation decisions. The purpose of this stage is to determine the premise of market segmentation decisions, which includes not only judging the size of market potential, but also weighing market potential against available resources.
4. Predict the market share of the market segments
This stage mainly includes two basic tasks: analysis of the competitive position of the market segments; analysis of the preliminary marketing strategy plan for the specific market segments. These two tasks can be carried out at the same time. This stage is actually to prove the feasibility of entering the market segment. On the basis of estimating the market potential, the operating costs of entering the market segment should be measured.
5. Select a specific market segment
This stage is to analyze and compare the interests and goals of the market segments, evaluate the input and output efficiency and effect level, and also consider other important conditions for entering the market segments that are difficult to measure and evaluate, such as organization, environment, etc.