Description Steps in Segmenting a Market The six-step process for segmenting a …

Description Steps in Segmenting a Market The six-step process for segmenting a market is as follows: Select a market or product category for study. Whether it’s a market in which the firm already competes, a new but related market or product category, or a totally new market, the overall market or product category should be clearly defined. ? Choose a basis or bases for segmenting the market: There are no foolproof procedures for selecting segmentation variables, but the segmentation scheme must produce segments that meet the four essential criteria discussed earlier in this chapter (substantiality, identifiability, and measurability, accessibility, and responsiveness). ? Select segmentation descriptors: Segmentation bases need to be clarified with descriptors to identify the specific segmentation variables to use. For example, if a company selects demographics as a basis of segmentation, it may use age, occupation, income, or some combination of these as descriptors. Profile and analyze segments: The purpose of this step is to determine the segments’ size, expected growth, purchase frequency, current brand usage, brand loyalty, and long-term sales and profit potential. Based on this information, marketers can rank potential market segments by profit opportunity, risk, consistency with organizational mission and objectives, and other factors. ? Select markets: Selecting markets is the outcome of this process. Design, implement, and maintain appropriate marketing mixes: Once the market has been selected, marketers can design the marketing mix. this refers to product choice, place (distribution), promotion, and pricing strategies. Here’s Your Assignment: Begin by choosing a product or product category that interests you. Next, prepare a detailed market segmentation analysis for this product by addressing the first three steps of the segmentation process above. In this submission, you should also describe your product, explain why your segmentation scheme meets the four essential criteria and provide your rationale for choosing your segment descriptors.