Problem:
Market segmentation (MS) is very important because it allows organizations to identify the needs of the consumers and to identify what its products or services are in high demand, for example, the telecommunications industry has developed cellular phones that align with the trends of online social networking, (i.e. the new Kin phone.). In today's generation with Twitter, Facebook and various other networking sites, organization decided to hone in on new opportunities associated with international marketability, thus creating a stronger brand for the consumer. MS is pivotal in global expansion, increased profitability and sustainable customer relationships. An organization that anticipates astronomical generated revenue must attempt to segment their markets if they want to succeed in maintaining a competitive advantage.
How does market segmentation differ for consumer and business markets?
Market segmentation for consumer markets are generally based on four fundamental factors such as:
- "Geographic-region, climate, population density, and population growth.
- Demographic-age, gender, ethnicity, education, occupation, income and family status.
- Psychographic-values, attitudes and lifestyles.