How To Understand Market Segmentation(II)

Difference of Customer Demand

The difference of customer demand means that different customers have different needs. In the market, consumers always want to buy products according to their unique needs. We can divide the market into “homogeneous demand” and “heterogeneous demand” according to the differences of consumers’ needs.check here

Homogeneous demand refers to the fact that there is little difference in consumer demand, even neglected, so there is no need for market segmentation. Heterogeneous demand refers to the difference of consumers’ demand for product price, quality and style due to their different geographical location, social environment, psychology and purchase motivation. This difference in demand is the basis of our market segmentation.

Similarity of Customer Demand

Under the same geographical conditions, check here social environment and cultural background, people form sub-cultural groups with similar outlook on life and values. Their demand characteristics and consumption habits are roughly the same. It is precisely because of the relative homogeneity of consumer demand in some aspects that consumers with absolute differences in the market can aggregate into different groups according to certain standards. Therefore, the absolute difference of consumers’ demand leads to the necessity of market segmentation, and the relative homogeneity of consumer demand makes market segmentation possible.

Advantage of market segmentation

Favorable for selecting target market and formulating marketing strategy, After market segmentation, the sub-market is more specific, and it is easier to understand the needs of consumers. Enterprises can determine their target market according to their own business ideas, policies, production technology and marketing power. In view of the smaller target market, it is easy to formulate special marketing strategies. At the same time, in the subdivided market, information is easy to understand and feedback. Once the demand of consumers changes, enterprises can quickly change their marketing strategies and formulate corresponding countermeasures to adapt to the change of market demand and improve their adaptability and competitiveness.check here

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