How to evaluate market segments, how to do market segmentation

Principles for evaluating market segments:

1. The market should have sufficient actual demand, and its demand level has reached the specific market expected by the enterprise.

2. The market has a relatively good potential development prospect, which reserves the development space for enterprises and the prospect of obtaining greater profits, which is conducive to the continuous development of the market.

3. The competition in the market is not very fierce, there are few competitors, or the competitors are not easy to beat people, or the company has an absolute or relative advantage in the competition in the market.

4. This market can be dissolved or entered through appropriate distribution channels. Otherwise it cannot be used as a niche.

Market segmentation allows startups to explore market opportunities, and the next step is to choose which market segment to enter. However, which market segment to enter cannot be blindly chosen, it is necessary to put forward higher requirements for each market segment, and make competitors fight with each other, which ultimately damages sales profits and makes the market unattractive. The best solution is to provide customers with a quality product or service that they can't refuse.

** Threats posed by increased bargaining power. If the market is able to raise prices or reduce the quality of products and services, or reduce the quantity, the market segment will not be attractive. The best solution is to establish a good relationship with the best businessmen and strive to develop a variety of best channels.

Entrepreneur's Goals and Resources Even if a market segment has a certain size and development characteristics, and its organizational structure is attractive, entrepreneurs still need to consider their own goals and resources in conjunction with the situation in their market segment. Some market segments, while more attractive, do not meet the long-term goals of the entrepreneur and therefore have to be abandoned. This is because these segments may be attractive on their own, but they don't push entrepreneurs to accomplish their goals, or even distract them from their main goals.

Even if this segment aligns with the entrepreneur's goals, the entrepreneur must consider whether the start-up has the skills and resources necessary to succeed in that segment. Regardless of the market segment, there are certain conditions that must be met to succeed in it. If the entrepreneur lacks the necessary capabilities in one or some aspects of a certain market segment and is unable to obtain the necessary capabilities, the entrepreneur also abandons the segment.

Even if the entrepreneur has the necessary abilities, it is not enough. If the entrepreneur can indeed succeed in the market segment, he or she also needs to develop an advantage to overwhelm the competition, and if the entrepreneur cannot create some form of dominant position in the market or the niche market, he should not be rash.

Market Segmentation! A personal opinion is all about positioning.

in order to make their products more competitive.

When we evaluate a market, we should first evaluate the purchasing power of the market, and the purchasing power includes the buying group, which are the buying groups, such as mainly housewives, young girls, children or the elderly, and evaluate the market in more detail, which will help us do better market analysis.

Market segmentation should follow certain procedures, which are generally divided into the following steps.

1 Selected product market range.

Enterprises should determine the scope of market entry according to their own operating conditions and operating capabilities, such as what industries to enter, what products to produce, what services to provide, etc., and use this as the basis for formulating market development strategies.

2 List the needs of potential customers.

The needs of all potential customers within the market can be listed in terms of geography, demographics, psychology, behavior, etc.

3. Analyze the different needs of potential customers.

According to the various needs listed, the market segments with the largest differences are preliminarily divided, and then different potential customers are sampled, and the listed demand factors are evaluated to understand the common needs of customers.

4 Select the target market.

Investigate, analyze, and evaluate each market segment, eliminate unsatisfactory and useless market segments, and finally determine the market segments that can be entered, that is, the target market.

After the above steps, the company has completed the work of market segmentation, and then can develop and adopt the corresponding marketing strategy for the target market.

Correct answer: Enterprises evaluate different market segments, generally considering the following factors: (1) the size and development prospects of the market segments.

2) The profitability potential of the segment. This is a fundamental factor in determining whether a business should enter that market or not. (3) The company's target and resources.

If the product and marketing mix required for the alternative market segment does not match the company's development goals, or the resources do not match, the company should consider not entering the market segment.

(1) Geographical segmentation means that enterprises segment the consumer market according to the geographical location of consumers and other geographical variables (including urban and rural, terrain and climate, transportation, etc.). The main theoretical basis for geographical segmentation is that consumers in different geographical locations have different responses to the marketing strategies adopted by the company, and to the marketing measures such as products, distribution channels, and advertising of the company.

2) Demographic segmentation, that is, enterprises segment the consumer market according to demographic variables (including age, gender, income, occupation, education level, family size, family life cycle stage, religion, race, nationality, etc.).

3) Psychological segmentation is to segment the consumer market according to the consumer's lifestyle, personality and other psychological variables.

4) Behavioral segmentation, that is, enterprises segment the consumer market according to behavioral variables such as the timing of consumers buying or using a certain product, the interests pursued by consumers, the situation of users, the use rate of consumers to a certain product, the loyalty of consumers to the brand (or store), the stage of consumers waiting to buy and consumers' attitudes towards products.