Functional maps
In this case, segmentation is performed twice - by product and by customer. There are 2 types of functional maps:
Single-factor. The target market is segmented twice by a single criterion and for the same type of product.
Multifactorial. It is determined which segments of buyers a specific product is targeted at. The most significant characteristics of this product are identified from the point of view of promotion on the market.
Functional maps help to employment database identify the key category of consumers for a given product and also determine the parameters of this group that satisfy the needs.
4 Rules of Market Segmentation
Exclusive products and mass-market products are promoted in different ways, including with different process depths. There is no universal and guaranteed successful segmentation method, since each specific case requires an individual approach. To do this:
Compare supply and demand with each other
Identifying the needs of the target audience and offering consumers the relevant services requires the manufacturer or seller to fully understand the current demand, as well as the characteristics of buyers. It is not always possible to analyze all these indicators, for example, in little-studied niches.
Be specific about the product characteristics
The more specific the commercial proposal, the more the audience is automatically segmented. This, in turn, has a positive effect on consumer interest. On the other hand, it is also not worth narrowing the characteristics too much, as this will lead to the opposite effect.
As a result, there will be only two groups: those who are passionate and those who are not interested in the product. For example, in the case of selling watches, it is necessary to specify what kind of products are being sold - pocket watches, wall watches or vintage watches. But further division down to specific models will not yield any results in the process of promotion.
Market Segmentation Rules
Detail key parameters
To tune out the desires of customers, it is useful to demonstrate to these people specific, relevant to this audience, product properties. Let's take as an example such a product as frying pans.
The slogan "Food does not burn" will be more effective in the promotion process than "Cooking without oil". The latter mainly affects housewives - a narrower part of the target clientele.
Analyze all parameters in detail
Market segmentation research often involves only a superficial analysis. But to obtain quality results, a company must study a number of indicators such as relevance, niche size, expected income, profitability, and competitiveness in as much depth as possible. Such work requires a lot of resources, including time.