← Lessons 07-Marketing Strategies and Principles
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1. INTRODUCTION 2. SWOT ANALYSIS 3. THE MARKETING MIX 4. PRODUCT LIFE CYCLES 5. MARKET SEGMENTATION 6. MARKETING RESEARCH – INTRODUCTION 7. SECONDARY DATA 8. PRIMARY DATA 9. PUBLIC RELATIONS 10. SALES 11. CONCLUSION 12. QUICK EXAM FACTS – MEMORISE THESE 13. FINAL MEMORY CHECKLIST

5. MARKET SEGMENTATION

  • Market segmentation means dividing a market into identifiable sub-markets or ‘segments’ with particular customer characteristics.
  • Possible bases for segmentation include:
  • Geographical area
  • Size of customer
  • Products produced by customers
  • The aim is to divide the overall potential market into smaller, accurately identified groups with similar service requirements.
  • Road freight segmentation is well developed, with specialised services aimed at particular business sectors.
  • Examples include:
  • Specialised hanging-garment transport for High Street retailers
  • Frozen and chilled food transport
  • Dangerous-substances delivery services
  • Larger companies may create separate companies or specialised operating divisions for different segments.
  • Customers in specialised segments may be willing to pay a premium for higher levels of service.
  • Specialisation can therefore help the business achieve its profit requirements.