Pacific Business Daily

difference between market segmentation of product and services ?

related to the subject marketing

Public Comments

1. A market segmentation is composed of a group of buyers who share common characteristics, needs, purchasing behavior and consumption patterns. B2C market segments are usually defined and profiles with reference to a mix of demographic, geographic, psychographic and behavioral variables. B2B market sgements are commonly defined with reference to different variables and considerations that may include the industry type, the respective size, location and strategic important of different firms, the nature of the purchasing situation, anticipated purchasing volume and requirements and the potential for reciprocal purchasing and alliances. Many service organizations now also use profitability or potential yield as a furthur segmentation variable. In other words, the potential revenue and profitability that is likely to be contributed by one segment - consumer or business - as opposed to another is often an important consideration for service firms faced with the decision of which segments in particular to focus their attention on, and what service products to offer them. Additional segmentation variables that may prove useful and significant in a service setting include: - aesthetic tastes and preferences - quality expectations - special interests and requirements - socio cultural differences - required and expected benefits. Information about these, along with a mix of demographic, lifestyle, and psychographic profiling data, provide a marketer of a serivce with the means of determining not only who to target but also, and more important how.