3.1 Market Segmentation Process

The marketing segmentation process is based on a marketing strategy that allows producers to avoid head-on competition in the marketplace by differentiating their offerings on the basis of price and through styling packaging, promotional appeal, method of distribution, and superior service. The market segmentation process aim is to benefit the company through the dedication of specific service and product to each segment of the market. This will increase sales which will lead in increase in profits. There are three important objectives of the segmentation process:

to gain new customers,

sustain the existing consumers and introduce new products for the existing consumers and

Gain new ones.

In order to achieve these three objectives there are five steps that the market segmentation process follows:

1.	Establish the market and targeted consumers. In this step there is a lot of paperwork and surveys.

Economic and demographic factors are analyzed in the process.

2.	Market mapping: This step involves structuring the entire marketing procedures based upon the need of

the said market. This includes logistics cost, retail and wholesale cost, etc. Another very important factor

involved in this step is the targeting of consumers who are also known as decision makers. The...

3.1 Market Segmentation Process

...remaining three steps are derived on the basis of this step.

3.	Analysis of the consumers demand: In this step the demand by consumers and their suggestions are

largely viewed, surveyed, taken into consideration and in many cases implemented.

4.	Group consumers by need groups: In this step, the actual segment begins to take shape as

like-minded consumers having same demands are placed together and are analyzed as a group.

Launching a new product is viewed in this situation. This segregation is often based upon economic

indexes, demographic, geographic situations.

5.	Finding new markets: The last step is catering to the needs of existing consumers and finding

new markets.