Market Segmentation v/s product segmentation
Criteria |
Market Segmentation |
Product Segmentation |
---|---|---|
Definition |
separating the entire market into distinct segments based on shared characteristics or needs. |
Involves categorizing a business’s product offerings into distinct categories according to predetermined criteria. |
Focus |
focuses on comprehending and serving various customer segments of the market. |
focuses on ordering and matching specific client segments with individual items. |
Scope |
encompasses the entire market and its diverse customer base. |
focuses on an organization’s product portfolio and how it can be adapted to different audiences. |
Purpose |
Strives to improve product offerings, communication, and advertising strategies for diverse customer segments. |
Approaches to enhance product development, marketing, and communication for introducing items within the portfolio. |
Factors Considered |
demographics, psychographics, behavior, customer requirements, location, and geography. |
Utilize the designs, features, benefits, and specific characteristics of individual items. |
Example |
concentrating on various age groups and employing various marketing strategies for a skincare product. |
Organizing computers based on their intended purpose, which may include gaming PCs, business workstations, and similar categories. |
Application |
Broadly outlines approaches for advertising, public relations, and communication across the entire range of products. |
Directs product development, marketing approaches, and communication for specific items within the portfolio. |
Flexibility |
Necessitates flexibility as market dynamics and consumer behaviors undergo long-term changes. |
Necessitates flexibility as products evolve and market preferences for specific features or benefits change. |
Outcome |
increases in understanding of the market as a whole, customer loyalty, and brand tenacity. |
“Improves the allocation of resources, the value of products, and the effectiveness of promotions for specific items.” paraphrase this |
Product Segmentation: Definition, Importance and Examples
Product segmentation is defined as an essential tactic that has the power to make or break the success of your company. There exist multiple strategies to enhance your market share. First, by providing them with outstanding service, you should strengthen your bonds with your clients.
If you differentiate your business from the competition and offer your customers something they can only get there, you’ll attract more customers regularly. But it can be difficult when every other company is making the same effort.
Table of Content
- What is Product Segmentation?
- Importance of Product Segmentation
- How to conduct Product Segmentation?
- What is Customer Segmentation?
- Product Segmentation Examples
- Market Segmentation v/s product segmentation
- Advantages of Product Segmentation
- Disadvantages of Product Segmentation
- Conclusion: Product Segmentation
- FAQs on Product Segmentation