Market segmentation means that enterprises divide customers into several customer groups according to certain standards. Each customer group constitutes a sub-market. There are obvious differences in demand among different sub-markets.check here
Market segmentation is the foundation of choosing target market. Marketing activities in an enterprise include subdividing a market and taking it as the company’s target market, designing the right combination of products, services, prices, check here promotions and distribution systems to meet the needs and desires of customers in the subdivided market.
Introduction about market segmentation
The concept of market segmentation was put forward by Wendell R. Smith, an American market scientist, in 1956.
According to consumers’ desire and demand, the general market which is difficult for enterprises to serve because of its large scale is divided into several sub-markets with common characteristics. The consumer groups in the same sub-market are called target consumer groups. check here Compared with the mass market, the consumer groups in these target sub-markets are divided.
It is a new development of enterprise marketing thought and strategy under the new market form that many product markets in the United States changed from seller’s market to buyer’s market after the end of World War II. It is also an inevitable outcome of enterprise’s implementation of modern marketing concept centered on consumers.