Purpose and background:

Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. The segments created are composed of customers who can respond equally to promoting ways and who share traits like similar interests, needs, or locations.

Scope and responsibilities:

Market segmentation helps marketers to devise and implement relevant strategies to promote their products amongst the target market. A market section consists of people who have similar choices, interests and preferences. They generally assume on a similar lines and are inclined towards similar products.Once the organizations pick their target market, they will simply formulate ways and plans to make their brands popular amongst the customers.

Procedure and methodologies:

A) E-surveys– A powerful qualitative tool to collate information from relevant, focused groups of respondents or alternatively from anonymous, but genuine respondents.

B) Observation– One of the oldest techniques in market research; observation is nothing, but mystery shopping done with the help of modern, electronic devices.

C) Data analysis– Qualitative and quantitative data analysis is done by researchers and by using certain software in order to derive an accurate outcome.