Tag: types of market segmentation

Laptop with pen and spiral notebook on desk.

Analyzing Customer Behavior and Enhancing Profitability for a Fast Food Company with the Aid of Market Segmentation Strategies

Market Segmentation Strategies for the Food Industry 

About the Client 

The client is one of the world’s leading fast food store, with more than 77 outlets globally. The company sells high-quality fast food products and beverages, along with a variety of fresh food items.

The Business Challenge 

In the last decade, consumption of fast food has gone up by 20% and continues to tick upwards with each passing year. Despite there is a constant rise in the fast food industry, with customers’ expressing their desire for more wholesome and natural foods, the sales rate have been falling rapidly. Thus, in an approach to earn back customers’ trust, major players are taking an approach towards market segmentation strategies. With market segmentation strategies, major food companies are constantly looking for ways to divide a broad market comprising of prospective customers into smaller sub-groups so that seizing their attention with one marketing strategy is easier.

Business Case: With the rising competition in the market and evolving customer preferences, the client recognized the necessity for a strong targeted marketing approach and better market segmentation strategies to cater to the demands of the global customer base. So, the primary aim of the client was to develop market segmentation strategies that could meet their business goals and objectives. Moreover, with Infiniti’s market segmentation strategies, the client needed to gain a detailed understanding of the different consumer personas to ramp up their marketing initiatives. By leveraging Infiniti’s market segmentation strategies, the client also wanted to understand the importance of market segmentation in analyzing consumer behavior and preferences with regards to their food products.

Inaccurate market segmentation strategies results in wasting up of company resources! REQUEST FREE BROCHURE to learn more about our services and figure out the right target customers to market your products.

(more…)

Business Information Technology people work hard Data Analytics Statistics

Market Segmentation: A Key to Success for Pharmaceutical Companies

The idea of dividing a market up into homogeneous segments and targeting each of them with a distinct product or message, is now at the heart of marketing theory.

Rising costs and demands for affordable health care continue to challenge the traditional business assumptions and economics of the pharmaceutical industry. Also, this is raising internal development risks, costs, and time requirements for clinical trials. To add to the complexity, pharma markets have become fragmented as providers, patients, physicians, and payers look for focused solutions that have optimal safety and efficacy profits for a narrower population of patients. Additionally, the role of greater transparency, reference pricing, and changes in decision-making are essentially shifting decision-making authority away from individual physicians to healthcare administrators and payers. These dynamics result in the complexity of product decision-making and continue to challenge the effectiveness of traditional commercial models in the pharmaceutical industry.

This is where the role of market segmentation comes into play. Market segmentation process enables pharmaceutical companies to move beyond product features and benefits or brand position to see specific needs through the eyes of specific market segments and this is an essential component of success for pharmaceutical companies.

At Infiniti Research, we understand the impact that target market segmentation strategies can have on your business. And to help companies expand, diversify, and tackle market competition, our team of experts have highlighted a step by step guide to market segmentation to help pharma industry players become market leaders.

(more…)

IR28

Market Segmentation Strategies: 3 Major Challenges B2B Enterprises Face and Ways to Tackle Them

For business-to-business (B2B) enterprises, market segmentation process can be a powerful tool for tactical and strategic applications under growing pressure to better target prospects and customers. Market segmentation strategies have enjoyed extensive acceptance in the consumer world for decades. However, B2B market segmentation process has weakened due to several factors like marginal technical expertise, limited availability of accurate data, poorly differentiated advertising, and  inability to develop high-quality leads. But with the rising income and middle-class population globally, business to business enterprises can no longer ignore the B2B market segmentation process. Buyers seeking customized products, customer support, and attention and are forming very specialized markets. This scenario was earlier seen in consumer markets only, but it has now developed into the B2B market as well. In fact, market segmentation strategies are something that enterprises in B2B can no longer ignore and expect to achieve positive results. However, there are some critical challenges B2B enterprises face with viable market segmentation process. Are these challenges different from the oneGet More Infos experienced in consumer market segmentation and If yes, then how? what are the possible solutions? In this article, we have tried to answer all such questions.

Challenges in B2B Market Segmentation Strategies 

Challenge #1: Dealing with highly complex B2B markets

Decision making in B2B markets is quite different from decision making in consumer markets. In the B2B market, buying decisions are normally complex with rules that are intertwined and made by different individuals with varying levels of authority while in consumer markets decisions are simply made by one individual or several individuals. Furthermore, potential buyers in B2B markets are oblique, multifaceted, complex and ephemeral. This creates the dilemma in formulating market strategies for B2B enterprises. In simple terms, it is difficult to identify who exactly is the target buyer and who we should segment in the B2B market segmentation process.

Challenge #2: Buyers in B2B market are more rational

Buyers in B2B markets are more rational and therefore, to devise market segmentation strategies here, one needs to pay attention to the need of the business rather than segmenting based on consumer segmentation audiences. This poses the challenge; it becomes important for enterprises to identify what drives customers’ needs and because businesses are not individuals, this is not too easy, yet it is theonly viable option.

banner IR

Challenge #3: Complexity of B2B products

In B2B markets, products are usually tailored and that is why making market segmentation strategies a success is very difficult in these markets. Additionally, each product bought by a business is rarely being used in isolation, in most cases, it is only a part of a larger system. This has made it mandatory to include experts in the market segmentation process of these markets which makes the whole process expensive. However, in B2B markets, there is a small section of customers who are important enough that they actually rise behind the setback of B2B market segmentation process. They need to be regarded as a unique segment with their own specific needs. Otherwise, they will walk away, and the firm will incur a huge loss.

Infiniti’s Solutions

With the years of expertise in market intelligence services, Infiniti research help businesses to measure the effectiveness of a marketing campaign, identify the most profitable market segments, analyze changes in market expectations, and also devise value maximization market segmentation strategies to enhance their shares. Also, through market segmentation solutions and need analysis, Infiniti helps businesses to gain actionable insights into expanding, diversifying, and tackling market competition.


Are you looking for solutions to any of these challenges or want to know more about our market intelligence services?

Contact US

IT services industry

Gaining a Clearer Picture of Your Market with Market Segmentation

What is market segmentation process? 

Market segmentation process essentially involves grouping and sub-grouping large homogenous markets into clearly identifiable segments. The division is made on the basis of similarities in needs, wants, or demand characteristics. The market segmentation process also helps companies concentrate their marketing energy on various pre-defined market segments to gain a competitive advantage within that particular segment. Furthermore, marketers can easily personalize their marketing campaigns with this approach. It also reduces the risk of an unsuccessful or ineffective marketing campaign. Companies must choose the right type of market segmentation process that would best suit their marketing goals.Get More Info

Types of market segmentation 

Geographic segmentation

This is one of the most common types of market segmentation where companies segment the market by concentrating on various geographic areas. For instance, most restaurant chains are known to undertake their market segmentation process in such a manner that they focus on a limited geographic area to achieve the concentration of force. Moreover, consumer preferences vary from region to region. So, it is important for companies to choose that geographic segment that best aligns with their goals.

Psychographic segmentation

This is a strategy that takes into consideration the lifestyle of people, their activities, interests, as well as opinions to define a market segment. Such types of market segmentation take into consideration the psychographic aspects of the consumer’s buying behavior.  They also consider the psychological aspects of consumer buying. A popular example is fashion brands who market themselves based on the lifestyle and fashion needs of their target customers.

cta ir

Demographic segmentation

This is one of the simplest and most widely used types of market segmentation. In this market segmentation process, the population is divided based on variables such as age, gender, nationality, income, and occupation. The demographic segmentation variables help divide a large population into specific customer groups. One of the industries that makes use of this market segmentation process is the automobile industry. For instance, station wagons are designed to suit families with more number of members. On the other hand, a Ferrari is designed for high-end customers who have an interest in sports cars.

Behavioral segmentation

In this strategy, customers are grouped based on behavior, usage, and decision-making patterns. The products are marketed to target customers based on their behavioral patterns that define their likelihood to buy or not buy a particular product. Customers tend to evaluate several factors before they arrive at a decision about a purchase. Thus, consumer decision making is affected by this behavior and that is exactly how the behavioral segments are targeted.  Retailers make use of behavioral segmentation the most during festive seasons such as Christmas. The buying patterns of customers are higher during these times, prompting marketers to target these customers more and induce maximum sales.


Know how our solutions can help you reshape your market segmentation process

Ask An Analyst_IR