The process of selecting the preferred market segment to promote...

The process of selecting the preferred market segment to promote innovation

The choice of the target segment (s) by the firm implies the fulfillment of a number of typical actions performed in the following sequence:

1) choice of principles of market segmentation;

2) development of profiles of selected market segments;

3) evaluation of selected segments of the market from the point of view of the company's economic interests;

4) selection of the target segment (s);

5) development of marketing complex (s) for the selected segment (s) of the market.

The approach to segmentation is chosen by the firm depending on the type of new products, market characteristics, goals, tasks, conditions and opportunities for own activity. Obviously, there are significant differences in the segmentation of the consumer goods market and the industrial goods market. The segmentation of the industrial consumer market has its own peculiarities, primarily due to the fact that goods and services are purchased by them not for their own final consumption, but for use in the process of creating products intended for subsequent sale to own consumers. In addition, consumers-organizations themselves are very different from each other and operate in completely different markets. All this determines the rather limited possibilities of using a priori segmentation and makes the a posteriori approach more widely used. In this case, one should take into account the fact that the buyers here are professionals who are familiar with the technical and technological features of the creation and operation (use) of the goods purchased. This, in turn, determines the features of the purchase motivation, the nature of decision-making, and, consequently, the mechanism of influence on these decisions, which differ significantly from the solutions inherent in the consumer goods market. Next, consider separately the segmentation of consumer and industrial goods markets.

Principles of segmentation for innovation in consumer products

As a rule, a standard set of a priori segmentation bases is used in the consumer goods market (Table 2.8), from which the goods most significant in this market are selected.

Table 2.8

A typical set of bases for a priori segmentation of consumer goods markets


Principles of Segmentation




Family size


Level of education


Professional Affiliation

Religious belonging, nationality

Social class


Y income level

Payment Methods



Personality type

Attitude to health


Features of leisure activities

Attitude to Innovations



Administrative Unit

Population density

Nature and Climate

Climate zones

Annual temperature variation

Accommodation conditions

Features of the area of ​​residence

Features of housing


Health status

Physiological features

Depending on age, customer preferences are changing. The most standard segmentation interval is a period of 10 years. There are obvious differences in the needs of people of different sexes. The size of the family can be used as a base for segmentation for household goods.

Social and economic differences, such as income and social class, are also important for understanding the patterns of spending money and using products in many consumer goods markets. As income increases, consumers tend to live in better homes, eat better food and enjoy a wider range of entertainment. Similarly, the social class can exert a powerful influence on the preferences in clothing, education, reading and leisure activities.

Geographical differences are probably the oldest base for market segmentation. Traditionally, this way, many markets of food, clothing and heating systems are segmented. Nevertheless, segmentation by geographic feature makes sense, because geographic division reflects the barriers between cultures and lifestyles. " In other words, geographical division is methodically more convenient (more simple) way of segmentation in the way of life (culture) and makes sense if it coincides or significantly correlates with the indicated differences. Although F. Kotler and notes that there is a causal relationship: the way of life is formed by the environment, but the main content component of segmentation here for him is still the culture and way of life. In addition, cultures are not uniquely determined by the natural environment, but, on the contrary, can seriously differ.

Differences in the type of personality and way of life often make it profitable to offer different goods, use different levels of prices and (or) distribution systems. Psychological differences of this kind represent a powerful base for segmenting the market, when on their basis consumers are offered unique, specially designed trademarks for them.

There are also a number of a posteriori segmentation bases also used to describe differences among consumers, and very often they are the most productive in terms of defining new business opportunities.

Examples of the most commonly used behavioral bases of segmentation are: the rate (volume) of consumption, the degree of randomness of purchases, loyalty to the brand, the level of interest, attitude to the new product.

Thus, the market can be divided into those who do not use the product, potential users, former users, those who use the product for the first time, and those who use it regularly. The last group of consumers can be divided into those who use the product rarely, moderately and actively (the latter are also called addicted to the product). In addition, consumers of all types can be divided into adherents of the product and those who are not.

The benefits that consumers see in a product or service can also be a powerful base for segmenting the market. With the help of this approach, it is possible to clearly identify opportunities for offering various products and compiling relevant advertising messages. The desired benefits may include satisfying needs, quality of workmanship, quality of work, image, service and much more.

Principles of segmentation for innovation in industrial products. The principles of segmentation of industrial innovation markets will differ from those applied in consumer goods markets, although there are also the same principles.

In the first approximation, you can use the following characteristics:

• a priori - the type of industry, the size of the company, geographic location, technological base, consumer status, end use, volume of consumption, financial position, place in the chain producer - end user & quot ;;

• a posteriori - procurement policy, seller-buyer relationship, desired benefits. We can suggest the following table of principles of segmentation for industrial markets (Table 2.9).

Table 2.9

Basic Principles for Segmenting the Industrial Market



A priori principles

Company profile

Industrial firms, science, service industry, etc.


Mechanical engineering, transport, shipbuilding, nuclear industry, etc.

Firm size

Small firms, medium-sized firms, large firms

Order volume

Large order quantity, small order quantity, etc.


State organizations and enterprises, private companies (JSC, CJSC, etc.)




Terms of delivery of goods that suit the customer (readiness to perform an emergency unexpected delivery of goods)

Location of the customer's company

Differences arising due to climatic, natural conditions of operation of the goods

Customer's financial position

Highly insolvent firms; firms experiencing financial difficulties, etc.

Place in the chain producer - end user

The manufacturer of the goods for final consumption, the manufacturer of units and units, the manufacturer of related services, etc.

A posteriori principles



Priority is given to quality, service level, price, etc.

Risk Attitudes

They like to take risks, they are ready to buy new technologies; tend to avoid risk, are not ready to buy new products


Firms exhibiting a high degree of devotion to one supplier; flyers

Degree of product awareness

The company that first received information about this product; old customers

Degree of technological development

Firms with advanced technology and qualified personnel; firms using backward technology

The psychological type of persons making a purchasing decision

Sanguine, melancholic, etc.

Purchasing Policy

Firms who prefer to purchase on the basis of leasing; firms that prefer direct purchase, etc.

In practice, a clear separation of a priori and a posteriori approaches is difficult, since some a posteriori characteristics may be a direct consequence of a priori. It should be remembered that in the industrial market it is desirable to use an individual approach strategy to each buyer. In each specific case, the principles of segmentation of industrial consumers will be unique, and it is unlikely to be reasonable to try to systematize them clearly.

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