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Consumer Analysis and Marketing Strategy

One of the reasons studying consumer behaviour is to identify an effective market

segmentation. In brief, market segmentation is the process of splitting a market into several
consumers and selecting the most appropriate consumer/individual for the seller to sell. The
process is usually divided into 5 steps as :

1. Analyse consumer-product relationships : creating product concept and the

uniqueness of the product (attributes, benefits and values). Investigate further about
the target market and market size of the product.
2. Investigate segmentation bases : determining the segmentation base based on specific
type of segmentation (Benefit, psychographic, geographic, demographic,
sociocultural, affective & cognitive, behavioural and combined)
3. Develop product positioning : Once the company has the knowledge of their basic
segmentation then they must develop the positioning of the product competing the
Competitor. This associate with brand image and commonly divided into five
approaches (Attribute, Use or Application, Product User, Product Class, and by
Competitor)
4. Select segmentation strategy : the phase when the company should consider all
previous aspect related the nature of the product/characteristic of the market audience,
business objective. It's often effective to combine multiple segmentation strategies to
create a more comprehensive understanding of your market and tailor company
strategies accordingly. Three important criteria of creating strategy : Measurable,
Meaningful, and Marketable.
5. Design marketing mix strategy : When all previous steps were set up. The company
should finalize the marketing mix for each segment. It is important to consider all
aspects (product/price/place/promotion) work together creating an effective marketing
plan. Regular review should be done to monitor the performance/success of the
marketing mix strategy

Market segmentation is to enable businesses to serve their consumers in the best way
therefore it will increase customer satisfaction, brand loyalty, enhanced marketing efficiency,
diversifying the market, and improve overall business success.