What Is Product Segmentation? Definition of Product Segmentation, Product Segmentation Meaning and Concept
Product targeting is a commonly used type of targeting in marketing . Based on the usefulness of the product to divide into groups of consumers that have homogeneous characteristics.
It is important to add that it is a type of segmentation that turns out to be very effective. For this reason it is used very frequently. The segmentation is carried out taking as a reference the use that the consumer or the client makes of the product .
The most common in this form of segmentation is to take into account the frequency of use, the rate or amount of use and brand loyalty. For this reason, it cannot be forgotten that every product has the purpose of satisfying the needs of consumers. But, this segmentation is done with the aim of covering the consumer's need in a specific way.
What variables are used to segment?
1. Frequency of use or purchase
Naturally, the frequency of use or purchase allows us to determine how often they buy and consume our product. This variable can be obtained by averaging the purchases made by our consumers or customers.
Among these groups we can find:
to. regular user
Undoubtedly, the regular user is the person who frequently and repeatedly buys and uses the goods and services that the company offers to the market . Customers belonging to this segment buy frequently because they identify with the company's values or because they are satisfied with the quality of the products. They could also be people who buy it because they don't have another product available to them.
For example, a person who goes to a coffee shop every day before entering work to ask for a cup of coffee. One user might buy it because he likes the coffee he finds in that coffee shop and another because it is the only coffee shop he finds on his way to work.
b. not user
On the other hand, non-users are all the people who do not use our product. Likewise, it could be because you don't like our product or because it's not available where you need it. If you don't like the product, the company must obtain information to know how to improve or innovate the product.
Now, if you like it, but don't find it available where you need it, you'll need to improve your distribution system.
c. Former users
Former users are the people who used and bought our product, but then stopped buying it. The reasons could be that they consider our product to be of poor quality, or because they have received poor service, or because they found a better product in the competition. This is a group to which the company must pay special attention.
d. potential user
Whereas, potential users are the group of people who currently do not use our product. The reason could be because they do not know you, because they are not of the required age, or because of their marital status. This means that in the future they could be our consumers, so they must also be taken into account in the segmentation.
and. first time user
Finally, we find the first-time users. This segment includes people who are using our product for the first time. This is a determining group, since, depending on the experience they have of the product and the service, it will depend on whether or not they repeat the purchase.
2. Amount of use
In fact, the amount of use is another aspect that can be used to segment the market. The classification is made according to the amount of product that consumers or customers use in a given period of time.
The classification is as follows:
to. big users
First of all, we find the large users and they are the ones who buy in large quantities. It may also be the ones with the highest purchase rate within the market. It is usually a small number of consumers, but they buy in large volumes.
b. average users
Second, there are the average users. This group includes consumers who determine the average consumption of the product offered by the company. They represent the average consumption of this product for the company. In addition, it is the largest group.
c. small users
Third, we find the small users. These are the users who buy and consume the product in small quantities. Either because their purchasing power is low or because their personal habits mean that they do not consume much of that product.
3. For brand loyalty
When segmenting by product brand loyalty, we refer to the loyalty that the consumer expresses towards certain products. The groups that can be established in relation to brand loyalty are:
to. loyal users
Indeed, loyal users are users who only and exclusively use our products. They prefer our brand, they do not use the products of competing brands. These users have a positive image of the brand and communicate it among their contact groups. Finding groups of loyal customers is the best thing that can happen to a business.
b. Users with shared loyalty
Similarly, we find the group of shared loyalty. This group is made up of users who use the same product on the market, but buy our brand and other competing brands. It would be the case of people who like black carbonated waters. But they don't care if it's Coca Cola or Pepsi brand. For that reason, they are very sensitive to promotional stimuli or price changes.
c. user without preference
Finally, there are users without preference who do not show any predilection for a certain brand. For that reason, they are aware of price changes, promotional events and new benefits in products and services in general.
To finish , we can say that segmentation by product use can help any company to better identify its groups of customers and consumers. That way, you can better target each user group and better meet their needs. It can also help companies better tailor their pricing, communication, and distribution strategies for each identified segment.