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The section on segmentation refers to the main process, market segmentation, but the page is on Segmentation, which is the first step of the model. The new paragraph makes the distinction clear. |
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== Segmenting ==
{{See|Market analysis|Market segmentation}}
[[Market segmentation]] is the act of dividing the market into distinct and meaningful groups of buyers who might merit separate products or marketing mixes.<ref name=":5">{{Cite journal |last=Beane |first=T.P. |last2=Ennis |first2=D.M. |date=1987-01-01 |title=Market Segmentation: A Review |url=https://doi.org/10.1108/EUM0000000004695 |journal=European Journal of Marketing |volume=21 |issue=5 |pages=20–42 |doi=10.1108/EUM0000000004695 |issn=0309-0566}}</ref> In the S-T-P framework, ''segmentation'' means classifying consumers into categories. Therefore, segmentation has two meanings: it denotes both the overall process ([[market segmentation]])<ref name=":5" /> and the first step of the S-T-P framework,<ref name=":6">{{Cite journal |last=Diaz Ruiz |first=Carlos A. |last2=Kjellberg |first2=Hans |date=2020 |title=Feral segmentation: How cultural intermediaries perform market segmentation in the wild |url=http://journals.sagepub.com/doi/10.1177/1470593120920330 |journal=Marketing Theory |language=en |volume=20 |issue=4 |pages=429–457 |doi=10.1177/1470593120920330 |issn=1470-5931}}</ref> the identification of consumer segments. This section refers to the first step of the S-T-P model.
Segmenting can be referred to as a process of segregating the market on the basis of different variables.<ref>{{Cite web|last=Alter|first=Tom|date=June 14, 2018|title=What is STP model in Marketing?|url=https://www.makemyassignments.com/blog/what-is-the-stp-model-in-marketing/|url-status=live|access-date=November 22, 2021|website=Make My Assignments}}</ref> However, segmenting a market has widely been debated over the years as researchers have argued over what variables to consider when dividing the market. Approaches through social, economic and individual factors, such as brand loyalty, have been considered<ref>{{Cite book|title = Marketing, Planning and Strategy|last = Jain|first = S C|publisher = South-Western Publishing Co.|year = 1993|___location = Cincinnati, OH, United States}}</ref> along with the more widely recognized geographic, psychographics, demographic and behavioral variables proposed by Philip Kotler.<ref>{{Cite book|title = Marketing Management Analysis, Planning, Implementation, and Control|last = Kotler|first = Philip|publisher = Prentice Hall International|year = 1997|___location = New Jersey}}</ref> Since a single product offered by a firm cannot satisfy the needs of all of the consumers, segmenting a market therefore, is a process of ''organising'' the market into groups that a business can gain a competitive advantage in and satisfy its needs. They must, however, avoid over-fragmenting the market as the diversity can make it difficult to profitably serve the smaller markets.<ref name=":1">{{Cite book|title = Business to Business Marketing|last1 = Vitale|first1 = Robert|last2 = Giglierano|first2 = Joseph|publisher = South-Western publishing|year = 2002|___location = Mason, Ohio}}</ref> The characteristics marketers are looking for are measurability, accessibility, sustainability and actionability.
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An analytic approach is a much more research and data based approach, where two sets of information are derived and used to segment the market.<ref name=":1" /> The two approaches give the business an idea for the future profitability of a segment, and the tendencies and behaviours it portrays. The first approach gives them an idea on the future growth of the segment, and whether its investment outcome is worthwhile. This, therefore, will usually be done in advance. The second approach is more based around the observation of the buying behaviours of the segment and is more based around primary research.<ref name=":1" />
The discovery approach, also called ''feral segmentation'',<ref name=":6" /> is more suited to a market with a limited customer base, and the process of discovering segments is based on interest in the offer or a similar offer the business may be able to provide.<ref name=":1" /> Because of this, a discovery-based approach is a much timelier process by which to determine the profitable segments. Both approaches can benefit from elements of the other and, in most situations, work well in unison with each other when determining a profitable and defined segment.<ref name=":1" />
== Targeting ==
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