|Rosella Predictive Knowledge & Data Mining|
Market Segmentation for Segmentation Marketing
Why market segmentation? People with similar attributes tend to display similar propensities in their purchasing behaviors. This is often accompanied by social fads and trends that may be specific to certain market segments. Market segmentation is a process that segments a market into smaller sub-markets, called segments. Segments are to be homogeneous or have similar attributes. Purchasing patterns and trends can appear prominently in certain segments. Good market segmentation is to create segments where prominent patterns can emerge. Market segmentation may be used to analyze the followings;
Market segmentation for Market trend analysis
Market segmentation creates segments with the same or similar attributes. It normally uses the following attributes to generate market segments. One or more of the attributes may be used to define market segments.
Segmentation provides opportunities for trend analysis. Trends and patterns embedded in changes of sales revenues can be useful indicators for market shifts. Trend analysis may answer the following types of segment trend information;
Market trend analytics
Segment-by segment market trend analysis and forecast Excel Addin tools is described in sales trend analysis in detail.
Market segmentation for Direct marketing and Database marketing
Generally, direct marketing is based on database marketing where database is used as the medium to record customer information. Database often contain variety of customer information that can be used in designing market segmentation, more specifically, predictive segmentation. Predictive market segmentation is described in detail in Customer Segmentation.