The role of market segmentation in consumer behavior investigation

Abstract

The essence of market segmentation is investigated and its role in consumer behavior investigation is defined in this paper. Market segmentation is an important element of the company's marketing strategy, where various methods and approaches are used in order to define customer segments. It can have various models that establish the relationship of consumer behavior with the main criteria. According to these models, consumers are divided into target groups (segments). As the result, we obtain description of the process of analyzing consumers in relation to the basis of market segmentation. The main criteria for the segmentation of the market are indicated. The analysis of consumers of the network of grocery stores «Ridne selo» is carried out. The segmentation of individual consumers of the network and its competitors is performed. Based on the segmentation, socio-demographic portrait of consumers is obtained. The analysis of consumers of the network of grocery stores «Ridne selo» make it possible to identify the main target groups that can be targeted when developing a marketing strategy in the future. It is proved that market segmentation allows us to solve the main problems in consumer behavior investigation, since each product can be successfully sold only in certain market segments. At the same time, the competitive advantage lies in more complete satisfaction of the needs of a certain segment of consumers with minimal resource costs for servicing this segment. It is noted that the principle of doing business of the world's leading companies is that they produce only those goods that are needed by the consumer. The likelihood of selling these products is confirmed by market research based on market segmentation. The need for continuous analysis of consumers, identification of target segments for making effective decisions on sales and production and for domestic enterprises is noted. This will express the essence of the formation of effective enterprise marketing strategy. Market segmentation in the development of marketing strategy will contribute to the constant search for strategic target groups of consumers and the concentration of the seller's (manufacturer's) activities precisely on meeting their needs. This will provide them with competitive advantage and improved performance in the long term.