The third innovation-based manufacturing workshop was held on November 13, 2012 at Virginia Tech. Over 40 participants came to the workshop to learn from entreprenours and academics the critical aspects to consider when starting up a business. The workshop held also a student innovation competition where five finalists had the opportunity to present their ideas to a panel. The winner received an award of $5000 in funds to further develop his idea into a commercial product.
There are many different consumers in the world, each one have their own needs, behaviors and preferences. Kotler (2012) defines segmentation as grouping of costumers by related needs and behaviors inside a market. The main focus behind marketing segmentation is to allow business to invest and focus on real consumers behavior and patterns. (Gillian, 2011)
Although there are different cultures and populations around the world, some people need and aspire for similar things even thought they belong to different countries. (Russell, 2011). The principal objective of segmentation is to complement consumers with products that satisfy their individual set of needs and behavior patterns even if they do (http://www.12manage.com/description_market_segmentation.html) not belong to the same geographic location. (Gillian, 2011).
Today with the fast growing of consumer diversity is more important to business to differentiate their products or services from their competition. Gillian (2001) and Wood & Ehrlich (1991) agree in four different types of consumers market segmentation:
Geographical: a market divided by location such as region, state, country, etc.
Demographical: a market divided by demographic factors, such as age, nationality, occupation, etc.
Behavior: a market divided by the end use of their products or services.
Psychographic or understand risk: a market divided by correlate personality with brands.
Marketing segmentation does not have a formula that you can apply, because every business has different consumers that have special needs. But Wood & Ehrlich (1991) briefly describes 5 steps to segmenting a business-to-business or industrial market:
Eliminate any segments you don’t want or need.
Break the remaining market into smaller groups, using factors like geographic, demographic, personality and behavior as guidelines.
Consider the risk and rule out segments that seem to be too risky to tackle- at least for now.
Carefully evaluate the opportunities the remaining segments overall.
Prioritize to find the most attractive market segment overall.
Ones you know and target your segment, you’re ready to set a marketing and sale strategy for each segment that you decide to fit in.
There is a lot of work that combines marketing segmentation and industry in general, but when search about wood industry and marketing segmentation there’s few information about it. That gap need to be fill by researching in marketing segmentation technics with sustainable biomaterial industries such as wood.
Martin, G. (2011) The Importance of Marketing Segmentation. American Journal of Business Education. The Clute Institute. Vol. 4, No. 6, 2011.
Russell, A. (2011) Fragmentation and Segmentation: Marketing Global Benefits. International Business & Economics Research Journal. The Clute Institute. Vol. 10, No. 9, 2011.
Wood, M. & Ehrlich, E. (1991) Segmentation: Five steps to more effective business-to-business marketing. Sales & Marketing Management. Proquest. [Online]
Moriarty, M. & Venkatesan, M. (1978) Concept evaluation & market segmentation. Journal of Marketing. Proquest. [Online]
Kotler, K. (2001). A framework of marketing management. Prentice Hall.