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Each of these product types is designed to meet the needs of specific market segments.Invert sugar and sugar syrups, for example, are marketed to food manufacturers where they are used in the production of conserves, chocolate and baked goods.Depending on company philosophy, resources, product type or market characteristics, a businesses may develop an undifferentiated approach or differentiated approach.

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Demographic and purchasing data were available for groups but rarely for individuals and secondly, advertising and distribution channels were available for groups, but rarely for single consumers.

Between 19, George B Waldron, working at Mahin's Advertising Agency in the United States used tax registers, city directories and census data to show advertisers the proportion of educated vs illiterate consumers and the earning capacity of different occupations etc.

Market segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on some type of shared characteristics.

In dividing or segmenting markets, researchers typically look for common characteristics such as shared needs, common interests, similar lifestyles or even similar demographic profiles.

Market segmentation is not only designed to identify the most profitable segments, but also to develop profiles of key segments in order to better understand their needs and purchase motivations.

Insights from segmentation analysis are subsequently used to support marketing strategy development and planning.Another solution, that came into vogue from the late sixteenth century, was to invite favoured customers into a back-room of the store, where goods were permanently on display.Yet another technique that emerged around the same time was to hold a showcase of goods in the shopkeeper's private home for the benefit of wealthier clients.Thus, segmentation was essentially a brand-driven process.Until relatively recently, most segmentation approaches have retained this tactical perspective in that they address immediate short-term decisions; such as describing the current “market served” and are concerned with informing marketing mix decisions.Samuel Pepys, for example, writing in 1660, describes being invited to the home of a retailer to view a wooden jack.


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