METHODS OF MARKET SEGMENTATION

There is large array of analytical techniques applicable to market segmentation . The most frequently used are briefly discussed below

CLUSTER ANALYSIS

Cluster analysis is a set of techniques for discovering structure, or group of individuals, with in a set of data comprising measures on each individual. The measure could be for example, on attitudinal battery. There is no dependent variable all variables are treated equally.

CONJOINT ANALYSIS

This technique aims to decompose preference in to components, such as brand, quality and price. This technique views products as bundles of attributes and use an experimental design to vary attribute levels to create product descriptions. Survey respondents rank the products and the analysis works out how much each attributes contributes to preference. It is a good technique for benefit segmentation.