Assessing The Stability of Market Segments Using Indexes

By : Rohit Vishal Kumar

Page No: 235-247

Abstract
The purpose of marketing is to match the needs and wants of the customers with the products and services offered by the producers. In order to do so effectively and efficiently, manufacturers and producers need to understand the consumer markets and plan their offerings. This is achieved by (a) deciding which consumer groups to focus on (segmenting and targeting) and (b) the image of the organisation that needs to be created in the marketplace (positioning). These two decisions are critical to the organisation as they decide on the long-term commitment of the organisation and cannot be easily reversed. In this paper, we aim to focus on understanding market segmentation stability using cluster indexes. We look at 10 cluster indexes and then demonstrate the process using a real-world database. It is to be remembered that the focus of this paper is not to make readers expert on segmentation but to demonstrate how we can create better segments using the modern tools and techniques available to us.

Author :
Rohit Vishal Kumar
Associate Professor (Marketing), International Management Institute, Bhubaneswar.
 

DOI: https://doi.org/10.32381/PROD.2021.62.03.3