2 Main Market Segmentation Approach

To build a segmentation strategy, the first step is to determine the appropriate segment according to segmentation approach. Generally there are two main approaches namely a-priori approach and post- hoc approach.

A-priori approach is the approach taken before a study was conducted, where researchers have boxes market based on characteristics such as the geographic, demographic, psychological, psychographic (life style), sociocultural, use related segmentation, use-situation segmentation, benefits, and hybrid segmentation.

Post-hoc approach is an approach that does not boxes market before the data were collected and analyzed. Segments created after the data were collected and analyzed according to attributes which are considered important by researchers. So post-hoc approach is research-oriented approach and developed for specific products at a given time range. Thus the marketers power rely heavily on knowledge of product and market. Knowledge is what will guide marketers determine the proper attributes are used as the basis for segmentation analysis performed. This knowledge determines the sensitivity of marketers in watching the market.

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