The Importance of Segmentation

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Mercedes cars;
Four Seasons Hotels and Resorts chain;
Grocery store "Azbuka Vkusa".
Price segment "luxury"
Manufacturers of luxury goods position them as unique and status-rich. They do not hide their high prices, but explain this by the fact that their products are special. Examples of the luxury segment:

clothing brands: Chanel, Prada;
Rolex watches;
Lamborghini cars;
Emirates air carrier.
Reasons for dividing goods and services into price segments
Each consumer belongs to a specific target audience. Even at 25, 45 and 65 years old, the same person has different motivations and purchasing power. It is impossible to create a universal product for all people. Therefore, it is necessary to divide the audience into groups and make products for each of them. This will help to hit the requests, financial expectations and needs of each consumer and effectively conduct sales. If you do not segment products by cost, then there will be risks for the business:

a lot of low-priced goods, which will eventually lead to benin telegram data a decrease in profits;
Incorrect pricing policies, such as selling single-ply toilet paper for a lot of money, which leads to people stopping buying it.
What is a price segment and its types - image 5

Products of different price segments may have the same characteristics but differ in price

Defining price segments solves the main task - attracting buyers to different groups of goods. Segmentation is needed to:

increase profits by offering products at different prices for different target audiences. This division allows you to reach more customers;
to satisfy the interests of consumers with different financial capabilities. That is, to create product groups that are attractive to many people;
expand your sales market. If you offer services and products to new target audience groups, you can increase your influence in the market;
determine the cost price of goods. This is especially useful for luxury products, for which the price can be increased;
handle possible objections from customers about the price. That is, find an approach to each consumer. If a person does not want to buy a product because it has regular packaging and no special features, but is ready to spend more money on premium products, then you can offer him an option with special features and in designer packaging;
predict profits. Knowing at what price people will buy a product, you can calculate the business's profits in the future.