Secondary Data Sources
The purpose for the type of search is to identify those specific groups, or segments, who have the wherewithal to purchase products or services from the new venture. These would include, for example, identified by income and education level, or the number of businesses in a region that would purchase a new type of pneumatic tool for cutting wood.
The segmentation process thus groups those customers who can be identified by demographic features that delineate common needs. Higher income and educated households are more likely to use computers than other types. People in different levels of the social class system have needs that are relatively homogeneous and permit the entrepreneur to pinpoint one or at most two groups up whom he or she might expect to sell a high quality PC system for example. There are a number of methods used to identify segments. One of the more important in consumer marketing is “psychographic” information. This grouping is based on similarities of personality, attitudes, lifestyles, social class and buying behavior. The next step is to identify the probable the probable links between the needs of those segments and specific product/services types.