Historical development of the concept of segmentation in the housing market and emergence of approaches towards segmentation

The subject of this research is the development of the concept of segmentation in the housing market and emergence of approaches towards segmentation. The object of is the term “segmentation” and approaches towards this method. The author examines the historical development of this concept, as well as the criteria for segmentation of commodities. Description is given to the methods of segmentation in the marketing sphere. The author determines the methods used for segmentation of real estate objects, as well as the variants of structurization and segmentation of the real estate market. The advantages of market segmentation in comparison with the traditional method of mass marketing are outlined. The author reveals that the concept of segmentation has existed for over 70 years. There are two traditional methods of segmentation used worldwide: “post hoc” and “a priory”. Segmentation of residential market is conducted via “a priory” method. The author detects the method used for segmentation of residential objects and the criteria in studying the residential market. The need for segmentation of residential objects is substantiated by the fact that consumer requirements change over time, and segmentation allows determining the target audience and preferences of the potential customers.