I have been asked by a client to explain what the meaning of market segmentation is. So while I was explaining its importance to her, I thought it would be a good topic for my latest post. A job which I have been a bit slack at last month!! (Something I would tell our clients is not acceptable)
Any way I digress.
Market Segmentation.
Can be described as the process of defining and subdividing a large market into segments of that market. All of which have similar, identifiable characteristics. Each of these then becomes a segment and hence the term market segmentation.
The most common market segmentation strategies are to divide a given market by.
Behavioural Differences:
which divides potential clients into a segment based on the way they respond to or use a product or even their perception of a product or service.
Demographic Differences:
where you divide a market into groups based on such things as age, gender, family size, social class, income, occupation, education, nationality, or race.
Psychographic Differences:
when you divide the market into segments based on their attitudes, their expectations and their activities. In this you may consider such things as lifestyle. (For instance a nappy manufacturer may market to a segment of the market that have a baby coming or young child, but would not market to another segment that is the over 50’s)
Geographical Differences:
where market segmentation considers the areas where people live, this may be International (such as Australia and New Zealand), National (North Island and South Island). Regional (Auckland and Canterbury). Areas (Remuera and Mangere). You can even perform geographical segmentation on a street by street basis.
If you would like more information on how to carry out market segmentation drop us a line here at Assist Marketing
- Market Segmentation
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