【market segmentation】Market segmentation is the process of dividing a broad market into subgroups of consumers with similar characteristics, needs, or behaviors. This approach allows businesses to better understand their target audience and tailor their marketing strategies accordingly. By identifying distinct segments, companies can improve product development, pricing, promotion, and distribution efforts.
Below is a summary of key aspects of market segmentation, followed by a detailed table for quick reference.
Summary
Market segmentation helps businesses focus on specific groups of customers rather than treating the entire market as one. It is based on various factors such as demographics, geography, psychographics, and behavior. The main goal is to create more effective marketing strategies that resonate with each segment. Successful segmentation requires accurate data, clear criteria, and an understanding of customer needs.
Market Segmentation – Key Aspects
| Aspect | Description |
| Definition | Dividing a large market into smaller, more manageable groups based on shared characteristics. |
| Purpose | To better understand customer needs and deliver targeted marketing efforts. |
| Types | Demographic, Geographic, Psychographic, Behavioral. |
| Benefits | Improved customer satisfaction, efficient resource allocation, stronger brand positioning. |
| Challenges | Data collection, changing consumer preferences, over-segmentation. |
| Tools | Surveys, customer data analysis, market research, CRM systems. |
| Examples | A clothing brand targeting young adults (demographic), or a tech company focusing on urban areas (geographic). |
By effectively implementing market segmentation, businesses can enhance their competitive advantage and build deeper connections with their customers.
