"Market segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers based on shared characteristics."
A customer segment is a group of individuals with similar needs, preferences, and behavior patterns. Identifying and targeting specific customer segments allows businesses to better tailor their offerings and marketing strategies.
Customer segmentation: Understanding how customers can be grouped based on shared characteristics, behaviors, and traits.
Value proposition: Identifying the unique value your business offers to a particular customer segment.
Customer profiling: Creating detailed profiles of your ideal customers through research and analysis.
Customer needs and wants: Understanding the specific needs, desires, and pain points of your target customer segment.
Market analysis: Evaluating the size, growth potential, and competition within a particular customer segment.
Marketing strategies: Developing effective marketing messaging and methods to reach and engage with your target customers.
Customer acquisition: Developing strategies to attract new customers and increase market share within a given customer segment.
Customer retention: Maintaining customer loyalty and ensuring customer satisfaction among existing customers.
Customer lifetime value: Understanding the total value a particular customer segment can provide over the course of their relationship with your business.
Sales and distribution channels: Identifying effective sales channels and distribution methods for your products or services within a particular customer segment.
Customer feedback and evaluation: Gathering and analyzing customer feedback and data to refine and improve your business model and offerings.
Business model innovation: Developing new and innovative business models or adapting existing models to better fit the needs of a particular customer segment.
Competitive advantage: Identifying and leveraging unique advantages or strengths that give your business an edge in the marketplace.
Data analytics and metrics: Using data and metrics to measure and track customer behavior, trends, and ROI for your business.
Mass market segment: A large group of customers with similar needs and wants.
Niche segment: A small group of customers with specific needs and wants that are not catered to by mass-market offerings.
Segmented segment: Dividing the market into subgroups of customers with different needs and preferences.
Multi-sided platform segment: Catering to two or more customer groups (e.g. Uber, Airbnb).
Customer Persona segment: Creating profiles of different customers to better understand and cater to their needs (e.g. buyer personas).
Geographic segment: Catering to customers from specific regions or locations.
Demographic segment: Catering to customers based on age, gender, income, education, etc.
Psychographic segment: Catering to customers based on their personality, behavior, and lifestyle.
Behavioral segment: Catering to customers based on their purchase history, frequency, and loyalty.
Social Responsibility segment: Catering to customers who value companies that are socially responsible and environmentally conscious.
"In dividing or segmenting markets, researchers typically look for common characteristics such as shared needs, common interests, similar lifestyles, or even similar demographic profiles."
"The overall aim of segmentation is to identify high yield segments - that is, those segments that are likely to be the most profitable or that have growth potential - so that these can be selected for special attention (i.e. become target markets)."
"B2B sellers might segment the market into different types of businesses or countries."
"B2C sellers might segment the market into demographic segments, such as lifestyle, behavior, or socioeconomic status."
"Market segmentation assumes that different market segments require different marketing programs - that is, different offers, prices, promotions, distribution, or some combination of marketing variables."
"The purpose of developing profiles of key segments is to better understand their needs and purchase motivations."
"Insights from segmentation analysis are subsequently used to support marketing strategy development and planning."
"Many marketers use the S-T-P approach; Segmentation -> Targeting -> Positioning to provide the framework for marketing planning objectives."
"The first step in the S-T-P approach is segmentation."
"The second step in the S-T-P approach is targeting."
"The third step in the S-T-P approach is positioning."
"When a market is segmented, one or more segments are selected for targeting."
"Products or services are positioned in a way that resonates with the selected target market or markets."
"The purpose of dividing or segmenting markets is to identify high yield segments."
"Researchers typically look for common characteristics such as shared needs, common interests, similar lifestyles, or even similar demographic profiles."
"Segments that are likely to be the most profitable or that have growth potential are selected for special attention."
"Different offers, prices, promotions, distribution, or some combination of marketing variables may differ for different market segments."
"The main goal of market segmentation is to identify high yield segments."
"Segment profiling is important in marketing to better understand the needs and purchase motivations of key segments."