The actions a company takes to promote the sale of their product or service.
Market segmentation is a way of dividing a market into targetable groups based on shared characteristics. Companies use market segmentation to better understand the needs of their customers and customize their products or services accordingly. By segmenting markets, companies can also create marketing campaigns that are more targeted and effective.
Understanding Market Segmentation
Types of Market Segmentation
Demographic Geographic Psychographic Behavioral
Demographic market segmentation is the practice of dividing up consumers into groups based on their age, gender, income, etc. Identifying the right demographic can help businesses create more effective marketing strategies. Analyzing demographic data can help businesses better understand their target audience.
Demographic Market Segmentation
What are the most important elements of demographic market segmentation?
- Geographic location
- Income level
- Education level
Geographic Market Segmentation: A method used by marketers to divide customers into different groups based on their geographic location. (such as country, state, city) Segmenting markets geographically helps businesses understand consumer needs. Companies can identify geographic locations where their products or services are in demand. Businesses can target marketing efforts to areas with the highest potential for success.
Geographic Market Segmentation
What product would be good to market to people in Alaska??
Brain break: Draw a pineapple playing beach volleyball with a watermelon
Psychographic market segmentation is a marketing strategy that divides people into different groups based on lifestyle, values, attitudes, and interests. It can be used to understand consumer behavior, motivations, and preferences. It helps businesses tailor their products and services to different groups of consumers. Focuses on customers as people
Psychographic Market Segmentation
Ex: of Psychographic Segmentation
Vegan Weight Lifter Christian Soccer Player Pet Lovers Runner Artsy Outdoors
A type of marketing strategy which divides a large group of customers into smaller groups based on behavior This helps businesses target their audience more effectively by understanding their needs and preferences. It allows businesses to customize their products and services to meet the needs of each customer segment.
Behavioral Market Segmentation
Behavioral market segmentation helps marketers create more effective campaigns by understanding how consumers behave and what motivates them. It is possible to segment markets by the number of times customers purchase a product, how often they interact with a brand or product, and how often they use a product. Behavioral segmentation examples Early Risers Repeat Buyers Brand Loyalty Social Media Usage
What is market segmentation?
- A marketing strategy to target every customer individually
- The process of dividing a broad market into smaller, more manageable segments based on similar characteristics
- The act of selling products in a marketplace
What are some of the common ways companies segment a market?
Why do companies use market segmentation?
- To sell more products to as many customers as possible
- To reduce competition in the market
- To better understand and meet the needs of specific customer groups
How do companies benefit from using market segmentation?
- Companies can reach a larger audience by targeting everyone with their marketing efforts
- Companies can save money by not investing in marketing at all
- Companies can tailor their marketing strategies to specific customer segments, leading to higher sales and customer satisfaction
What are some common bases for segmenting markets?
- Advertising budget
- Demographics (age, gender, income), Psychographics (lifestyle, personality), Geographic location
- Brand loyalty, Market share, Profitability
With Your Table
Segment the potential markets of Timothy using Demographic, Geographic, Psychographic and Behavioral market segmentation and pick a product and how you would market it to them.
Questions? Dylan B Opening Video for Wednesday