Market segmentation is the process of splitting an overall market into two or more groups of related consumers, where each of these related consumer groups (known as market segments if correctly defined) are somewhat similar to each other in terms of their buying characteristics and/or … Read more...
Sometimes the terms of primary and secondary target markets are confused and misunderstood, and a secondary target market is inadvertently referred to as a “second” target market, however this is not correct.
Both primary and secondary … Read more...
Hybrid segmentation is an approach using a combination of different segmentation bases.
As you most likely already know from your study of marketing, there are multiple approaches to segmentation. And while different marketing textbooks will provide a slightly differing choice of segmentation bases, they will usually include:
Benefit segmentation is an approach built around the base need of consumers. In other words, what are they primarily looking for when they purchase the product?
As implied by the term “benefits sought”, brands and products are positioned around a specific benefit that a consumer is seeking.
A common … Read more...
Behavioral segmentation is looking at how consumers behave as consumers in the marketplace. It revolves around their actions, behavior, and attitudes and opinions towards products and brands.
It does not refer to their lifestyle behavior, which is psychographic segmentation, but only to their behavior as a buyer and consumer in … Read more...
Psychographic segmentation is looking at consumer’s lifestyles, activities, and interests. It is a very effective way of understanding the consumer as a “person”.
But how effective is this segmentation approach for marketing purposes? This article explores the advantages and limitations of using psychographic segmentation bases when identifying target markets.
Covered … Read more...
Demographic segmentation is a very common approach to constructing market segments. However, it has a number of limitations on how effective it can be for marketing purposes.
Therefore, given the choice of potential segmentation bases, should you use demographic segmentation? While in most cases you should probably not use demographics … Read more...
Given the choice of potential segmentation bases, should you use geographic segmentation?
This article explores the advantages and limitations of geographic segmentation. And although it is a segmentation approach which is somewhat dated (more likely to be used in the past) it still has relevant use, providing the geography changes … Read more...
As implied by the name, benefit segmentation is splitting up the market based upon the key benefits and needs sought by purchasing consumers. As a result, benefit segmentation is a very consumer-centric approach as it identifies the core product needs of the consumers.
Note for students: … Read more...
This approach to segmentation is dividing the market into segments based upon demographic variables, such as age, gender, life stage, family size, income, and so on.
Demographics are observable characteristics of the population, often collected on a regular basis for a government census.
