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7 Types of Market Segmentation

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❶For example, which age group and gender in demographics? We use cookies to improve your experience on this website.

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Why Customer Segmentation Is Important?
Five Types of Customer Segmentation and Examples of Implementation
2. By Industry

Note that depending on the number of suggestions we receive, this can take anywhere from a few hours to a few days. Thank you for helping to improve wiseGEEK! View slideshow of images above. Watch the Did-You-Know slideshow. Mary McMahon Edited By: Kristen Osborne Last Modified Date: This Day in History. The Star Spangled Banner poem was written. You might also Like. What is Audience Segmentation? What is Customer Marketing? What is a Profitable Customer? How do I Maintain Customer Loyalty? Discuss this Article comfyshoes Post 3 Sneaker41 - I noticed that more luxury car manufacturers are offering lower priced car models to attract more customers.

Bhutan - Those are good points. Customer segmentation strategies include marketing to customers in a different area of the country. Please enter the code: Login username password forgot password? A broad approach makes it much more difficult to convert, and there are plenty of fantastic niches out there! This is similar to defining a segment by products, for example defining the agriculture industry it can include everything from massive food producers to boutique family farms.

You could narrow this further by segmenting by products like dairy, meat, organics, and so on. The more specific you are, the better position you are in to define your market to begin with — and keep track of developments in the industry. Demographics are a great way to differentiate between your customer base. You can segment markets by many different characteristics, such as age, income, gender, race and so on. Building on this you can look specifically at the actual ages of your consumers, or break it down into the life cycle stages of a product, or the heritage of competitors in your industry.

When you have your customers grouped by demographics, you can target your strategies to reach them specifically, as people from certain demographic groups often react the same way to marketing.

Segmenting your markets based on where they are located is another great tool. It all depends on the services you offer, because based on your business there will be a logical segment for you to target. A landscape gardener needs to focus on their local market, but a large internet business may have a global base of customers and a local approach may not be optimal for them. Different regions also have different product needs, for example rainy parts of the country having a higher need for raincoats and umbrellas, and a lower desire for solar panels and outdoor pools.

All of this must be considered and built into your business plan. Your customer base can be further defined by classifying your customers by their profession, or specific segments within a certain profession. For healthcare workers you could break the group down further into doctors, nurses, or even hospital administrators. This allows you to focus your value proposition and win more business! This segment aligns to demographics, but reflects that people and families have different product and service needs throughout their life.

It also captures the needs of different types of households, like single parents, married with children or seniors. This type of segmentation is also called psychographics, and is measured using information captured on the activities, interests and opinions of your target customers.

Using this information you can build a picture of how people enjoy their leisure time, and what they are more likely to be responsive to. By defining the activities and interests of your target market, you can develop products and services that are uniquely tailored to their needs.

Though it may seem trivial because it is so targeted, there are hobbyists that love everything from grooming pets to look like other animals to appearing in the background of live newscasts. Despite the very niche appeal, if you can identify and connect with these customers they can become very brand loyal, and long term customers.

Market segmentation is a sound marketing practice, because it allows you to target your sights on specific areas of the market that are the most lucrative for your business. This process helps give you a base for creating effective advertising campaigns and designing products that are exactly what your customers are after.

In addition you even get feedback and insight that can help you develop new products! The goal is effective market positioning, that aligns with what your customers are after while being different from the competition. You can learn more about mastering product positioning in this course. November 20, at November 21, at 1: November 21, at 8: How Many People Use Twitter November 22, at 1: November 24, at 5: November 26, at 8: November 27, at 4: November 27, at 7: November 29, at 7: December 29, at January 4, at 6: January 9, at January 11, at January 11, at 2: January 14, at January 19, at 8: January 22, at Klinik gigi surabaya says: February 1, at 4: February 10, at 2: February 26, at March 5, at 2: March 5, at 8: March 7, at 9: March 20, at 4: Social Media Agencies in India says: March 28, at 5: April 4, at 4: April 8, at 5: May 4, at 5: What is Marketing Segmentation?

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Bases of Market Segmentation

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Customer segmentation is majorly of following types: Demographic Segmentation. Demographic segmentation is used to divide customers into groups based on their age, gender, income level, religion or ethnicity. Geographic Segmentation. Geographic segmentation is uses factors like nations, states, regions, cities, postal/zip codes to .

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Customer segmentation refers to the division of the customer base into specific types according to purchasing behavior patterns. Understanding the various types of customers that you may encounter while attempting to sell products or services is an important part of the marketing process.

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Five Types of Customer Segmentation and Examples of Implementation Customer segmentation is imperative when trying to send messages to a target market. Segmenting consumers enables marketing teams to stretch budgets and make the most of marketing dollars by reaching the most ideal visitors who are likely to become leads, without . There are 4 different types of market segmentation and all of them vary in their implementation in the real world. Let us discuss each of them in detail. Types of Market Segmentation 1) Demographic segmentation. Demographic segmentation is one of the simplest and most widest type of market segmentation used. Most companies use it to .

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Customer segmentation, also known as market segmentation, is the practice of dividing consumers into segments that can be focused on. Data, for example, a clients’ socioeconomics, topography, psychographic and behavioural preferences are considered while deciding customer segmentation. Customer segmentation can help businesses target their messaging to generate the highest return on investment. Abhi Yadav is the co-founder and CEO of Zylotech, an artificial intelligence platform for customer marketing.