Segmentation, a must just!
Segmentation is the process of dividing a population in multiple groups based on some common denominator. It’s a very common practice for each of us and we use it each day by projecting our subjective way of thinking into a particular matter and most of the time it’s not a smart approach or a very productive one. This post is going to concentrate though on the rational, objective part.
Segmentation is about organizing, strategize items, products, markets or customers into meaningful subsets constructing improved insights and ability to adapt and target solutions.
The most common types of segmentation are:
-> Demographic segmentation sorts a market by demographic elements such as age, education, marital status, income, family size, race, gender, occupation, nationality, religion…
-> Behavioral segmentation divides markets by behaviors and decision-making patterns such as purchase, consumption, lifestyle, loyalty, usage… Example here could be young/old people preferences, regular/business people, regular/holiday markets…
-> Psychographic segmentation takes into account the psychological aspects of consumer behavior by dividing markets according to lifestyle, personality traits, social values and interests. It’s similar to behavioral but concentrates on the psychological aspect.
-> Geographical segmentation is self explanatory. Divides people based on their needs related to their geolocation.
Now once the market is segmented, one or more segments are selected for targeting, and products or services are positioned in a way that resonates with the selected target market.