What is Target Market Segmentation?
Target market segmentation is a process businesses use to identify potential customers for their products or services.
This process involves dividing a market into smaller groups based on shared characteristics. Companies use market segmentation to target specific groups of consumers who are more likely to purchase their products or services.
The first step is to develop a clear understanding of the market segments that exist.
Once the market segments have been identified, companies can then choose which segment(s) to target. This decision is based on a number of factors, including the needs of the business and the potential for growth in each segment.
After the target market has been selected, businesses can then develop content and marketing strategies that are tailored to that audience.
Four Types of Market Segmentation
There are four main types of market segmentation: demographic, geographic, psychographic, and behavioral.
Marketers use these four criteria to divide consumers into groups based on shared characteristics. By understanding the needs and wants of each group, businesses can more effectively target their marketing efforts and improve their chances of success.
Demographic segmentation: The who
Demographic segmentation divides consumers based on factors like age, gender, income, occupation, and education level. This type of segmentation can be used to target specific groups of people who are more likely to be interested in a company’s products or services. For example, a luxury car manufacturer might use demographic segmentation to target its advertising toward high-income earners.
Geographic segmentation: The where
Geographic segmentation divides consumers based on location, such as country, region, city, or even neighborhood. This type of segmentation can be helpful for a business that sells products or services that are specific to a certain area. For example, a clothing company might use geographic segmentation to target its content strategy to consumers in warmer climates vs. colder ones.
Psychographic segmentation: The why
Psychographic segmentation divides consumers based on their lifestyle, values, and personality traits. This type of segmentation can be us