Marketing Lesson 3

is the research that determines how your organization divides its customers or cohort into smaller groups based on characteristics such as, age, income, personality traits or behavior. These segments can later be used to optimize products and advertising to different customers

While typically a subset of demographics, geographic segmentation is typically the easiest. Geographic segmentation creates different target customer groups based on geographical boundaries

one of the simplest and most commonly used forms of segmentation because the products and services we buy, how we use those products, and how much we are willing to spend on them is most often based on demographic factors

similar to demographic segmentation. The difference is that demographics look at individuals while firmographics look at organizations. would take into consideration things like company size, number of employees and would illustrate how addressing a small business would differ from addressing an enterprise corporation

divides markets by behaviors and decision-making patterns such as purchase, consumption, lifestyle, and usage. For instance, younger buyers may tend to purchase body wash, while older consumer groups may lean towards soap bars. Segmenting markets based off purchase behaviors enables marketers to develop a more targeted approach.

takes into account the psychological aspects of consumer behavior by dividing markets according to lifestyle personality traits values opinions and interests of consumers Large markets like the fitness market use psychographic segmentation when they sort their customers into categories of people who care about healthy living and exercise

means that your segmentation variables are directly related to purchasing a product. You should be able to calculate or estimate how much you segment will spend on your product.

understanding your customers and being able to reach them are two different things Your segment's characteristics and behavior should help you identify the best way to meet them.

The market segment must have the ability to purchase. Make sure, an identified segment is not just interested in you, but can be expected to purchase form you.

The market segment must produce the differential response when exposed to the market offering. This means that each of your segments must be different and unique from each other.