Market segmentation
Introduction | Useful tips
Market segmentation provides a quantitative breakdown of the market, classifying consumers according to a set of factors, which are likely to include
- Demographic factors (age, family size, stage in life, education, occupation)
- Geographic factors (state, region, country)
- Behavioural factors (product knowledge, usage, buying habits, decision making patterns, responses)
- Psychographic factors (lifestyle, attitude, ethnicity, culture, values, personality, approach to risk)
The overall intent is to
- Identify groups of similar potential customers
- Prioritise the groups to address
- Help understand behaviour patterns
- Respond with appropriate strategies that satisfy the different preferences of each chosen segment
SAGA segmentation of UK grandparents, where a complete description of each category is available from this SAGA press release.
Overview | Market segmentation (2) | Personas (3) | Example set of personas (6)