Market Segmentation

Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations.

What are the 4 types of market segmentation?

The four types of market segmentation are: Geographic segmentation, Demographic segmentation, Psychographic segmentation and Behavioral segmentation.

What are the methods of market research?

While there are many ways to perform market research, most businesses use one or more of five basic methods: surveys, focus groups, personal interviews, observation, and field trials. The type of data you need and how much money you’re willing to spend will determine which techniques you choose for your business.

How does market research analyze demand?

Market research focuses your marketing strategy on potential customers that want your product. Small and local businesses may find researching their market easier than large, nationwide businesses because their customer base is smaller. Timely information reduces business risks and helps spot sales opportunities.

What purpose does market segmentation serve for marketers?

In simple terms, market segmentation is the process of separating potential customers into different groups. These groups are usually based on different characteristics of consumers. See the full article for more details.