1.2.3 market segmentation

• market segmentation


  dividing customers within a market into smaller groups with common groups/wants
• market segments

  • location
  • income
  • lifestyle
  • age
  • other demographic factors (gender, race, religion)
• benefits

  • helps you to define and better understand your target audience
  • more effective promotions
• drawbacks

  • may be expensive for target marketing
  • may ignore potential audiences
• why segment a market?

  when trying to reach potential customers, targeting the right market is essential. if you aim too broadly, your message might reach a lot of people who aren’t interested. when your messages aren't optimized for your audience you end up wasting money.