Segmentation as a market research tool

October 30, 2019
October 30, 2019 admin

Segmentation as a market research tool

It’s almost impossible to simultaneously have customers in high demand of your goods/services and to manage the stress of maneuvering a vast customer base to reach specific customers who are in need of what you sell but it is in reality very possible to keep track of your target market and also save yourself the stress of dealing with a wide and growing customer audience through a strategy called Segmentation.

Segmentation is an effective marketing tool that breaks down the large market into smaller sections (sub groups) which helps you explore, collate and analyze information, characteristics and reports that defines the behaviors and interest of potential customers.

This tool helps you gain unique insights into what your targeted customers want and guides you on how to satisfy them better than your competition.

Types of Segmentation

Demographic/Geographic Segmentation:  This is one of the simplest and extensive style of market segmentation which operates best as a foundation for other types of segmentation. Using attributes such as age, residence, gender, family, income, occupation, religion, nationality, etc. demographic/geographic segmentation defines customer population.

Behavioral Segmentation: Behavioral segmentation defines customer population based on actions, practices, decision-making pattern. Based on the behavior of customers/ customer group, product is marketed.

For example; customers’ buying attitude are largely dependent on seasons. Festive seasons, harmattan, summer and other seasons not mentioned here influences the behavioral interest of customers such that we have sweaters, flask, socks, gloves being of high demand in cold seasons, likewise clothing and food items in festive seasons.

Psycho- behavioral Segmentation: People have varying product preference and might respond to marketing versatile offering; so life-style, activities, interests, opinions are variables that are used to define customer profile in Psycho- behavioral Segmentation.

For example; people with the high class standard of living would be in high demand of costly products with preference to their activities and interests.

Segmentation allows entrepreneurs to focus resources and efforts, to attune your advertisement, properly align and channel your goods and services to the customers who are in demand for it. Segmentation is the strategy to adopt to gain a firm hold of your potential customers in the broad competitive business market. So find out what type of segmentation works for your business and engage it.

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