Market Segmentation

Edward Hass, Vice President of Advanced Research Methods, notes, "We all understand that consumers are not all alike. This provides a challenge for the development and marketing of profitable products and services. Not every offering will be right for every customer, nor will every customer be equally responsive to your efforts to bring your offering to their awareness. Success in these regards requires a targeted approach to ensure bottom-line efficient use of product development and promotional resources."

What is Market Segmentation?

Market segmentation involves partitioning the population into subgroups, based on different variables: geographic, demographic, psychographic or behavioral. Segmentation helps answer key marketing questions. On what type of customers should you focus your efforts? How broad or narrow should your focus be? In which competitive space is it most profitable for you to operate?

There are major benefits of market segmentation analysis:

  • Designing responsive products to meet the needs of the marketplace
  • Developing effective and cost-efficient promotional tactics and campaigns
  • Gauging your company's market position - how your company is perceived by its customers and potential customers relative to the competition
  • Fine-tuning current marketing strategies (Determining whether to win new customers or work to maintain loyalty in existing customers, for example)

With Io Data's help, discover the resources needed to establish, grow, and maintain a loyal customer base.