Level 3 Digital Marketing Bootcamp – Exeter College Module 1
Market segmentation is a marketing technique that divides a market into groups or segments. Consumers characteristics, needs, or behaviors come into consideration. The goal is to identify and target specific customer groups that are more likely to respond positively to a company’s products or services. By tailoring marketing efforts and product offerings to these segments, businesses can enhance their marketing effectiveness and maximise their return on investment.
Here are the key components and aspects of market segmentation:
Geographic Segmentation: This divides the market based on geographical criteria such as region, city size, climate, and population density. Geographic segmentation is particularly important for businesses with products or services that are location-specific, like a beachwear company focusing on coastal regions.
Demographic Segmentation: This involves dividing the market based on demographic factors such as age, gender, income, education, occupation, marital status, and household size. For example, a company might target a specific age group (e.g., teenagers, adults, seniors) or income bracket (e.g., low-income, middle-income, high-income).
Psychographic Segmentation: Psychographic segmentation takes into account consumers’ values, interests, attitudes, and personality traits. It helps businesses understand the emotional and psychological factors that influence purchasing decisions. For instance, a brand may target environmentally conscious consumers or adventure seekers.
Lifestyle Segmentation: Lifestyle segmentation is based on consumer behavior, such as purchasing patterns, product usage, brand loyalty, and decision-making processes. This approach helps businesses identify customer groups that exhibit similar buying habits and tailor their marketing strategies accordingly.
