Vast technological changes brought on by digitalization are disrupting conventional business practices and social norms, states the economic forum founder, Professor Klaus Schwab, in his essay published by the Council on Foreign Affairs.
The characteristics used in segmenting relate to your segmentation strategy or approach. Within your chosen strategy, certain variables contribute to the development of specific segments of customers with similar qualities. Demographics Demographics segmentation is a common strategy where you identify market segments based on shared demographic or personality qualities.
Specific characteristics often used in demographics segmentation include age, gender, race, marital status, income, education and occupation.
Lifestyles and Psychographics Lifestyles and psychographics segmentation is an approach that places emphasis on the shared activities, interests and behaviors of particular customers. Along with activities, lifestyle segmentation is driven by characteristics such as shared interests, opinions, attitudes and values of customers.
A fishing bait and tackle shop would likely target customers based on their similar interests and attitudes toward fishing, for instance.
This approach makes more sense given widespread demographic traits among fishing and outdoor enthusiasts. Geographics One of the simplest and most common segmentation strategies for small businesses is based on geography. If you have a broad customer base congregated in a local, regional, national or international location, it makes sense to invest in geographic marketing.
Size, population density and climate factors are traits of geographic segmentation, along with region or location. Targeting a rural market of 10, customers is much different than targeting an urban market ofcustomers, for instance. Behavioralistic With a behavioralistic segmentation strategy, you target customers based on their interest or experience with your company or products.
With this strategy, your market segments have shared familiarity with your products. Benefits sought, usage, loyalty, prospect or customer status are common characteristics.
Car companies often use benefits segmentation to target a broad market looking for different benefits, such as economy, performance, luxury or status. Targeting new prospects is also distinct from targeting brand-loyal customers.
References 2 University of Delaware: Market Segmentation About the Author Neil Kokemuller has been an active business, finance and education writer and content media website developer since He has been a college marketing professor since Kokemuller has additional professional experience in marketing, retail and small business.Given the current state of the economy, having a well-defined target market is more important than ever.
No one can afford to target everyone. Demographics segmentation is a common strategy where you identify market segments based on shared demographic or personality qualities.
Lifestyles and psychographics segmentation is an. Demographics, psychographics and personality Consumer Motivation (Chapter 8) Consumer Knowledge (Chapter 9) Consumer Beliefs, Feelings, Attitudes and Intentions (Chapter 10) Analyzing and Predicting Consumer Behavior Demographics is the size, structure, and distribution of a population.
Five Types of Customer Segmentation and Examples of Implementation. Customer segmentation is imperative when trying to send messages to a target market.
Exploring Psychographics vs Demographics in Market Research. one way is to act like a business psychologist and perform personality surveys. However effective this would be, there are better ways of doing it in today’s digital world. managers and employees to be somewhat confused and intimidated by discussions that include .
In its most basic form, communications happens when there is a dialogue between two people. Yet, how often do we see miscommunication instead of communication?