What is a segmentation strategy?

A market segmentation strategy organizes your customer or business base along demographic, geographic, behavioral, or psychographic lines—or a combination of them. Market segmentation is an organizational strategy used to break down a target market audience into smaller, more manageable groups.

What does segmentation mean in marketing?

At its core, market segmentation is the practice of dividing your target market into approachable groups. Market segmentation creates subsets of a market based on demographics, needs, priorities, common interests, and other psychographic or behavioral criteria used to better understand the target audience.

What is segmentation with example?

Common characteristics of a market segment include interests, lifestyle, age, gender, etc. Common examples of market segmentation include geographic, demographic, psychographic, and behavioral.

What are the five basic segmentation strategies?

Five ways to segment markets include demographic, psychographic, behavioral, geographic, and firmographic segmentation.

What are the types of segmentation strategies?

The 4 basic types of market segmentation are:

  • Demographic.
  • Psychographic.
  • Geographic.
  • Behavioral.

What does segment mean in business?

Segmentation is the process of dividing a company’s target market into groups of potential customers with similar needs and behaviours. Doing so helps the company sell to each customer group using distinct strategies tailored to their needs.

What is the purpose of segmentation?

Segmentation acknowledges that different people and groups have different needs. Successful marketers use segmentation to figure out which groups (or segments) within the market are the best fit for the products they offer. These groups constitute their target market.

What is McDonald’s market segmentation?

McDonald’s is one of the most popular fast-food restaurants companies in the world. The way McDonald’s built its marketing segmentation remains mysterious….2.3 Demographic Approach.

Type of segmentation Segmentation criteria McDonald’s target segment
Demographic Age All age
Gender Male/Female
Income Low and Middle

What are the 5 segments?

There are many ways to segment markets to find the right target audience. Five ways to segment markets include demographic, psychographic, behavioral, geographic, and firmographic segmentation.

How do you develop a segmentation strategy?

Steps in Market Segmentation

  1. Identify the target market. The first and foremost step is to identify the target market.
  2. Identify expectations of Target Audience.
  3. Create Subgroups.
  4. Review the needs of the target audience.
  5. Name your market Segment.
  6. Marketing Strategies.
  7. Review the behavior.
  8. Size of the Target Market.