Customer Segmentation

Customer Segmentation

Everyone or Anybody might be potential customers for your product or service. However, you probably don’t have the time or money to market to Everyone and Anybody. Hence the need to segment the market.

 A market segment is just a group of people with common characteristics that set them apart as a group.

Women with household incomes of $75,000 or more who live in up market suburbs

The purpose for segmenting a market is to allow your marketing/sales program to focus on the subset of prospects that are most likely to purchase your offering.

 If done properly this will help to ensure the highest return for your marketing/sales expenditure.

 When a business has decided on the segments it wishes to concentrate its marketing activity on, we say it has decided on its target markets.

 The more you know about a target market, the more precisely you can develop your marketing strategy to attract it to your product.

Have you adequately segmented your customers?

Take the self assessment below and find out.