As implied by the name, benefit segmentation is splitting up the market based upon the key benefits and needs sought by purchasing consumers. As a result, benefit segmentation is a very consumer-centric approach as it identifies the core product needs of the consumers.
Note for students: … Read more...
This approach to segmentation is dividing the market into segments based upon demographic variables, such as age, gender, life stage, family size, income, and so on.
Demographics are observable characteristics of the population, often collected on a regular basis for a government census.
Psychographic segmentation , also known as lifestyle segmentation, is one of the four main segmentation bases used in segmenting consumer markets, with the others being geographic, demographic, behavioral (which is sometimes also split down into benefits segmentation).
As you may have guessed, the word “psychographic” the … Read more...
Marketing students often confuse the difference between behavioral and psychographic segmentation. The reason is the word “behavioral” – as it suggests how consumers behave, so how can that be different to their psychographic equal lifestyle behavior?.
Good question, so let’s explore the differences in this article.
Depending upon the marketing textbook that you are reviewing, the process of moving from market segmentation to positioning is sometimes referred to as the STP process, or in some other textbooks, the STDP process.
These are identical processes, with the exception of the STDP approach simply be … Read more...
Please note: This article explains how to build segment profiles using Excel – but a free segmentation tree and segment profiling Excel template is available for free download on this site along with simple video instructions on how to use.
Segment profiles are rich and … Read more...
If you have access to market research survey data or a customer database, then building segment profiles are very quick and simple to do using a Excel spreadsheet. Here is a free Excel template … Read more...
There are multiple approaches to creating market segments, from simple “guesswork” to more scientific data-driven techniques. On this website you will find an article that addresses the two main market segmentation tools – namely segmentation trees and cluster analysis. But the purpose of this … Read more...
There are multiple ways to segment a market, but one of the more precise and statistically valid approaches is to use a technique called cluster analysis. Cluster analysis is a tool that is used in lots of disciplines – not just marketing – basically anywhere there is … Read more...
[email protected] originally defined the term BYOP as “identifying new segments by their digital engagement.”
According to Wharton, this persona is based on:
Using the Wharton definition, ‘digital capability’ is a consumers’ ability to maximise their usage of the latest technologies such as mobile apps, wearables, social … Read more...