About Segment Profiles
A segment profile is a detailed description of the market segment across a range of factors and measures. It is an important step in the overall segmentation, targeting and positioning (STP) process as is provides the organization with a good comparison between each of the market segment.
In the overall STP process (which stands the segmentation, targeting and positioning), a segment profile is developed after various market segments they have been constructed by the firm and have been evaluated against a set of criteria. (Please refer to the section on the STP model for more information regarding the overall process.)
The firm would use any available data and market research studies to build a clear understanding of each segment. In other words, a segment profile is a fairly detailed description of each segment, as a group of consumers. In particular, the firm needs to know: the size of the segment, whether it is growing, what are their core needs what they currently buy, what brands they buy, how loyal are they, and so on.
This information and allows the firm to identify how well they could meet their needs, which is an important part of selecting a target market. It also lets them know the overall attractiveness of the segment. This information is then used in the STP process of to help select target markets and then later develop a positioning strategy and a suitable marketing mix. This important role of a segment profile is reinforced by Botha et al:
- “Segment profiles enable marketers to develop products that will satisfy customers, design communication messages that will appeal to the market segment, and develop an effective distribution plan that will assist in distributing the products and services" (Botha, Bothma, & Brink, 2004).
Therefore, it is important to remember that the information contained in a segment profile is critical to effectively evaluating each market segment in order to select suitable target market/s and, finally, develop a positioning strategy and a supporting marketing mix.
Segment profiles are also sometimes presented as a brand persona.
Also see the step-by-step guide to building segment profiles on Excel.