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Market Segmentation
Main takeaways
Organizes existing or potential customers in categories based on common traits to identify a target market.
Helps to prioritize and focus resources on the most promising customer segments.
Step-by-step
Step-by-step
Step-by-step
1. Define your market.
2. Identify what types of consumers make up your market.
3. Split the user types based on their commonalities.
I. Geographic segmentation
Based on location such as nations, states, regions, countries, cities, neighbourhoods.
II. Demographic segmentation
Based on things such as age, gender, occupation and education level.
III. Behavioural segmentation
Based on their knowledge of, attitude towards, usage rate, response and loyalty status to the product.
IV. Psychographic segmentation
Based on costumer’s lifestyles by studying the activities, interests, and opinions of consumers.
4. Based on the user segmentation identify if you need to create different strategies or different products to cater to each segment of the market. Do not feel discouraged if your innovation is only relevant to some markets, target your efforts on these!
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