Different approaches to segmentation to more tightly target market.

The market segmentation is to help marketers and hence their
businesses to target a smaller segment of the market (compare to mass-
marketing). This will allow the marketing team to focus their efforts
to sell their products with a higher margin and better acceptability.
Segmentation help marketer to identify the important factors for the
customers in that segment so he/she can highlight the features in
their product that can address those factors/needs. The segmentation
can be approaches from different aspects of the customer
characteristics and buying behaviors:
1. Demographic factors: Age, Gender, Marriage Status, race, Income,
etc.
2. Phsycographic factors: Life Style, Interests, Attitudes, etc.
3. Geographic: Where customers live: Neighborhood, City, Province,
Country, etc.
4. Product Benefit: Perceived value of the product from customer’s
perspective.
Combining the above approaches to segmenting a market will provide
smaller areas to focus the marketing research on. The market research
based on segmentation will generate more accurate and valuable
information about the size, location of the market, acceptable price,
and the customers important needs for the product in that segment.
Once the target segment is identified and selected, brand positioning
and marketing mix (4Ps) can be designed properly to target the
customers more effectively. This effective communication will help the
customer to have a clear understanding of the product and help them to
choose our product over competitors.
By Reza Yazdi