Examples for Types of Market Segmentation
When it comes to market strategy and email campaigns, organization is the key to success. Market segmentation breaks down your target market into smaller, more manageable groups. Market segmentation enables companies to better serve customers by identifying and marketing different products and services to different consumer sets. Listed below are several examples of market segmentation that will help CMOs and marketing directors create more personalized customer experiences.
Examples of Market Segmentation
Demographic sets are the most common form of segmentation based on customer traits.
The most common demographic sets are:
- Marital Status
There are many common segments within the clothing industry, for example—including Men and women, fashionable, thrifty, conservative, casual, and business.
Where your customers live dictates the products and services that benefit them the most.
Common geographic segmentation includes:
Also known as psychographics, lifestyle targeting is geared toward understanding hobbies and interests.
For example, musician customers can be segmented into commercial, retail, drums, live sound, guitars, professional, beginner, collector, live sound, or recording.
Big Data has been a key determining factor in identifying behavioral segmentation. Customer records show buying patterns over time that could prompt promotions and sales based on spending habits of particular brands. This is a unique, personalized customer experience tailored directly to the consumer.
Behavioral traits include:
- Patterns of use
- Price sensitivity
- Brand loyalty
- Benefits sought
Cost-effectiveness is a key determinant of behavioral statistics. High-income products and low-income products can be broken down into further marketing segments.
For example, restaurant market segmentation can be broken up into regulars, business lunch, brunch, fast food, upscale dining, and catering.
Benefit segmentation seeks to identify the specific benefits a customer is seeking from a product.
Benefit segmentation includes:
For example, deodorant segmentation can be broken up into needs for medical, fragrance, sport, organic, feminine, or masculine.
Real-Time Market Segmentation Solutions
For more information on how market segmentation can benefit your company through one-on-one engagement, contact Selligent and see how our real-time data solutions drive ROI and promote customer retention.