Market segmentation in simple terms is a process of defining or dividing a broad consumer or business market into clear and distinct sub-groups (segments) based on uniqueness, common attributes or shared characteristics.
We do segmentation primarily for the following reasons:
- Defining your target market, clearly and precise.
- To recommend the best communication channel for the eventual campaign; espoused by understanding the media consumption appetite of the target niche.
- Gauge revenue potential, return of investment. See if the segment is showing stability over time or often showing frequent changes in patterns, characteristics to help you decide if your initiatives need calibration or different way to measure success.
- Highlight unique needs of the segment; the commonalities and differences are guide posts to best recommend the flight plan.
Segmentation is important, it helps organization choose and define their campaign scope.
Contributor:
Allan Catli – is a senior consultant of Muovere Veloce, Inc. and at present is working for Tao Community of Companies as Head of Marketing for Techbox International. He’s also the former marketing services head of Allphones, Philippines and previously worked for Globe Telecom under Small and Medium Business segment as Group Product Marketing Manager. Allan has a bachelor’s degree in mass communication from Adamson University, Manila.