Examples of a Market Segmentation Profile
Market segmentation involves grouping together individuals with similar characteristics.
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- 1 [Market Segmentation] | Examples of Market Segmentation
- 2 [Demographic Segmentation] | Examples of Demographic Segmentation
- 3 [Define Market Segmentation] | Define Market Segmentation Targeting
- 4 [Geographic Segmentation] | Examples of Geographic Segmentation
Small businesses can gain a competitive edge by focusing their marketing efforts on specific segments of the market instead of trying to appeal to everyone. Market segmentation involves using market research to identify the business’s ideal target market and customer. Segmentation can be used to develop several different types of customer profiles.
Customers can be segmented based on their geographic location. For a small business such as a pizza shop, for example, its target market may be all residents within a five-mile radius of the shop’s location. The shop owner can target this market by placing door hangers containing a special offer on all homes and businesses within this radius or by mailing coupons to all homes within specific zip codes.
Demographics are personal characteristics used to categorize consumers. Demographics include characteristics such as age, gender, income level and marital status. Through market research, the company may identify its ideal customer as a married, college-educated female aged 30 to 35 with an annual income level of $35,000 to $45,000. This information helps the business owner develop a marketing strategy that appeals to individuals with this demographic profile. For example, an owner of a women’s clothing store might attempt to reach this market by developing an ad campaign to promote a new line of business attire.
Psychographic profiling attempts to segment the market based on traits such as personality and lifestyle. Marketers may use these traits when developing a targeted advertising or promotional campaign. A purveyor of expensive jewelry items can use psychographic profiling to market to individuals who have purchased similar items in the past or other luxury products like expensive cars or clothing. For instance, they can create an ad for placement in a magazine that appeals to an upscale market.
Behavioral profiling analyzes characteristics such as desired product benefits, price sensitivity and brand loyalty. Behavioral profiling is useful for determining buying patterns and what changes may affect these patterns. For instance, if a restaurateur determines that customer loyalty is high, it may mean customers are more willing to tolerate menu price increases. Behavioral profiling can also tell a company how many of their customers are first-time buyers as opposed to repeat customers. If repeat purchases are low, the company may need to focus on improving quality or building brand loyalty. A bakery owner can improve quality be selecting better ingredients and encourage repeat visits by attaching coupons to customer receipts.