What is market segmentation?
Market segmentation is a process that means that the entire market is divided into smaller parts (segments) in order to be able to more clearly distinguish their actual target group.
One segment can be young people who live in large cities, have a high level of education, like interior design and home improvement. Another segment may be older pensioners who live in rural areas and have fishing and planting in the garden as interests.
There are different ways to segment the market, but one of the most used is Mosaic ™ Lifestyles. Mosaic ™ has been used for over 20 years to – group and describe consumers in the market based on hundreds of frequently updated data points. The more variables and data points used, the more descriptive the segmentation becomes.
But, why is market segmentation important?
In order to end up top-of-mind with customers, marketing needs to be not only consistent but also relevant. By segmenting their customers and potential customers, you get an idea of what similarities and differences they have. This means that more personal marketing can then be targeted at the right target group. In this way, companies can both retain and capture new customers!
Strategic Audience Map (SAM) helps you with this. We combine market segmentation with your existing customer data and site traffic so that you can become increasingly efficient and accurate in your strategic choices.
Book a meeting HERE and we’ll tell you more!
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