Segmentation

Segmentation research divides the market into groups, to find priority target areas. The idea is if you design your business to appeal to one section of the market – you’ll be more effective – able to better appeal than businesses targeting everyone.

Segmentation enables you to identify where the highest potential areas in the market are and design your business accordingly to target them. Targeting gives you a higher chance of generating more business, per dollar of spend.

Segmentation research varies markedly depending on whether its consumer or business to business. In business, spend data is far more important. With consumers, consumer needs and psychology are also important, as are demographics.