Research on Market Segmentation for Premium Dog Food

Research on Market Segmentation for Premium Dog Food Name: Institutional affiliation: Course: Date: Introduction Customer segmentation refers to the process of dividing or tailoring products and services in a way that suits consumers' common characteristics such as behavior or demographics. Through customer segmentation marketers or advertisers can target specific customers which thus increases the possibility of targeted individuals making purchases. Several segmentation tools exist including psychographic analysis, demographic segmentation, and perceptual tools. Often an inadequate or inappropriate use of customer segmentation tools significantly impacts a business's profitability. Customer Segmentation Tools Demographic Segmentation According to Meghana (2016), demographic segmentation is the statistical component of marketing that helps identify certain population segments through consideration of certain characteristics such as ethnicity, education level income, age, or geographic location. These research points are key in developing appropriate marketing strategies, especially for groups that share characteristics. In the case of premium dog food, demographic segmentation classifies pet owners by income, age, and residence (urban vs rural). The advantages of this tool include easy to use and apply considering the readily available government data. Psychographic Analysis Psychographic analysis refers to the categorization of customers based on interests, activities, personality, lifestyle, and social classes. Psychographic analysis is more purposely in the sense that it uncovers deeper insights into consumer motivations and consumer preferences (Nica, Gajanova, & Kicova, 2019). For example, this tool identifies segments based on aspects such as attachment levels starting from the strongly attached to the least attached. This tool has advantages that include detailed customer understanding, un...