Four Main Market Segmentation Methods

Market Segmentation
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Market Segmentation
A company needs to segment its market to develop the right products and marketing strategy. Market segmentation is the process of identifying the different markets a company can satisfy through its products. These markets can be grouped according to demographic, lifestyles, shared needs, or common interests. A company can minimize risk through market segmentation by developing products that will earn a market share in the target market. In addition, market segmentation allows a company to develop specific marketing strategies such as promotions and price strategies for particular markets. There are four main market segmentation methods.
Firstly, markets can be geographically segmented. This method groups consumers by region—for example, the East African Region Market. Geographical segmentation assumes people in that area have similar tastes and preferences. Therefore, companies will research the needs and wants of that particular re...