The next section of this module walks through several common approaches to market segmentation. Some approaches will probably seem familiar, or even obvious—like segmenting by gender or income level—but others, like “psychographic” segmentation, may not. These methods are common because they provide useful guidance to marketers about how to identify and reach prospective buyers.
It’s important to remember that there may be more than one “right” way to segment a market. Certainly, there are more effective and less-effective approaches for different products or services. Sometimes a segmentation strategy is effective for a while, but then something shifts, and a new approach is needed. In that way, segmentation is like a compass for marketers: when your position or direction changes, you revisit market segmentation to fine-tune where you’re heading and how to get there. Different segmentation approaches applied individually or together help refine a marketer’s understanding of the target market.
- Reading: Segmentation Criteria and Approaches