What Is Segmenting in Consumer Markets?
Significance A company that correctly identifies various consumer segments has a better chance of developing unique marketing strategies and advertising campaigns to reach these consumers. Identification Segmenting a consumer market entails studying key demographic groups and determining ones that fit the profile of a company’s typical consumer. Demographics can include age, median household income, household size, the profession of a household head and even gender. Function A company will often pinpoint key customer segments by developing profiles out of their heavy or most frequent customers. For example, middle-aged men with a household income more than $75,000 may be a key consumer segment for a financial company. Advertising can then target the publications they read or TV programs they watch. Considerations A company should consider several key consumer segments. Moreover, as a company introduces more products, new consumer segments can emerge as loyal customers. For example, a c
