How should we segment?

So, if segmentation is so good for business, how do we start?

As with most marketing concepts we have seen so far, there is a 2-step process that we can follow for best practice and optimal results that can be implemented:

1. Identify bases for segmentation – defining the variables that will be used for segmentation that are relevant to your specific business. These variables could be demographic, behavioural, psychographic, and geographic. We will explore each one in more detail in the next section.

2. Determine important characteristics for each market segment – identifying the common characteristics will form the basis onto which your segments will be built on. This is the stage where marketing research is used as a tool to gather and analyse the relevant information.