How to do a market segmentation

Segmenting the market according to the variables that the company considers appropriate is an essential step to able to know our clientele and, consequently, develop a successful marketing strategy. However, segmenting the market correctly is not that easy. And there are some basic guidelines that we have to follow if we want to do it correctly. In this article. We will teach you these guidelines for market segmentation.

Table of Contents

Steps to follow:

Step: 1

The first step would be to segment the potential market under general objective criteria since this criterion allows us to know the demographic and socioeconomic characteristics of our clients or potential clients, and it is very easy to do. We can do it by sex, age, income, place of residence, etc. It is easy data to obtain and classify.

Step: 2

Once we have distributed the previous data, we will have to choose our target market, that is, those to whom we wish to offer our product and who can buy it. For example, if we want to sell a high-level women’s cosmetics product. Our target market will be in those segments of middle-aged women, with an upper-middle income.

Step: 3

Subsequently, we will have to know the consumption profile of our target market, that is, how that sector usually relates to the market. As well as the behavior patterns when it comes to buying a product like ours. Research should be done around variables such as:

Lifestyle
Tastes and preferences
Opinions
Consumption habits (under what circumstances do they consume more or less)

The investigation must be carried out, as is logical, within the segment selected in the previous section.

Step: 4

Once the consumption profile of our potential clients is known and investigated. We will have to design a marketing strategy that adjusts to the needs of the company and our market. To efficiently connect production with consumption.

To do this, we must mainly take into account the marketing mix, that is, the correct arrangement of the variables of price, production, promotion, and distribution.

Step: 5

Finally, if all our decisions have been correct, our product can be sold in the market segment that we have decided on in an ideal way. It is time to look for new markets in which to expand our sales.

Tags: How to do a market segmentation, how to do segmentation, market segmentation