What is Market Segmentation, and what are best practices, tools and templates for teams and organizations?
Definition of Market Segementation
Market Segmentation is the process of dividing a market into specific customer segments or groups that are defined around a common yet distinguishable set of characteristics, and helps marketers isolate which target customers will be positively influenced by a potential marketing or promotional strategy.
Description of Market Segmentation
Market Segmentation is essential for developing an effective marketing plan because it distinguishes the different groups of customers that the company wants to attract. It enables marketers to be strategic with customer research, journey mapping, persona development, branding, and promotional efforts, among other activities, in order to increase brand awareness and loyalty from the target customer groups based on their unique needs and attributes. There are different types of segmentation based on certain core differences that differentiate customer groups. A brief overview of the most common types is provided below:
Psychographic: Psychographic segmentation is what is most frequently thought of in terms of segmentation, as it refers to common lifestyle and psychological characteristics such as interests and hobbies, motivations, emotions, beliefs, and attitudes. These qualities are often identified via qualitative research, including in-depth interviews and focus groups, which provide insight into the customer’s view of the world.
Demographic: Demographic segmentation is based on gender, age, education, occupation, and housing type.
Geographic: Geographic segmentation is based on customer differences across various types of regions. Branding efforts may vary by country, region, state, community, city etc.
Price: Income is a common segmentation strategy that allows companies to develop a suite of products and services aimed at different socioeconomic strata.
Other strategies include distribution, media, time, and occasion-based segmentation.
Tools & Templates
Market Segmentation tools and templates come in many forms. Quantitative segmentation tools aggregate and report out data using spreadsheets while qualitative segmentation is often presented along with customer Personas and used within presentations, reports, and other marketing documents.
upBOARD's Online Market Segmentation Tools & Templates
Unlike most traditional Market Segmentation techniques, upBOARD’s online Market Segmentation collaboration tools allow any team or organization to instantly begin working with our web templates and input forms. Our digital platform goes far beyond other software tools by including progress dashboards, data integration from existing documents or other SaaS software, elegant intuitive designs, and full access on any desktop or mobile device.
Learn more about upBOARD’s portfolio of other marketing best practice tools and templates, including:
7 Cs Compass Model, AIDA Marketing Model, BCG Matrix, Brand Identity Prism, Brand Pyramid, Closed Loop Customer Feedback, Content Marketing, Customer Experience Maturity Model, Customer Journey Mapping, Environmental Scanning, Ethnographic Research, Four Ps, Market Sizing, Net Promoter Score, Personas, Positioning, Segmentation, STP Model, Trend Mapping, and Value Propositions.