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A target market is a specific group of people you have decided to target with your products or services. It could be a large market or a niche market.
Market segmentation can help you understand how your products or services appeal to individuals across several demographics within your target market.
Let’s look at each of these categories in more depth.
As its name implies, geographic segments can be used to target people living in a specific area. This could be as large as an entire continent, or as regionalized as a specific bus stop.
Geographic segmentation typically includes at least one or two of the following criteria:
Yes, we’ve been talking about demographics throughout this post, but demographic targeting is an important part of market segmentation. Since we already know what a demographic is, let’s look at the most used demographics:
Psychographic segmentation categorizes people by their personality, interests and other factors. This can be a powerful way of marketing the same product to people from seemingly radically different demographics and plays a crucial role in the target marketing of businesses like Lush.
Psychographic segmentation can focus on:
Behavioral segmentation refers to – yep, you guessed it – how people behave. However, this type of segmentation refers specifically to what potential customers expect from a product or service, and how their actual experiences influence their behavior.
Behavioral segmentation includes factors such as: