The purpose of market segmentation is to allow your marketing plan to focus on the sub segments that are “most likely” to purchase your goods or services, thus delivering the highest return on your investment. It divides up a market to identify trends in it; the analysis is used to create a profile of the target market/s:
- industry segments and sub segments are identified using SIC codes, company size, employment codes, etc.
- which segments to address and how best to address them may be determined and could include recommendations on optimum offering for each area
- using advanced statistical analysis, profiles of customer clusters may be developed by grouping together individuals with similar needs/differences by geographical region, country or industry type.
An overview Continue reading Market Segmentation