How does segmentation work?
The segmentation is the process of dividing a company’s target market into groups of potential customers with similar needs and behaviors. This allows the company to sell to each group of customers using distinct strategies tailored to their needs.
The first use of a segmentation is to allow you to focus on the customers who are most valuable to your business. First seen as a communication tool, it must also be dispersed throughout the organization so that everyone places the customer at the heart of their strategies.
The principle of segmentation is to divide a market or an audience into distinct subsets (segments). A market segment groups individuals who share common characteristics.
What is segmentation? The principle of segmentation is to divide a market or an audience into distinct subsets (segments). A market segment groups individuals who share common characteristics. Segmentation therefore makes it possible to clarify the composition of a market.
Segmentation criteria and examples. Defining segmentation involves choosing identifiable criteria to categorize the market. The segmented groups thus formed are homogeneous and have common points.
Segmentation allows the company to better meet the needs of consumers and therefore to have a marketing approach. It can also make it possible to fight effectively against competition and, depending on the strategy chosen, to avoid taking risks if a market sees its turnover reduced.