A business organization has scarce resources. And when they market their products or services, they cannot target random people most of whom may not be interested in their offerings.

1. A Step-by-step Guide
to Market Segmentation

2. Why Segment?
A business organization has scarce
resources. And when they market their
products or services, they cannot target
random people most of whom may not be
interested in their offerings. That is why, it is
imperative for businesses to segment their
market based on customers’ needs and
design and execute the marketing plan
accordingly.

3. Once your objectives from the segmentation
process are clear, you should identify
different segments from the population
based on geography, demographics,
employment, income and many other factors.
You can also do a behavioural segmentation
if needed.
Identifying the Segments

4. Create Segment Profiles
Once you have divided the market into
different segments, you must list out the
characteristics or qualities of each
segment be it the demographics,
psychology or any other factor. This
would help you in planning out which
segment to target for your multi-channel
marketing campaigns and how.

5. Find The Most Attractive Segment
Once you have divided the market into different
segments, you must identify the most attractive
segment which consist of potential buyers for your
products or services. If you have done a
psychographic segmentation, you will have to choose
your target segment based on the psychologies of
your segmented groups. Also, you can select
multiple segments that you think may need the
products/ services that you offer.

6. Positioning
Once you know who your target
customers are. The next step is to
position your brand/ product/ services in
the minds of your target market. Brand
positioning is one of the most important
exercises which should be done
meticulously.

7. Segment Expansion
Segmentation is a continuous process. Once you
have decided your target customer segment.
You must invest continuously to expand your
customer base and make improvisations based
on competitive factors and changing consumer
needs.

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