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Market Segmentation Market segmentation is a broad term used in market research that covers a host of different possible approaches to analyzing customers. Broadly speaking, it focuses on dividing customers into groups that can be further analyzed for a number of different issues. The reason for segmenting is that customers within segments have more in common with each other than with customers in the remaining segments. This communality helps focus marketing efforts toward each segment. Basically, customers who share similar characteristics on key defining attributes have similar needs, and this similarity allows development of specialized products and/or messages that uniquely addresses those needs. Approaches to developing market segments usually fall into one of three broad groups, including: Each approach has value when used in selected circumstances. At MRA, we recommend that our client's adopt a customer-focused approach that emphasizes the needs, concerns and behaviors of customers when relating to your company. This often leads us to recommend a Multi-Attribute Segmentation model to help our customers focus on what the customer wants. |