How To Segment A Target Market
January 28, 2013 Leave a comment
One of the tings a new business needs to focus on is determining who their target market is. Although when most people think about a target market, most think of a consumer target market, like 25-35 year-old women. A target market can be segmented in multiple different ways, not just demographically. There are both consumer based segmentation as well as business based segmentation.
Lets take a look at a few ways to break out both B2C and B2B target markets.
Consumer Segmentation: A consumer based business, also known as a C2B, can segment customer in one or more of the following areas:
• Demographics: Characteristics of a group of people like age, income, gender, or ethnicity.
• Psychographics: Characteristics based on how people act, such as spending patterns and hobbies.
• Usage of product/service: How (and how often) people use the widget that the company sells.
B2B Segmentation: A business that sells to other businesses, or B2B, needs to look at segmenting in areas that are appropriate to their characteristics, like:
• Firmographics: Specific characteristics of the organization like, profit or non-profit, firm employee or revenue size, industry, or growth trends. Think of this as demographics for companies.
• Channel position: Specific reference to where in the distribution channel the company is. Is the company a manufacturer or part of the distribution channel?
How are some other ways you can think of to segment your customers?
–J. Nolfo helps companies understand their market and customers though a variety of market research strategies. He has over ten years of experience of market research for strategic planning purposes. He is the Director of Research at Rhino Market Research. He shares his thoughts about market research and business concepts with his blog “The Rhino Crash Blog…Understanding Market Research in Business“. If you would like to discuss this blog or how J. can help you understand your market and customer needs, email him at email@example.com.